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Backdoor Roth IRA A Strategic Retirement Planning Tool for High-Income Individuals

Backdoor Roth IRA Strategy: A Smart Tax Move for High-Income Earners in 2025

Backdoor Roth IRA: A Strategic Retirement Planning Tool for High-Income Individuals A Backdoor Roth IRA is a legal and effective strategy that allows high-income earners, who exceed the income limits for direct Roth IRA contributions, to still benefit from the tax advantages of a Roth account. This method involves contributing to a traditional IRA and […]

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IRS Introduces Form 7217 for Reporting Partner Basis in Distributed Property

IRS Introduces Form 7217 for Reporting Partner Basis in Distributed Property

The IRS has released a draft version of Form 7217, Partner’s Report of Property Distributed by a Partnership, which partners must use starting with the 2024 tax year to report their tax basis in property distributed to them by partnerships. This new requirement aims to enhance transparency by requiring partners to disclose details such as

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Treasury Department Halts Enforcement of Corporate Transparency Act for U.S. Citizens and Businesses

Treasury Department Halts Enforcement of Corporate Transparency Act for U.S. Citizens and Businesses

The Treasury Department announced today that it will not enforce any penalties or fines related to the Corporate Transparency Act’s beneficial ownership reporting rule, both under existing deadlines and after upcoming regulatory changes. Additionally, a proposed rule will be introduced to limit the reporting requirement to foreign companies only. This move aims to support American

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If your CPA has recently retired

Is Your CPA Retiring? Find a Trusted New CPA for 2024/2025 Tax Season!

Looking for a New CPA? We’re Here to Help! If your CPA has recently retired, you might be wondering who will handle your tax filings, financial planning, and accounting needs for 2024 and beyond. A trusted CPA is essential for managing your personal and business finances, ensuring compliance, and maximizing tax benefits. At KB CPA

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The 2/7 Rule for Wages and Maximizing QBI Deduction

The 2/7 Rule for Wages and Maximizing QBI Deduction

The Qualified Business Income (QBI) deduction offers owners of pass-through entities a significant tax advantage by allowing a deduction of up to 20% of their qualified business income. However, maximizing this deduction requires careful consideration of various factors, including taxable income thresholds and wage limitations. Understanding the 2/7 Rule: For taxpayers whose taxable income exceeds

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Evaluating Fee-for-Service Activities

Evaluating Fee-for-Service Activities: Ensuring Substantial Alignment with Exempt Purposes.

Sec. 501(c)(3) organizations engaging in fee-for-service activities must determine whether these activities advance or are “substantially related” to their exempt purpose. This distinction is critical for maintaining tax-exempt status and avoiding the unrelated business income tax (UBIT). Generally, services are not considered substantially related simply because they are provided to other tax-exempt organizations or offered

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Like-Kind Exchanges of Real Estate

A Professional Guide to Like-Kind Exchanges of Real Estate: Basics, Updates, and Examples

The ability to defer taxes through like-kind exchanges has long been a cornerstone of U.S. tax policy, tracing its origins to the Revenue Act of 1921. Modernized under Sec. 1031, this provision encourages economic growth by allowing taxpayers to defer taxes when exchanging real property of a similar kind. This guide provides an overview of

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IRS Announces New Tax Brackets and Increased Standard Deduction for 2025

IRS Announces New Tax Brackets and Increased Standard Deduction for 2025

The Internal Revenue Service (IRS) has released its annual inflation adjustments for tax brackets and standard deductions for the 2025 tax year. These updates aim to help Americans potentially retain more of their income in the upcoming year. Each year, the IRS adjusts the federal income tax brackets, standard deduction, and other tax provisions to

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How Tax Reforms Can Strengthen Americans’ Diminishing Savings

As savings from the pandemic era dwindle and financial stress becomes the leading concern for most Americans, it is evident that the U.S. needs policies that encourage increased savings. Personal savings provide financial security and drive economic growth through investment. However, our current tax system imposes double taxation on savings, incentivizing immediate consumption rather than

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