Answers to 15 Common Tax Questions
Ref. US News
This is the time of year when people’s minds are filled with tax issues – whether they’re searching for free tax help they can trust, trying to squeeze out more valuable deductions, hoping to avoid penalties or audits, eagerly awaiting their refunds or wanting to make sure they aren’t victims of tax scams.
1031 Like-Kind Exchange.
Financial and investment advisers should seek to understand the implications of a legislative proposal originally set forth in the American Families Plan that would severely limit benefits historically provided by Sec. 1031 of the Internal Revenue Code. Under the proposal, the deferral of capital gains from the exchange of real property used in a trade or business, or of investment property, would be limited to $500,000 ($1 million for married individuals filing jointly)
EV Tax Credit Rules
People who buy new electric vehicles may be eligible for a tax credit as high as $7,500, and used electric car owners may qualify for up to $4,000 in tax breaks as of 2023.
Standard Mileage Rate increase
The standard mileage rate for business travel will be 62.5 cents per mile, up 4 cents from the rate effective at the start of the year. The new rate for deductible medical or moving expenses (available for active-duty members of the military) will be 22 cents for the remainder of 2022, up 4 cents from the rate effective at the start of 2022. These new rates become effective July 1, 2022.