Author: Paul Belfiore

Which Charitable Contributions are Not Taxable?

Written by Paul Belfiore on November 25, 2022. Posted in Blog, Taxes.

Nashua, NH Resident Looks for Advice

Any charitable donation that offers you something in return as the donating person is not tax-deductible. This includes money spent on charitable fundraisers where there is a prize, such as a raffle or drawing, is not tax-deductible. Similarly, a donation that is to purchase a product for your own use, such as cookies, wrapping paper, or another item is not considered a charitable deduction. When itemizing charitable deductions on your taxes, keep in mind that these donations cannot be from which you have receive an item yourself, including a chance to win something.

How is the Home Office Deduction Calculated?

Written by Paul Belfiore on November 11, 2022. Posted in Blog, Taxes.

Self-Employed Brookline, NH Resident Has Questions

When claiming the home office deduction on your taxes you can use the simple or regular method for calculating your deduction. To determine which is the best calculation, you will want to determine which of the two will offer you the larger deduction. With the simplified method, you would complete a Simplified Method Worksheet, supplied by the IRS. This will require you to indicate the square footage of your business space in the home among other factors to determine the deduction amount. The regular deduction method uses Form 8829 and factors in mortgage interest, real estate taxes, insurance, and utilities to determine the deduction amount.

Can a Business Deduct Charitable Contributions on Their Taxes?

Written by Paul Belfiore on October 28, 2022. Posted in Blog, Taxes.

Goffstown, NH Business Owner Looks for Clarification

Only businesses classified as corporations can deduct charitable donations on their business tax return. These contributions to charity cannot be more than 60% of the adjusted gross income. Business owners for other types, including sole proprietorships and partnerships, can deduct charitable contributions on their own personal tax return.

How to Reduce Taxes from the Sale of Property

Written by Paul Belfiore on October 13, 2022. Posted in Blog, Taxes.

Hudson, NH Resident Looks to Lessen Future Tax Burden

Profit from the sale of a home will fall under capital gains and be taxed accordingly. If your property has increased in value significantly since the time of purchase, you may be hit with a large and unexpected tax burden. The difference of what was paid for the home initially and the selling price, less closing costs, real estate commissions, and other fees is considered capital gains. If you have lived in the residence for at least two of the past five years you can exempt $250,000 and $500,000 for married couples filing jointly. Any profit exceeding this amount can be subjected to the capital gains tax.

What are Some Tax Credits for Employers?

Written by Paul Belfiore on September 29, 2022. Posted in Taxes.

Litchfield, NH Business Owners Looks for Advice

As a small business owner there are some important tax credits that can save you money, including the Work Opportunity Tax Credit. This credit, worth up to $9,600 per employee, is for veterans, long-term unemployed individuals who have been actively looking for work for 27 weeks or longer, and those receiving assistance from TANF (Temporary Assistance for Needy Families) or SNAP (Supplemental Nutrition Assistance Program). Those small businesses that offer health care to employees may be eligible for the Small Business Health Care Credit, which can cover up to 50% of healthcare premiums paid by the company for employees’ healthcare.

How Does Filing for Bankruptcy Affect Tax Debt?

Written by Paul Belfiore on September 16, 2022. Posted in Blog, Taxes.

Milford, NH Resident Weighs His Options

Filing for bankruptcy is a difficult decision, and one that should not be taken lightly. While under federal bankruptcy law this will stop creditors from chasing you, tax debt is treated differently being considered nondischargeable priority debt. With exceptions, bankruptcy will not eliminate this type of debt and it is given priority over other claims. If you have a tax lien against your property, filing for bankruptcy will not remove the lien and the IRS will still have a claim to your property until the debt is paid.

Can Business Meals Be Used as a Tax Deduction?

Written by Paul Belfiore on August 26, 2022. Posted in Blog, Taxes.

Amherst, NH Business Owner Has Questions

In 2018 the Tax Cuts and Jobs Act eliminated the ability for businesses to deduct entertainment and recreation expenses. However, the Business Meal Tax Deduction was not eliminated with this change. To qualify for this deduction the meal expense may not be lavish or extravagant, as subjectively determined. The taxpayer or an employee of the taxpayer must be present at the meal and the food and drink must be provided to a business associate.

Is My Child’s Summer Camp and Daycare Tax-Deductible?

Written by Paul Belfiore on August 11, 2022. Posted in Blog, Taxes.

Milford, NH Resident Seeks Answers

Summer camp and daycare is tax deductible for children under age 13 or if the child is a disabled dependent. The tax credit may cover up to $3,000 in qualifying expenses for one child or up to $6,000 for two or more children. This includes money paid to a daycare center, babysitter, summer camp, or other provider offering childcare. Covered under the Child and Dependent Care Credit, this was created for working parents to offset the price for childcare. However, parents who are full-time students and those that are unemployed and actively looking for work may also qualify for this deduction

What Are the Rules for Claiming a Dependent on Your Tax Return?

Written by Paul Belfiore on July 28, 2022. Posted in Blog, Taxes.

Brookline, NH Resident Seeks Advice

There are tax deductions for those that have dependents living full-time in their household, the most common of which is the Child Tax Credit and Child and Dependent Care Credit. To qualify as a dependent, this can be a child that is under age 19 or under 24 if they are a full-time student. If the child is permanently disabled, you can qualify for these deductions regardless of age. Caring for aging relatives that are living in your home may also qualify for a tax deduction as a dependent if you are financially supporting them.

What Determines Head of Household Status When Filing Taxes?

Written by Paul Belfiore on July 14, 2022. Posted in Blog, Taxes.

Goffstown, NH Resident Has Questions

Head of household tax filers can claim significantly more tax deduction than their single counterparts. To qualify for head of household status you must be unmarried or living separately from your spouse for at least six months of the year. Temporary absences for work or school are not considered living separately. The head of household must pay more than half of the expenses for the home, including rent or a mortgage, utilities, repairs and property taxes. You must have a qualifying dependent, such as a child or elderly parent, residing in the home the majority of the year.