October 29, 2024 Here are some key points about renting personal property, which includes equipment, vehicles, and furniture. The tax treatment differs from real estate rentals, and how you classify the rental activity will affect how you report income, expenses, and potential self-employment tax. Classification of Personal Property Rentals The tax code treats personal property …

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October 15, 2024 If you’ve recently been billed by the IRS with the claim that you owe a penalty for late filing, late payment, or missed employment tax deposits, I urge you to pause before making any payment. You may not have to pay that penalty at all. The IRS often imposes steep penalties for …

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October 8, 2024 The clock continues to tick. Here are the upcoming deadlines for filing your Business Ownership Information (BOI) reports with the U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN). Deadlines If your business existed as of January 1, 2024, you must file your BOI report by January 1, 2025. If you …

BOI Reporting Deadline Is Closing In For Businesses Read More »

September 20, 2024 Does your business classify workers as independent contractors instead of employees? You should know that the U.S. Department of Labor is trying to make it harder for all businesses to use independent contractors. The Department of Labor enforces the Fair Labor Standards Act (FLSA), the federal law that requires most employers to …

The Department of Labor Makes It Harder to Hire Independent Contractors Read More »

Self-employment taxes are substantial, and most people want to minimize them. Self-employed taxpayers often avoid self-employment taxes by operating as an S corporation. The distributions from the S corporation are not subject to self-employment tax. But Social Security and Medicare tax must be paid on the shareholders’ employee compensation (which must be reasonable based on …

Limited Partners and Self-Employment Taxes Read More »

The kiddie tax was enacted by Congress to prevent parents from passing investment income to their children, who typically have a lower tax rate. Under the kiddie tax rules, a portion of a child’s net unearned income may be taxed at the parent’s marginal federal income tax rate. The kiddie tax applies to children up …

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August 20, 2024 Long-term care costs can be substantial, and neither Medicare nor Medicaid provide comprehensive coverage for most people. Long-term care insurance can help protect your finances, and there may be ways to deduct the premiums, depending on your business structure. Here are four key points to consider: Are you a business owner that …

Tax Guide to Deducting Long-Term Care Insurance Premiums Read More »

July 30, 2024 Tax-advantaged retirement accounts such as IRAs are a great way to save for retirement. But when you establish a traditional IRA with a bank, a brokerage, or a trust company, you are ordinarily limited to a narrow range of investment options, such as CDs and publicly traded stocks, bonds, mutual funds, and …

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July 16, 2024 If you own your own business and operate as a proprietorship or partnership (wherein your spouse is not a partner), one of the smartest tax moves you can make is hiring your spouse to work as your employee. But the tax savings may be a mirage if you don’t pay your spouse …

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July 9, 2024 If you have an office in your home that qualifies for the home-office deduction and you employ a cleaning person who maintains both your home and your home office, there are a couple of tax considerations to keep in mind. The amount you pay your cleaning person for their services can have …

The Cleaning Crew and Your Home-Office Deduction Read More »

June 25, 2024 Key Insights into Depreciation Here are some crucial insights into depreciation, particularly regarding business or rental assets. When Does Depreciation Start? Technically, depreciation begins not when you use an asset but when it’s ready and available for its intended purpose. For instance: • A rental property begins depreciating when it’s available to …

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When it comes to taxes, the tax code treats professional gamblers better than recreational gamblers. Unlike recreational gamblers, professionals get to deduct all their gambling expenses (including travel, lodging, and meal expenses) up to their annual winnings, without itemizing. This is a big advantage. If you gamble a lot, you could benefit by qualifying as …

Do You Qualify as a Tax Law–Defined Professional Gambler? Read More »

IRAs for Young Adults As we navigate the complexities of financial planning, one opportunity stands out for young adults: individual retirement accounts (IRAs). Now is the perfect time to consider how you can leverage an IRA. Traditional and Roth IRAs: A Brief Overview Both traditional and Roth IRAs offer unique benefits, so the choice between …

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Selling Your Home to Your S Corporation June 4, 2024 If you want to convert your home to a rental property, you can improve your tax benefits by selling it to your S corporation. Benefits of Selling Your Home to Your S Corporation · Tax savings on home sale profit. By selling your home to …

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Did you know that you can group activities for real estate depreciation? Let’s expound on this… Common Situation Issue with Common Situation Solution: Grouping of Activities: Reg §1.469 Qualifications for Grouping One Activity is Insubstantial in Relation to the Other Insubstantial is not clearly defined, but there are some guidelines: Grouping Activities Together Results in …

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On January 1, 2024, the Corporate Transparency Act (CTA) went into effect. The CTA requires most smaller corporations, most limited liability companies, and some other business entities to file a beneficial ownership information (BOI) report with the U.S. Department of the Treasury Financial Crimes Enforcement Network (FinCEN). The BOI report identifies and provides contact information …

BOI Reporting Deemed Unconstitutional for Some Read More »

Here’s an idea: how about transforming your next vacation into business travel? With careful planning, your transportation to any destination could be fully deductible. This includes airfare—even first-class—luxury hotel stays, and cruise expenses. If you can tie your travel to business purposes, you can enjoy substantial tax savings, depending on your tax bracket. Two Main …

Turn Your Vacation—Even a Luxurious One—into Tax-Deductible Business Travel Read More »

If you invest or trade in Bitcoin, non-fungible tokens (NFTs), Stablecoins, or other digital assets, prepare for sweeping new tax reporting requirements. Congress wants the IRS to crack down on taxpayers who buy and sell crypto but don’t report or pay tax on their gains. To do so, it wants people and companies that facilitate …

New Crypto Tax Reporting Rules Are Coming Soon Read More »

Get up to $32,220 in Sick and Family Leave Tax Credits If you are self-employed or operate a small corporation, it’s likely that you have not applied for your sick and family leave tax credits. If that’s the case, we will need you to get your act together so we can file amended 2021 and …

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Estimated Tax Penalties The United States has a “pay as you go” tax system in which payments for income tax (and, where applicable, Social Security and Medicare taxes) must be made to the IRS throughout the year as income is earned, whether through withholding, by making estimated tax payments, or both. You suffer an estimated …

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You need to think about the sale of your rental property when you claim depreciation on your qualified improvement property (QIP). Gains may be subject to higher-than-expected tax rates due to Section 1245 and Section 1250 ordinary income recapture and other factors. Planning your depreciation methods can significantly impact your current tax liabilities and long-term …

Tax Implications of Selling Qualified Improvement Property (QIP) Read More »

Here’s an easy question: Do you need more 2023 tax deductions? If the answer is yes, continue reading. Next easy question: do you need a replacement business vehicle? If so, you can simultaneously solve or mitigate the first problem (needing more deductions) and the second problem (needing a replacement vehicle) if you can get your …

2023 Last-Minute Vehicle Purchases to Save on Taxes Read More »