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

Alternatives to Selling Your Appreciated Residence to Your Adult Child

With today’s home prices and the crazy real estate market, it’s likely difficult for your children to buy a home. And it’s conceivable that you are ready to move on from your existing home. If this is true, consider the three options below. Option 1: ... (continued)

There's Relief from Improperly Classifying Workers as Independent Contractors

The IRS Classification Settlement Program (CSP) offers a chance to settle your employment tax debt due to worker misclassification, if you do not qualify for Section 530 relief. CSP agreements typically result in a substantial reduction of assessed employment taxes, especially if you misclassified ... (continued)

Legal Way to Deduct Home Office for Your Corporation

Here\'s the 2 boilerplate explanations IRS agents use to deny home office deductions:1. IRS has disallowed your deductions for office-in-the-home expense because you have not established that is was for the convenience of your employer. Voluntary, vocational, or incidental use of part of your ... (continued)

$75 Receipt Rule for Business Vehicles

The $75 rule is contained in IRS Regulaton 1.274-5(c)(2)(iii), and the best explanation of what this rule says is found in IRS Notice 95-50, which states that the $75 rule applies to travel, entertainment, gifts, and listed property. IRC Section 280(f)(d)(4) states that listed ... (continued)

Selling Your Vacation Home? Here's the Tax Consequences

The tax-code-defined vacation home rules come into play when you have both rental and personal use of a home. Thus, you can have tax-code-defined vacation homes in the city, in the suburbs, and in recreation areas. If you have no combined rental and personal use ... (continued)

Now May Be the Time to Transfer Your Residence to Your Children

Misclassification of Independent Contractors- Please Read--- IRS Relief

The IRS Classification Settlement Program (CSP) offers a chance to settle your employment tax debt due to worker misclassification if you do not qualify for Section 530 relief. CSP agreements typically result in a substantial reduction of assessed employment taxes, especially if you misclassified ... (continued)

QSEHRA-For Small Business Health Insurance Plans-Still Works!

Finally, the health insurance rules that apply to small businesses make more sense and allow some benefits. Beginning January 1, 2017, you can install a new qualified small employer health reimbursement arrangement (QSEHRA) and start helping your employees pay for their health insurance and other ... (continued)

S Corporation & Health Insurance Rules-Important!

You and your S corporation continue to enjoy good news in 2018 when it comes to your health insurance. And that good news also applies to your 2017 taxes. You first have to thank the 21st Century Cures Act for: Reinstating and extending ... (continued)

Own More than 1 Business-Please Read This

When you own more than one business, you need to consider the grouping rules that apply for passive-loss purposes. Should one of your businesses lose money, you may not deduct the losses from that business during the current tax year unless you materially participate in the ... (continued)

Here's How to Mail Documents to the IRS

You have heard the horror stories about mail sent to the IRS that remains unanswered for months. Reportedly, the IRS has mountains of unanswered mail pieces in storage trailers, waiting for IRS employees to process them. Because the understaffed IRS is having so much trouble ... (continued)

Deducting Mortgage Interest When Your Name is NOT on Deed

Tax law has an amazing break for unconventional homeowners. You can deduct your mortgage interest payments even when the deed to the house and the mortgage are in someone else’s name. Here’s what happened to Sue Davis. Sue could not personally qualify for a home loan. Her ... (continued)

Small Business-Read This!!

Don’t let this happen to you. Here’s what happened to Mr. Kazmi. First, a little background. Urgent Care Center Inc., an Illinois corporation, employed Mr. Kazmi as a part-time hourly bookkeeper. He had no ownership interest in Urgent Care. He was not an officer of Urgent Care. ... (continued)

Health Savings Accounts (HSA's)-Ultimate Health Plan?

It isn’t easy to make predictions, especially about the future. But there is one prediction we’re confident in making: you will have substantial out-of-pocket expenses for health care after you retire. Personal finance experts estimate that an average retired couple age 65 will need ... (continued)

How to Avoid the Self-Rental Trap

Let’s say you own the building. Now, let’s say that you rent this building to your business. With no tax planning, you have a self-rental, and that makes rental income from this building nonpassive, meaning that it cannot offset any ... (continued)

Precious Metals--Tax Implications!

These days, some IRA owners and investors may be worried about being overexposed to equities. That could be you. But the safest fixed income investments (CDs, Treasuries, and money-market funds) are still paying microscopic interest rates. For example, when this was written, the 10-year Treasury ... (continued)

Q & A on Health Insurance Premiums & Medicare

Taxable income has consequences. It causes income taxes.And it causes you to pay either more or less for Medicare.It boils down to this: there’s always a need to reduce your taxable income. The monthly premium for the current year depends on your modified adjusted gross income ... (continued)

Independent Contractor Misclassification-Section 530 To The Rescue!

As a business owner, you are obligated to collect and remit payroll taxes for your employees. But you are not required to collect and remit payroll taxes for independent contractors. That’s why it’s important to correctly classify workers as either employees or independent contractors. But ... (continued)

Is Your Sideline Business Really a Hobby?

Do you have a sideline activity that you think of as a business? From this sideline activity, are you claiming tax losses on your Form 1040? Will the IRS consider your sideline a business and allow your loss deductions? The IRS likes to claim that money-losing ... (continued)

Tax Strategy for College Tuition Savings

The tax code says, “The term ‘net earnings from self-employment’ means the gross income derived by an individual from any trade or business carried on by such individual \" The Supreme Court ruled that to be in a trade or business, you need to ... (continued)