Big Tax Changes to Know for 2024

2024 has brought some big tax changes with it. It’s essential to stay informed about these developments to ensure compliance and make the most of available opportunities.

Here are Some of the Key Topics Covered in this Report:

SECURE 2.0 Adds New Escapes from the 10% Early Withdrawal Penalty, page 1

Ordinarily, you must pay a 10 percent penalty when you withdraw your money from an IRA or other retirement account before you reach age 59 1/2.This is in addition to paying the regular income tax in the case of tax-deferred accounts. But there have always been exceptions.

NFTs and Taxes: New Rules and What You Need to Know, page 6

Non-fungible tokens (NFTs) are a type of digital asset that can be bought and sold. Some people have made a lot of money from NFTs. Many people have lost money. Where there’s money, there are taxes. Here’s what you need to know about taxes for NFTs.

Back Again: Dutch-Treat Business Meals—but Beware, page 14

If you go to a Dutch-treat lunch with a colleague or have a member lunch at your monthly chamber of commerce meeting, you face two opposing tax laws:

• The law that denies your deductions for personal living expenses (food)
• The law that allows business meals as tax deductions

IRS Makes a Mess of the ERC—What to Do Now?, page 19

The IRS barrage of negative information and intimidation scares many tax professionals and business owners. But here’s the deal: don’t be afraid of legitimate ERC claims.

Beware: New 2024 Businesses and Rentals Trigger FinCEN Filings, page 22

If, in 2024, you start a small business or buy a rental property using a new limited liability company (LLC), you can trigger the need to file new federal reports and keep them up to date.

Businesses and Rentals Existing on Jan. 1 Trigger FinCEN Filings, page 30

Do you use an LLC to own a rental property or operate a business? If so, you likely face the new filing requirement by the Department of the Treasury’s financial intelligence unit, Financial Crimes Enforcement Network (FinCEN), including big penalties and possible prison time for failure to file. More on this later.

These topics are just a snapshot of the tax landscape for 2024. Our aim is to equip you with the knowledge necessary to navigate these changes effectively and optimize your tax situation.

If you have any specific questions or concerns related to these subjects or any other tax matters, please don’t hesitate to reach out to our team. We are here to assist you.

SERVICES WE OFFER RELATED TO THIS TOPIC

The information contained in this post is for general use and educational purposes only.  However, we do offer specific services to our clients to help them implement the strategies mentioned above.  For specific information and to determine if these services may be a good fit for you, please select any of the services listed below. 

You May Also Like…

Investment Advisory Services are offered through Lifetime Financial, Inc., a Registered Investment Advisory. Insurance and other financial products and services are offered through Lifetime Paradigm, Inc. or Lifetime Paradigm Insurance Services. Neither Lifetime Financial, Inc. nor Lifetime Paradigm, Inc., or its associates and subsidiaries provide any specific tax or legal advice. Only guidance is provided in these areas. For specific recommendations please consult with a qualified, licensed Advisor. Past performance is no guarantee of future results. Your results can and will vary. Investments are subject to risk, including market and interest rate fluctuations. Investors can and do lose money and, unless otherwise noted, they are not guaranteed. Information provided is for educational purposes only and is not intended for the sale or purchase of any specific securities product, service or investment strategy. BE SURE TO FIRST CONSULT WITH A QUALIFIED FINANCIAL ADVISER, TAX PROFESSIONAL, OR ATTORNEY BEFORE IMPLEMENTING ANY STRATEGY OR RECOMMENDATION DISCUSSED HEREIN.

This message is intended for the use of the individual or entity to which it is addressed and may contain information that is privileged, confidential and exempt from disclosure under applicable law. If you are not the intended recipient, any dissemination, distribution or copying of this communication is strictly prohibited. If you think you have received this communication in error, please notify us immediately by reply e-mail or by telephone (800) 810-1736 and delete the original message.

This notice is required by IRS Circular 230, which regulates written communications about federal tax matters between tax advisors and their clients. To the extent the preceding correspondence and/or any attachment is a written tax advice communication, it is not a full "covered opinion." Accordingly, this advice is not intended and cannot be used for the purpose of avoiding penalties that may be imposed by the IRS.