Inflation can significantly impact many aspects of daily life, including taxes. The IRS periodically makes adjustments based on inflation to ensure fairness and maintain purchasing power. These changes encompass various tax provisions that can influence your financial plans and obligations.  Here’s an overview of the significant updates and adjustments in tax brackets, deductions, and exemptions for 2024. What Is Inflation? Inflation is the sustained increase in an economy’s goods and services price level over a while. This means your money buys less over time, and your purchasing power d ..read more

With 2023 coming to a close, individuals and businesses must take the time to conduct a financial and tax assessment. An end-of-year tax plan can pave the way for a smoother tax season and unlock substantial savings. This is because careful planning allows you to take advantage of deductions, credits, and strategies that align with your unique financial situation. Read on to understand the value of end-of-the-year planning and learn some essential tips to help you. Importance of End-of-Year Tax Planning Planning for taxes is an essential part of your year-end financial assessment. Whether you ..read more

The journey through college and the transition into the professional world is undoubtedly an exciting and transformative period. However, the financial challenges students and recent graduates face can be daunting. Managing tuition fees, student loans, and living expenses requires strategic financial planning.  One aspect often overlooked in this process is understanding and optimizing tax strategies. In this blog, we will explore the intricacies of the U.S. tax system and provide valuable tax-saving tips tailored for college students and recent graduates. Understanding the Tax Landscape ..read more

With the news of climate change rapidly affecting the whole planet, many of us are undoubtedly thinking about what we can do to help decrease our carbon footprint. July 2023 has been the warmest month since 1850. While it would require rethinking and restructuring all current industries to reverse climate change, any contribution we can make individually is invaluable.  Research tells us that passenger vehicles typically emit about 4.6 metric tons of CO2 annually. With all-electric vehicles producing zero tailpipe emissions, purchasing one can be an essential step toward curbing your annu ..read more

Rental income can be a lucrative source of passive income for many property owners in California. However, as with any type of income, it’s important to understand how it’s taxed. California has its own set of rules and regulations for taxing rental income. This can be complex and confusing for those who are unfamiliar with the process. Read on to learn more about how rental income is taxed in California.   How is Rental Income Taxed in California? According to the IRS, rental properties are properties that you own and rent out to tenants for 15 days or more each year. Tax payers have t ..read more

Taxes are a complex and often confusing topic for individuals and businesses in the United States. For individuals, the federal tax rate changes depending on filing status, income level, and deductions. Additionally, the rules and regulations surrounding taxes change frequently, making it difficult for individuals and businesses to stay updated. The Internal Revenue Service (IRS) has numerous rules, regulations, and forms that you must follow to report income accurately and determine the correct amount of taxes owed. Understanding the tax rates, how to calculate them, and how to get relief ca ..read more

Running a home-based business offers a myriad of benefits, from the flexibility of working from home to reduced overhead costs. But did you know that there are also significant tax advantages available for home-based entrepreneurs?  Read on as we get into various tax deductions related to home office expenses, equipment, and business-related costs to help you make the most of your home-based business tax strategy. Maximizing Tax Savings: Home-Based Deductions to Be Aware Of By understanding and leveraging tax deductions, you can potentially reduce your taxable income, ultimately saving mo ..read more

Even though worldwide restrictions due to the COVID-19 pandemic have been significantly lifted, remote work remains a growing global trend. In fact, research shows that 12.7% of full-time employees work from home. It is also estimated that by 2025, 32.6 million Americans will work remotely.  This is because remote work comes with many benefits, such as more opportunities for employers to attract top talent for their openings as well as for employees to save on costs related to commuting to their offices. Still, the new era of remote work is associated with some challenges. In these changi ..read more

Identity theft is a significant risk that everyone needs to be aware of. In fact, the Franchise Tax Board of California (FTB) has taken proactive measures to protect taxpayers and tax professionals. This has taken the form of FTB Forms 3904 and 4734D. These forms play a vital role in preventing identity theft and ensuring the security of personal and financial information. Want to learn more about each form and how to keep your identity safe? Then read on as our tax experts at Exact Tax Inc. shed some light on the significance of these forms and the measures taken by the FTB. What Is the Franc ..read more

Before founding a company, your first step would be determining its structure. It lays the foundation for long-term growth and impacts your day-to-day business operations. Since the right business structure also affects your taxes, this blog will explore the tax implications of each one. Tax Implications and Benefits Taxes play a huge role in the day-to-day operations of any company. The best legal structure can help you minimize your tax liability. 1. Sole Proprietorship In a sole proprietorship, the owner is not legally separate from the company and is responsible for all the debts incurred ..read more