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
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)
Personal & Rental Use of Your Vacation Home-Know This!
When you use a home for both rental and personal use, regardless of that home’s location at the beach or in the city, you run into the tax code’s vacation home rules that make that home either a residence or a rental property. It’s ... (continued)
Depreciation of Residential VS Commercial Property
When you own rental property, depreciation is your best friend. One reason depreciation is so valuable is that, unlike deductible rental property expenses such as interest and maintenance, you get to claim depreciation year after year without having to pay anything beyond your original ... (continued)
Facts You Should Know About the Third Economic Impact Payment For Your 2021 Tax Filing
The third round of Economic Impact Payments was authorized by the American Rescue Plan Act of 2021 as an advance payment of the tax year 2021 Recovery Rebate Credit.The IRS started sending the third Economic Impact Payments to eligible individuals in March 2021 and ... (continued)
Defining Travel & Personal Days
When you travel to a business location where you spend the night, you are in travel status. But will the tax rules make this a business or personal night? The rules also affect your costs during the day. When you have an overnight business travel ... (continued)
No 1099's-No Tax Deduction?
Imagine this: you didn’t issue Form 1099s to your contractors. Now, the IRS is auditing your tax return, and the auditor claims you lose your deductions because you didn’t issue the Form 1099s. Is this correct? No. IRS auditors often make this claim, but they ... (continued)
Child Tax Credit for 2021-This is HUGE!!
For the 2021 tax year only, the American Rescue Plan Act of 2021 (ARPA) makes big, taxpayer-friendly changes to the federal income tax child tax credit (CTC). Here’s what you need to know, starting with some necessary background information. CTC Basics For 2018-2020 and 2022-2025, the ... (continued)
6 Tax Credits for the Sole Proprietor
Obtaining a tax credit is the next best thing to paying no taxes at all. The tax code contains over 30 non-refundable tax credits for businesses. These are part of the general business tax credit and are claimed on IRS Form 3800, General Business ... (continued)
Analysis-Catch-Up Contribution to Your Retirement Plan?
After reaching age 50, you can make additional “catch-up” contributions to certain types of tax-advantaged retirement accounts. For the 2021 tax year, this opportunity is available if you’ll be age 50 or older on Friday, December 31, 2021. Specifically, with an employer-sponsored 401(k), 403(b), 457, ... (continued)
Little Known Law Can Reduce the Excludable Gain on Your Residence
Once upon a time, you could convert a rental property or vacation home into your principal residence, occupy it for at least two years, sell it, and take full advantage of the home sale gain exclusion privilege of $250,000 for unmarried individuals or $500,000 ... (continued)
Say Goodbye to the Employer Tax Credit (ERC)
Say goodbye to the employee retention credit (ERC) for the fourth quarter. Lawmakers giveth, and lawmakers taketh away. In this case, what lawmakers did is pitiful. It’s like magic: now you see it, now you don’t. On March 11, 2021, the American Rescue Plan Act of ... (continued)
Tax Credits Still Available for your Sole Proprietorship
If you hire an employee for your Schedule C business, you can qualify for several valuable tax credits. Each credit is different, and certain limitations apply to all or most employer tax credits. Remember, tax credits are the best. They beat deductions. Note the difference ... (continued)
Partnership Treating of Unreimbursed Expenses/ 1099 Contractor-Interesting!
When the individual production activity of a partner is outside his or her capacity as a member of the partnership, the partnership has two choices: Allocate the production income to the partner, and have the partner treat the expenses ... (continued)
Roth IRA After TCJA- The Backdoor is Still Open
As you likely know, the Roth IRA is a terrific way to grow your wealth with a minimum tax downside because you pay the taxes up front and then, with the proper holding period, pay no taxes after that. But if you earn too much, ... (continued)
Stock Portfolio Year End Tax Strategies
When you take advantage of the tax code’s offset game, your stock market portfolio can represent a little gold mine of opportunities to reduce your 2021 income taxes. The tax code contains the basic rules for this game, and once you know the rules, ... (continued)
Last Minute Medical Deductions/ Credits for Your Business
All small-business owners with one to 49 employees should have a medical plan for their business. Sure, it’s true that with 49 or fewer employees, the tax law does not require you to have a plan, but you should. Most of the tax rules that apply ... (continued)
Vaccines & Tax Credits--Interesting
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)
Existing Vehicle Last Minute 2021 Business Deductions
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 2021 taxes. But don’t wait. Get on ... (continued)
Retirement Planning for Year-End 2021
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 four things to consider. 1. Establish Your 2021 Retirement Plan First, a question: As you read ... (continued)