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

Here's How to Maximize Your Business Mileage Deductions!

I absolutely, positively don’t like commuting mileage. You should dislike it, too. It’s personal. It’s not deductible. But with knowledge, it’s avoidable. Let’s eliminate commuting and make those trips from your home to your office deductible. The law gives you two ways to eliminate commuting from your ... (continued)

Why S Corporation to Reduce Self Employment Tax-Legally!!

I know you report your business on Schedule C of your Form 1040. Have you noticed that the self-employment tax significantly drains your cash? The S corporation may plug a good chunk of that leak because only the W-2 wages that the S corporation ... (continued)

When Your Income Subject to 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 not insubstantial. Indeed, many business owners pay ... (continued)

You Are Still Able to Claim the Emplyee Retention Credit (ERC)-Please Read ON!

With the Consolidated Appropriations Act, 2021, millions of small-business owners like you still qualify for the employee retention credit (ERC), thanks to three big changes: You can now obtain the ERC and the Paycheck Protection Program loan, but not ... (continued)

90 Day Mileage Log Rule-Important!

Often in an IRS audit, the examiner will ask for your mileage log at the beginning of the audit. If you do not have a mileage log, you are in what former presidential candidate Ross Perot called deep doo-doo. Think about it. If you don’t ... (continued)

The Unpardonable Sin in an IRS Audit

What is the unpardonable sin in an IRS audit? Suppose you just received that lovely letter from the IRS telling you that you are the subject of an IRS audit. What one record receives special attention? What one record can create a nightmare for you? What ... (continued)

How to Nail Down Your Travel Deductions

As you likely know by now, your travel meals continue under tax reform as tax-deductible meals subject to the 50 percent cut. And tax reform did not change the rules that apply to your other travel expense deductions. One beauty of being in business for yourself ... (continued)

Read This BEFORE You Answer The Cryto Question on Your Tax Return

Cryptocurrency such as bitcoin is all the rage these days. Crypto is not legal money. It is property, similar to gold. Like gold, its use can result in taxable income. The IRS is concerned that you and millions of Americans are using crypto without paying ... (continued)

Watch Out For This Coming to Your Business-Financial Crimes Enforcement Network

Do you own or advise a corporation, limited liability company (LLC), limited partnership, limited liability partnership, limited liability limited partnership, or business trust? Or are you planning to form one of these entities? If so, be alert. There’s a new federal filing requirement coming. Back ... (continued)

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)