Global News

[ad_1] The electric vehicle tax credit just got a little bit more complicated with the announcement of a highly anticipated proposal which would apply to the battery components of eligible EVs. Under the proposed rule, EV manufacturers must certify each eligible vehicle meets key battery sourcing and manufacturing requirements which were laid out in the text of the Inflation Reduction Act. Those requirements apply to a $7,500 tax credit.  President Biden signed the act into law in August of 2022, but the Treasury Department  delayed the battery requirement portion of the tax credit ahead of 2023. Under the proposed guidance, batteries for EVs must meet a "critical mineral requirement" to be eligible for $3,750 of the tax credit. For those applying for the tax credit on a vehicle purchased in 2023, 40% of the minerals contained in the vehicle's battery must have been extracted or processed in the U.S. or in a nation that ...

[ad_1] The IRS is asking millions of taxpayers more than 20 states including California, Colorado and Florida who received tax rebates last year to hold off on filing their taxes.  The reason: The agency said it is seeking to clarify whether those tax rebates and special refunds are considered taxable income. "We expect to provide additional clarity for as many states and taxpayers as possible next week," the IRS said on February 3.  On Friday, the IRS provided guidance to those taxpayers: For the most part, those rebates aren't taxable.  "During a review, the IRS determined it will not challenge the taxability of payments related to general welfare and disaster relief," the tax agency said in its February 10 update . About 16 million California residents received " middle-class tax refund " checks of $350 per eligible taxpayer last year, part of a relief package designed by the state to help residents...

[ad_1] California lawmakers on Monday approved the nation's first penalty for gas price gouging, voting to give regulators the power to punish oil companies for profiting from the type of price spikes that hit Californians last summer. The Democrats in charge of the state Legislature worked quickly to pass the bill on Monday, just one week after it was introduced. It was an unusually fast process for a controversial issue, especially one opposed by the powerful oil industry, which has spent millions of dollars to stop it. Democratic Gov. Gavin Newsom used his political muscle to pass the bill, calling for a special legislative session last December to pass a new tax on oil company profits after the average price of gas in California hit a record high of $6.44 per gallon, according to AAA. Taking on the oil industry has been a major policy priority for Newsom, who is viewed as a potential future presidential candidate. He is expecte...

[ad_1] Despite the cooling market , many homeowners made money selling their property in 2022 — and part of that windfall may be taxable. Home sellers made a $112,000 profit on the typical sale in 2022, a 21% increase from 2021, and a 78% jump from two years ago, according to ATTOM , a nationwide property database.  While most sellers fall under the thresholds for capital gains taxes , high-dollar home sales or long-term ownership can trigger an unexpected bill, experts say. More from Smart Tax Planning: Here's a look at more tax-planning news. Here's how it works: Home sales profits are considered capital gains, with federal tax rates of 0%, 15% or 20%, depending on your 2022 taxable income. (You calculate "taxable income" by subtracting the greater of the standard or itemized deductions from your adjusted gross income.) As a single home seller, you can exclude up to $250,000 of your profit from capital gains taxes and you can shield up to $500,000 as a married ...