BREAKING NEWS – Corporate Transparency Act on Hold
as of Monday, March 3, 2024
On Friday March 1, 2024, the U.S. District Court for the District of Alabama declared the Corporate Transparency Act (CTA) unconstitutional. In the case of National Small Business Association v. Yellen (Case No. 5:22-cv-01448) [1], initiated by the National Small Business United, the challenge was against the CTA’s mandate for small businesses to disclose their beneficial owners to the Financial Crimes Enforcement Network (FinCEN).
The ruling has the effect of suspending all BOI filing requirements for now, all enforcement actions, and all compliance concerns including questions of “practicing law without a license.” Experts believe the ruling will be appealed, probably to the Supreme Court, so this is a temporary filing requirement suspension until a final appeal is exhausted. Voluntary filing appears to still be allowed if for some reason a client desires to file.
Deductions and Credits for Homeowners and New Home Buyers
Home ownership can provide a number of tax benefits. For example, you may generally claim a tax deduction for mortgage interest for your main home, along with eligible mortgage insurance premiums, up to the current IRS limit. However, you may only claim these benefits if you itemize deductions, rather than taking the standard deduction for your filing status. The home mortgage interest deduction may be particularly valuable for new homeowners, since payments during the early years of a mortgage consist primarily of interest charges.
In addition to home mortgage interest and mortgage insurance premiums, homeowners may generally deduct state and local property taxes. However, property tax deductions may be subject to the general $10,000 deduction limit for state and local taxes. Also, in order to deduct property taxes, you must itemize deductions on your return, rather than taking the standard deduction.
Non-deductible home ownership expenses include utilities, repairs, insurance (other than mortgage insurance), most closing costs, depreciation, homeowners’ association fees, and payments on the principal of a mortgage loan.
If you receive a Mortgage Credit Certificate (MCC) from your state or local government, you may also qualify for the Mortgage Interest Credit. This credit can reduce your tax on a dollar-for-dollar basis, and you do not need to itemize deductions in order to claim it.