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Nissen and Associates is proud to announce that Michelle Long is a licensed Enrolled Agent (EA). Having completed her exams earlier this year, Michelle received her EA certificate in April 2022 and we could not be happier for her! Congratulations Michelle! Michelle’s responsibilities include business, individual and non-profit tax return preparation, auditing, and bookkeeping. She is …
Considering if your small business is able to qualify for a home office deduction? If you are a business owner and use part of your home for business, you may qualify for the office-in-home tax deduction. This deduction reduces both income and self-employment taxes. While the term “home office” is used to describe when a …
While there are a number of reasons to consider converting a home into a rental, there are also tax issues need to be dealt with. Home values are through the roof. Demand for housing exceeding the available inventory. Current interest rates are at an all time low. It’s no wonder homeowners are converting their existing …
Considering purchasing an electric vehicle and expect to receive federal electric vehicle credits along with the purchase? Be sure to do your homework first. There is a phaseout based on a manufacturer’s sales of electric vehicles that impacts the credit available to the purchasers of the vehicles. Many popular manufacturers like Tesla and General Motors …
Congratulations to Michelle Long! Michelle Long will soon be able to add a set of initials after her last name. Recently Michelle took and passed the final exam (of 3) required for the Enrolled Agent certification. However, currently she’s waiting (along with everyone else) for the IRS to acknowledge her achievement and send her the …
Since the pandemic, more people than ever are working remotely and telecommuting worldwide. And with the variety of work locations, especially concerning foreign income, comes tax reporting issues. One or more of these may be relevant to your situation. The following tax reporting issues, which you may not be aware of, apply to individuals. In …
If this year, you need to consider some payment options to help pay your taxes, you are not alone. Although most American taxpayers (74% in 2020) receive a refund when they file income tax returns, many end up owing. And of those who owe, many don’t have the means to pay by the return due …
Most charitable contributions are deducted as part of a taxpayer’s itemized deductions on IRS Schedule A. That is, except for the special 2020 and 2021 provisions that allow up to $300 of cash donations as a deduction for non-itemizers. ($600 for married taxpayers filing jointly for 2021.) Charitable contributions can take many forms, and some …
Did you know? There’s a special tax benefit for inheritances. You may hear people use the term “Stepped-Up Basis”. This is a tax provision that can be quite beneficial to people who inherit property. It allows beneficiaries of an inheritance to reduce or even avoid taxes when selling inherited property. When an individual sells property, …
If you spend much time in a casio, it’s important to be aware of gambling and tax traps that can occur. Although gambling may seem to be a recreational activity for many taxpayers that is not the case concerning the government. They look at it as a source of tax revenue. And as one might …
If you have income coming in from a side hustle, be aware that reporting requirements have changed. For several years now, the IRS has required payments made to merchants through various marketplaces, payment processors (credit & debit cards), and third-party settlement organizations (TPSOs) to be reported on Form 1099-K. The purpose being to uncover merchants …
Have you ever considered the deductibility of installing medically related home improvements? If you are adding some medically related home modifications this year, you should. According to the Social Security Administration, 10,000 baby boomers a day are reaching the age of 65. As of 2018, 16% of Americans were age 65 or older. And by …
Questioning if you should opt out of the advance child tax credit? If you have children under the age of 18, you might have already received your first payment. Remember: this is money you would have gotten credit for on 2021’s tax return when you file it next year. You are just receiving it in …
Is there a tax deduction for special education tuition? And how do you know if a special education school qualifies for that tax break? These questions come into our offices every year – so we wanted to share what the IRS has to say. We all know one component of itemized deductions is the cost …
Curious about how the interest paid on borrowed money? For example, if you borrow money will the interest you pay be deductible for income tax purposes? The deductibility of loaned money is complicated. And unfortunately, not all the interest an individual pays is tax-deductible. The rules for deducting interest vary, and depend on what the …
If you’re debating a reverse mortgage to free up money, this article may help. With inflation on the rise and medical care costs escalating, you may wonder what options are available for seniors to keep up with rising costs? Especially if they have a home mortgage and their retirement income is fixed. Often a fixed …
Use IRS Letters 6419 and 6475 to help reconcile your tax return in 2021. Early in 2021 Congress passed the American Rescue Plan. This plan included a provision that increased the child tax credit amount and upped the age limit of eligible children. Normally, the credit was $2,000 per eligible child under age 17. However, …
We’ve been singing, “For He’s a Jolly Good Fellow” ever since Scott Nissen, EA returned from Arizona with his newest credentials. Our very own Scott Nissen, Enrolled Agent (EA), from Bellingham, WA was among 116 tax professionals who recently earned the elite National Tax Practice Institute™ (NTPI®) Fellow designation from the National Association of Enrolled …
The question “What is tax basis?” comes up in a tax accountant’s office weekly. For tax purposes, the term “basis” refers to the monetary value used to measure a gain or loss. For instance, if you purchase shares of a stock for $1,000, your basis in that stock is $1,000. If you then sell those …
Mental decline, including Dementia and Alzheimer’s disease are among the health issues that people understandably fear the most. Cognitive decline is devastating for the patient as well as for their loved ones. This is one of the few diseases where the family will often bear witness to the deterioration. And more challenging, they are often …
The IRS has been asking for a reporting requirement for cryptocurrency since inception. Over the last 3 years, the IRS has engaged in a virtual currency compliance campaign. This campaign specifically addresses tax noncompliance related to cryptocurrency use. The IRS’ efforts have included outreach to taxpayers through education, audits of taxpayers’ returns and even criminal …
Tax benefits for holiday gifts? There can be….! Every year – usually right after Thanksgiving – we start receiving questions about possible tax benefits resulting from gifts. Here are a few examples of gifts that can give back – in tax benefits! Tax Benefits For Holiday Gifts – The Gifts that Give Back! Electric Car …
Curious about the employee retention credit? Here’s an overview of what it is, and some challenges it has caused. President Biden signed the Infrastructure Investment and Jobs Act (IIJA) into law on November 15, 2021. One of the provisions of that legislation retroactively terminated the employee retention credit (ERC) early. The credit was previously available …
If you’re looking for year-end tax saving strategies, we have a few to share. It just seems hard to believe that the holiday season is almost upon us. Mainly because right after turkey and trees, comes the 2021 tax preparation season! With the end of the tax year just around the corner, tax-savvy individuals need …
