Deductions for Meals & Entertainment – Did You Know?
The Tax Cuts and Jobs Act (TCJA) of 2017 changed the rules for deducting meal and entertainment expenses on business tax forms. For the most part, the 50% deduction for meals directly connected to the conduct of your business remains intact, as long as the expense is not extravagant. However, the deduction for entertainment expenses has been eliminated, with only a few very specific and rare exceptions.
Applying the new law can get complicated, because entertainment activities such as attending a basketball game often include the purchase of food. To find out if your meals associated with an entertainment event still qualify for the 50% deduction, you may need to consult a tax advisor with extensive knowledge of business tax rules. Most importantly, the TCJA expressly forbids reporting entertainment expenses under another expense category (such as advertising) in order to claim a deduction.
Itemized Deduction for Medical Expenses – Did You Know?
If you itemize deductions on your federal tax return, you may be able to deduct medical expenses that were not reimbursed by insurance. For tax years 2019 and beyond, your medical expenses must exceed 10% of your adjusted gross income (AGI) in order to qualify for the deduction.
Examples of deductible expenses can include oxygen tanks, contact lenses or eyeglasses, indoor or outdoor lift chairs, and lead-based paint removal if you have a child in your home. If anyone in your household depends on a powered medical appliance such as a CPAP machine or lift chair, you may also be able to deduct part of the cost of a backup generator to keep these appliances working during a power outage.
IRS Private Debt Collectors - Did You Know?
The IRS may assign certain cases of overdue debts to private debt collectors, but only after giving written notice. Any payment to the private debt collectors should only be made payable to the U.S Treasury.
There are currently only four contractors authorized for collection: CBE Group of Cedar Falls, Iowa; Conserve of Fairport, N.Y.; Performant of Livermore, Calif.; and Pioneer of Horseheads, N.Y.