Now is the time to get the books updated, see where you stand, and schedule your year-end planning with us.
Buy I Bonds Now to Earn Huge Interest!
Inflation is high, but there is one good thing that can come from it. The U.S. Treasury Department is offering Series I bonds that pay a guaranteed 9.62% tax-deferred interest for six months. At the time of this email, the rate reset to 6.89%. The best part? It’s risk-free and you’ll be charged no state/local income taxes, (it resets every three months) when you cash in the bonds. The downside is that you can only purchase 10,000 per year. However, if you utilize your tax refund you can purchase an additional 5,000 for a total of 15,000 per year. If you have a corporation, you can buy an additional 10,000 of these bonds each year.
If you’re interested in learning more about this program, contact us today for advice!
Homeowners can Obtain New, Better Energy Tax Credits
The Inflation Reduction Act was signed into law on August 16th, 2022, and it improves these three tax credits for homeowners:
- Energy Efficient Home Improvement Credit—Provides a $1,200 annual cap (formerly a $500 lifetime cap) along with specific caps on some improvements. This has been extended through 2023 and enables homeowners to collect credits each year to upgrade their homes through energy efficiency projects, such as home insulation, electric panel upgrades, exterior windows/skylights/doors, and more.
- Residential Clean Energy Credit—This can be earned by upgrading a home for solar. The credit has been extended through 2034 and the credit has been increased from 26% to 30% for eligible property placed in service in 2022 through 2032. Best of all, there’s no annual cap or lifetime cap! If you spend $20,000 on a solar project for your home (which is normal), you’ll be looking at $6,000 in taxes back.
- Home Electric Vehicle Charger Credit—Extended through 2032, this law gives a tax credit to people who install home electric chargers. This is a non-refundable credit of 30% of the cost of the charger with a cap of $1,000. However, it’s important to note that this credit will only be available for homeowners in low-income and rural areas starting in 2023.
Getting Your Tax Credit for Commercial Electric Vehicle Purchases
A new law called the Inflation Reduction Act gives people a personal tax credit for electric vehicles, but did you know there’s also something in it for businesses? That’s right, this law also includes the clean vehicle credit, which gives a tax credit specifically for business-use electric vehicles. It is a much better tax credit for businesses because there are no income limitation restrictions for businesses that purchase or lease electric vehicles, (fully electric, plug-in hybrids, and fuel cell) for business use in 2023 or after. Contact us today to learn more about this credit!
You Can Still Claim the Employee Retention Credit on 2020 and 2021 Payroll Tax Returns!
IRS Falling Further Behind!
That’s right, the IRS still has millions of unprocessed tax returns in its queue. At the end of May, it was as large as, “21.3 million unprocessed paper tax returns, an increase of 1.3 million over the same time last year.”
Accountants & CPAs Wanted!
We’re always looking for great accountants and CPAs to join our team. If you know anyone who’s interested in a new opportunity, we would love an opportunity to speak with them! Check out our Careers page for more information.
MD LEWIS LLC is a small boutique CPA firm. We work primarily with businesses helping them make better decisions about their business finances including profits, taxes, and cash flows. We work closely with small business owners wanting to make more money, pay less tax, and spend more time on the things they love to do.