Strategic Tax Articles
Welcome to the Philadelphia CPA insights blog, brought to you by Mark S. Fineberg CPA. Every time a new tax ruling, pronouncement, or tax change occurs, stop by this blog to learn more. Here you can find and explore the most advanced legal, ethical, and moral tax saving strategies allowed by the U.S. Tax Code. Enjoy.
Renting Your Bedroom Tax Rules
When you rent a bedroom or two or 20, you first examine Section 280A of the tax code to determine whether your bedroom rental is: tax-free because your rentals were for fewer than 15 days during the tax year. ... (continued)
How to Save For College Tuition
College is expensive. Data for the 2019–2020 academic year indicates that the average cost of tuition, fees, room, and board was $30,500. Tax law has provisions to help you cover the costs, including Coverdell, Section 529 savings, and Section 529 tuition plans. Contribute to ... (continued)
The Dreaded NIIT Tax & How to Avoid
NIIT Overview The NIIT is a 3.8 percent tax that applies if your modified adjusted gross income (MAGI) exceeds $200,000 (single filers), $250,000 (married, filing jointly), or $125,000 (married, filing separately). It targets the lesser of your net investment income or the amount your MAGI ... (continued)
FinCEN New Filing Rules
For existing businesses, the Corporate Transparency Act (CTA) goes into effect on January 1, 2024, and imposes a brand-new federal filing requirement on most corporations, limited liability companies, and limited partnerships and on certain other business entities. No later than December 31, 2024, all non-exempt ... (continued)
2023 Electric Vehicle Credits
There’s good and bad news if you’re in the market for an electric or plug-in hybrid electric vehicle. The good news is that the newly enacted Inflation Reduction Act includes a wholly revamped tax credit for electric vehicles that starts in 2023 and continues ... (continued)
Need More Tax Deductions in 2023-Please Read!!
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 ... (continued)
The Dreaded Self-Employment Tax
If you own an unincorporated business, you likely pay at least three different federal taxes. In addition to federal income taxes, you must pay Social Security and Medicare taxes, also called the self-employment tax. Self-employment taxes are substantial! Indeed, many business owners pay more ... (continued)
More on Travel Expenses
Here’s some crucial information on how to document expenses during business travel. Corporation or proprietorship? If you operate as a corporation, the corporation should reimburse you for the travel expenses or pay for them directly. Remember, you can’t deduct employee business expenses on Form 1040 ... (continued)
A Brilliant Tax Strategy for Paying Your Children
The hire-your-child strategy works best for the Schedule C proprietorship because in this entity structure, the tax code exempts both the child and the proprietorship from payroll taxes. Corporate tax entities do not enjoy this tax benefit. However, there is a strategy to avoid payroll ... (continued)
Hiring Your Children-The Basics
You can pay your child to work in your business and get paid for paying your child. The basic mechanics of this are (a) you deduct the wages and (b) your child pays zero or very little in income taxes. The three points below ... (continued)
Solo 401K--The Maximum Tax Reduction Strategy!
Have you procrastinated about setting up a tax-advantaged retirement plan for your small business? If the answer is yes, you are not alone---This is an update from a prior Blog. You are paying income taxes that could easily be avoided. Therefore, consider setting up ... (continued)
Year-End Tax Planning Ideas For Business
The purpose of this article is to reveal how you can get the IRS to owe you money. Of course, the IRS will not likely cut you a check for this money (although in the right circumstances, that will happen), but you’ll realize the cash ... (continued)
Year-End Medical Business Strategies
When you have 49 or fewer employees, most medical plan tax rules are straightforward. Here are six opportunities for you to consider: If you have not claimed the federal tax credits equal to 100 percent of the required (2020) and ... (continued)
Year-End Considerations for Existing Vehicles
Wow, how time flies! Yes, December 31 is just around the corner. That’s your last day to find tax deductions available from your existing business and personal (yes, personal) vehicles that you can use to cut your 2023 taxes. But don’t wait. Get on ... (continued)
Year-End Retirement Plan Considerations
The clock continues to tick. Your retirement is one year closer. You have time before December 31 to take steps that will help you fund the retirement you desire. Here are five things to consider. 1. Establish Your 2023 Retirement Plan First, a question: Do you have ... (continued)
New More 2023 Tax Deductions??
Here’s an easy question: Do you need more 2022 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 ... (continued)
Latest Details on the ERC from the IRS
Here’s a brief review of the significant changes and updates related to the Employee Retention Credit (ERC). Background and Evolution Originally established under the CARES Act in March 2020, the ERC has experienced numerous transformations. Initially, businesses had to choose between claiming the ERC and taking ... (continued)
Converting Personal Vehicle to Business Use-Important Details!
If you can convert a personal vehicle to business use, you likely can increase your tax benefits—and do that without spending any money or driving another business mile. Here’s an example: Once Mel and Sharpe, his wife, started using both cars, they had 73.7 ... (continued)
Travel Tax Rules You Must Know!
Say you are going to travel from your home in Washington, D.C., to San Francisco. Will the tax law allow you to travel to San Francisco by car, train, plane, or boat, your choice? Answer. Yes. But special rules apply. You need to know these rules ... (continued)
Tax Free Rental Income-Must Read!!
The Augusta rule gets its name from the Masters Golf Tournament, where some members and others who live in the area receive tax-free rent by renting their homes for a week or two. You don’t have to live in Augusta to benefit from this ... (continued)