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.
Recent Insights
Cost Segregation-A Closer Look!
One significant tax benefit of owning residential rental property or non-residential commercial or investment property is depreciation—a deduction you get without spending any additional money. But regular depreciation for real property is slow. Residential rental property is depreciated over 27.5 years and non-residential property over ... (continued)
15 Exceptions to Early Withdrawal IRS Penalty
Early withdrawals from a traditional IRA before age 59 1/2 generally incur a 10 percent penalty tax on the taxable portion of the withdrawal. There are several exceptions to this rule that can help you avoid the penalty under specific circumstances. Below, I have ... (continued)
Self Employed In 2021-Must Read forHuge Potential COVID Credit
Were you self-employed during 2021? If so, there is a good chance that you could have qualified for COVID-19 sick and family leave credits worth as much as $32,220. If you’re like many self-employed individuals or partners, you probably never heard about these tax credits. ... (continued)
Partnership Entity No Longer Needed-Read This!!
As you consider winding down your partnership, here’s a concise overview of what you might expect under three typical scenarios of partnership dissolution. Scenario 1: One Partner Buys Out the Others If one partner buys out the others and continues the business, the exiting partners will ... (continued)
Make Your Vacation Tax Deductible!
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 ... (continued)
Tax-Free Supper Meals Revisited
Tax law often discriminates against company owners, granting them no or fewer fringe benefits. But you, the owner, are not discriminated against when it comes to supper money. It works like this: The supper money fringe benefit is for defined employees. ... (continued)
IRS Tax Audit Targets-Must Read!
Have you heard about the enormous tax savings you can reap by investing in a Maltese individual retirement arrangement or utilizing Puerto Rican captive insurance for your business? Before you invest your hard-earned money in these or other highly promoted tax schemes, you should ... (continued)
Estimated Tax Penalty Revisited
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 ... (continued)
Corporate Transparency ACT (CTA)-Some Keen Insights
The Corporate Transparency Act (CTA) is upon us. It takes effect on January 1, 2024, and imposes a new federal filing requirement for most corporations, limited liability companies (LLCs), and other business entities. Corporations, LLCs, and other entities subject to the CTA are called ... (continued)
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)