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
Self Employed COVID 19 Benefits Revisited
As you likely know, in times of economic dislocation such as the COVID-19 pandemic, the self-employed get no special government help. For example, you generally do not receive benefits that employees get, such as unemployment and paid sick leave. But this time it’s different. Because ... (continued)
529 Withdrawals-What You Need to Know!
The big advantage of 529 plans is that qualified withdrawals are always federal-income-tax-free—and usually state-income-tax-free too. What you may not know is that not all 529 withdrawals are tax-free qualified withdrawals, even in years when you have heavy college costs. Here are six important points ... (continued)
Travel Deduction & Tax-Home Rule
When you travel out of town overnight, you need to know the tax-home rule. The IRS defines your tax home, and it’s not necessarily in the same town where you have your personal residence. If you have more than one business location, one of the ... (continued)
More on Depreciation
Are you thinking about buying personal property (such as a car, a computer, or other equipment) or real property (such as a building)? If you use the property for personal purposes, it’s not deductible. But if you use it in a business, you can deduct ... (continued)
Independent Contractors Revisited
Millions of American businesses hire independent contractors to perform all types of services. And millions of American workers prefer to work as contractors rather than employees. Indeed, due to the COVID-19 pandemic, it’s likely that more people than ever want the freedom that comes ... (continued)
How Are Roth IRA Withdrawals Taxed
Some withdrawals are taxable. Even worse, some can be socked with a 10 percent early withdrawal penalty tax, and this can happen even when there’s no income tax hit. Any withdrawals from any of your Roth accounts are federal-income-tax-free qualified withdrawals if you, as ... (continued)
The New Tax Bill-What to Watch
Work in Congress on the new tax bill is progressing. The Ways & Means Committee of the House of Representatives has unveiled a detailed proposal to raise taxes by more than 2 Trillion to pay for proposed spending bills that are under negotiation. The ... (continued)
NUA- A Tax Strategy to Consider if You Own Company Stock
Do you own any of your employer’s company stock inside your employer’s 401(k), ESOP, profit sharing plan, or other retirement plan? Has it gone up in value since you got it? If so, you should start thinking about what to do with the stock ... (continued)
More on Tax Audits
As a business owner, you are in partnership with the IRS, like it or not. You share your net profits with the IRS according to your partnership agreement (known to you as the Internal Revenue Code). To make sure you are sharing fairly, the IRS can ... (continued)
Sale Of Principal Residence-New Rules!!
Here’s good news. IRS regulations allow you to claim a prorated (reduced) gain exclusion—a percentage of the $250,000 or $500,000 exclusion in select circumstances. The prorated gain exclusion equals the full $250,000 or $500,000 figure (whichever would otherwise apply) multiplied by a fraction. The numerator ... (continued)
Tax Planning Strategies To Reduce Self Employment Tax
What happens when lawmakers enact a new tax? It starts small. It looks easy. In 1935, the self-employment tax topped out at $60. Those 1935 lawmakers must be twirling in their graves with the new rules for 2021, which levy the following taxes: A self-employment tax of up ... (continued)
Reminder About Keeping GOOD records
As a business owner, you are in partnership with the IRS, like it or not. You share your net profits with the IRS according to your partnership agreement (known to you as the Internal Revenue Code). To make sure you are sharing fairly, the IRS can ... (continued)
Another Sad Story For Not Filing Tax Returns
Here’s a sad story of a dentist who did not file his tax returns. Of course, as you know, the failure to file tax returns often gets the IRS’s attention. In this case, it did, and this dentist suffered accordingly. The IRS used the 1099s ... (continued)
Vaccinated-Check Out These Potential Tax Credits For You & Employees!
As the nation suffers from the ravages of the super-contagious COVID-19 Delta variant, the federal government desperately wants all American workers and their families to get vaccinated. If you have employees, you probably feel the same way. Indeed, more and more employers are implementing vaccine ... (continued)
Meals & Entertainment Chart-0%-50%-100%
Have you missed partying and having business meals with your prospects, customers, and employees? Well, get ready to start again. Soon, COVID-19 will behind us. It could be just a few short months away. To help you get ready, check the table below for what you ... (continued)
Do NOT Embezzle Payroll Tax Withholding From Your Employees-Here's Why!
If you have employees in your business, this story should have your attention. Timothy McCloskey, president and sole shareholder of Brosius, delegated financial responsibility to Kathleen Lawson, his bookkeeper and chief financial officer. Ms. Lawson embezzled more than $800,000 from Brosius and failed to remit ... (continued)
Real Estate Rental Losses-You MUST Have The Proof
If you own rental properties that can provide you tax shelter with their losses and your Form 1040 adjusted gross income is less than $150,000 (without considering rental losses), you need to overcome the tax code passive loss rules. Here are some important points. Keep a ... (continued)
Crytocurrency Taxable Transactions-Beware!
Here’s something to know about cryptocurrencies. Because cryptocurrencies are classified as “property” rather than as securities, the wash-sale rule does not apply if you sell a cryptocurrency holding for a loss and acquire the same cryptocurrency before or after the loss sale. You just have ... (continued)
Three REAL Problems + Costs From Filing Your Taxes Late
Three bad things happen when you file your tax return late. What’s Late? You can extend your tax return and file during the period of extension; that’s not a late-filed return. The late-filed return is filed after the last extension expired. That’s what causes the three bad ... (continued)
Sale of Principal Residence Refresher
The $250,000 ($500,000, if married) home sale gain exclusion break is one of the great tax-saving opportunities. Unmarried homeowners can potentially exclude gains up to $250,000, and married homeowners can potentially exclude up to $500,000. You as the seller need not complete any special tax ... (continued)