Viktoriya Barsukova, EA, MBA

Should You Skip Home Office Depreciation to Avoid Recapture Tax? If you are like most taxpayers, the words “recapture tax” describe something you want to avoid. To avoid recapture of depreciation deductions on the home office, taxpayers do not claim depreciation. When the taxpayer does not claim depreciation, the tax law imposes the allowed-versus-allowable depreciation rule. For this purpose: • The depreciation allowed is the amount you claimed on your tax return. • The depreciation...

Deductible Clothing As a general rule, clothing is not tax-deductible, even if it is purchased for work or business use. The only exception is if the business clothing is not suitable for street wear. Clothing That Is Not Tax-Deductible Clothing used for work or business is not deductible if it is suitable for everyday wear.¹ This is so even if the clothing was purchased solely for work and is not worn outside of work. Examples of clothing that is not deductible are business suits, skirts...

Tax Law Wrap-Up As tax professionals gear up for the 2025 filing season, staying ahead of the latest changes is essential. This year’s wrap-up brings together the inflation-adjusted amounts you’ll rely on most, along with the critical updates introduced in the One Big Beautiful Bill Act (OBBBA; H.R.1). Here you’ll find the practical details you need to brief clients with confidence and refresh your organizers, checklists and workpapers before the season hits full stride. 2025 tax rates There...