Gray & Harasym
Dear Clients:nnAn IRS ruling in 2014 allowed individuals who received state payments in order to care for disabled individuals to exclude those payments from income. However, a recent interpretation by the Chief Counsel of the IRS says those payments may be subject to FICA tax, depending on the facts. If you are the spouse or parent of the disabled individual, your income is still exempt from all taxes, but other situations may fall under the new interpretation. Contact us if you have any specific questions about this recent change.nnOne of the extended tax credits in the recently passed Inflation Reduction Act allows a federal tax credit for the installation of an electric-vehicle charger in your main home. The credit is equal to the smaller of $1,000 or 30% of the cost of the equipment and installation. Businesses can get a better credit, the smaller of $100,000 or 30% of the cost.nnThinking of purchasing a vehicle for your business? If you are looking at a heavy SUV (>6,000 lb.), you may want to place it in service before year end. Under current law, 100% of the cost can be deducted for federal taxes, but that drops to 80% of the cost starting in 2023.nnAs always, if you have any questions, please do not hesitate to contact us. We are here to help.nnCeleste & Mark...
