October 2019 - Philadelphia CPA
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October 2019

Tax reform changed the rules of the game when choosing your best tax structure. In looking over the possibilities, we note that a properly structured spousal partnership could be your best choice. Here are the tax benefits to you: Your spouse’s income is free from self-employment tax. ...

The IRS gives you two possible strategies for turning otherwise personal mileage into business mileage: Going to a temporary work location Establishing an office in the home as a principal office The temporary work location strategy contains some real unknowns, such as: What is a temporary...

 Do you have two or more cars in your household? If your circumstances are right, we might find a hefty increase in deductions for you with the two-car strategy. If this strategy works for you, you don’t have to drive one mile farther. You don’t have to...

You can reap major tax savings with the heavy vehicle and home-office combo. The heavy vehicle produces quick deductions. The home office that qualifies as a principal office eliminates commuting miles, and such an elimination can dramatically increase your business-use percentage of vehicles. For example, say you...

The tax law contains no reasonableness test for mileage. In fact, tax code Section 274 specifically discards the reasonableness standard and puts in its place strict substantiation rules. We recommend that you keep a mileage log for at least three consecutive months to prove your business-miles percentage....

Before the Tax Cuts and Jobs Act (TCJA), your purchase of the vehicle you were leasing did not qualify for either Section 179 expensing or bonus depreciation. But times have changed. The TCJA made two changes that mean 100 percent bonus depreciation is available on the vehicle...