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When it comes to taxes, children are typically in lower income tax brackets in the USA. That is why many wealthy parents would shift income-producing assets to their children’s names to avoid paying taxes at their top marginal tax rates, up to 37%.  But the Tax Reform Act of 1986 changed it all. The new act requires a child’s unearned income above a specific threshold to be taxed at the parent’s tax rates. As a result, ‘Kiddie Tax’ was born. Despite its sweet-sounding moniker, the “kiddie tax” is an often-misunderstood tax provision that can result in sizable income tax liability for your family. So, it is important to understand what kiddie tax is and how to avoid it from tax services San Bernardino . If your child has an unearned income, it is a tax you should be aware of. What is Kiddie Tax? Kiddie Tax was introduced to deter wealthy parents from pushing certain incomes into their children’s lower tax rates. This tax provision has seen many revisions. As of 2023 kiddie tax rules, a

2024 TAX DEADLINE Are you feeling overwhelmed because tax season is here, with a tax deadline looming, is it twisting your brain? Listen, you’re not in this alone. At G&S Accountancy, we’re the pros who make tax season stress-free. Think of us as your tax season ninjas, tackling everything from the complexities of 1099 forms to strategizing for the best tax benefits. We’re all about turning the tax maze, including that tax deadline, into a walk in the park. Here’s the cool part: With G&S Accountancy, you step into tax season with confidence with our tax services Rancho Cucamonga CA . Why? Because we handle every detail with precision and care. It’s not just about filing taxes; it’s about enhancing your financial well-being. Personalized, expert guidance that simplifies your tax process? That’s what we do. Join us, and experience a tax season that’s not just bearable, but actually smooth and well-managed. Understanding the Basics of Tax Season Tax season – a puzzle, right? All t

Business assets such as a computer, machinery, vehicles, or other equipment that wear out over time. Businesses are allowed to write off a part of the asset’s loss in value when planning their taxes throughout its life, thus reducing their taxable income by that amount. In 2002, the federal Job Creation and Worker Assistance Act allowed businesses of 30% depreciation on certain new property. As of September 2017, lawmakers revised bonus depreciation to 100% for new and used property. And starting in 2023, bonus depreciation will decline by 20% each year, becoming ‘zero’ in 2027. IRC Section 179 Expensing is an equally beneficial alternative to bonus depreciation. Let’s discuss how: What is IRC Section 179 Expensing? As per IRC (Internal Revenue Code) Section 179, eligible businesses can immediately deduct the cost of qualifying purchases such as equipment or machinery. This allows companies to get an immediate break from their tax burden. This rule is beneficial particularly for small