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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 …

Know the Three Ways the Tax Law Treats Personal Property Rentals Read More »

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 …

Pause Before Paying IRS Penalties Read More »

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 …

The Kiddie Tax and How to Avoid It Read More »

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 …

Self-Directed IRAs Read More »

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 …

Strategic Insights for Employing Your Spouse Read More »

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 »