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.
Real Estate Investor vs Dealer-Huge Difference!
I have great news! You can have in your real estate portfolio both investor and dealer properties. This distinction is significant for tax purposes. Here’s a snapshot of the potential tax differences: Suppose you profit $90,000 from a property sale: As a dealer, ... (continued)
Tax Relief --A Joke
I hope this letter finds you and your loved ones safe and well. Recent natural calamities in various parts of our nation have caused considerable distress. I want to bring to your attention some crucial tax-related implications and preventive measures you may consider. IRS Tax ... (continued)
Business Meals Revisited
I hope this message finds you well. I am writing to provide valuable insights regarding the tax implications of business meals. As you may already be aware, there is a contradiction in the tax laws regarding personal living expenses, specifically personal meals and business meal ... (continued)
In my continuous effort to provide value, here are some crucial insights into depreciation, particularly regarding business or rental assets. When Does Depreciation Start? Technically, depreciation begins not when you use an asset but when it’s ready and available for its intended purpose. For instance: A ... (continued)
HSA-Why Some Business Prefer These Vehicles
When enacted, the Affordable Care Act (ACA) eliminated most small business health plans that reimbursed individually purchased health insurance. Consequently, many small business owners chose health savings accounts (HSAs) or opted to provide no health coverage at all. As of 2022, over 35 million HSAs ... (continued)
Corporate Advances to Shareholders-Must Read!!
If you operate your business as a C or an S corporation, and if you loan money to the corporation or the corporation loans money to you, you need documentation that the loan is indeed a loan. With the S corporation, the loan that fails ... (continued)
ICHRA A Potential Health Care Solution
The individual coverage health reimbursement arrangement (ICHRA) allows businesses of all sizes, from large corporations to small businesses like yours, to reimburse employees for their personally purchased health insurance expenses. The ICHRA is particularly beneficial for businesses with fewer than 50 employees because they ... (continued)
Understanding "Kiddie Tax"
I wanted to take this opportunity to touch base regarding the federal income tax rules on the “kiddie tax” and its potential impact on your financial strategy for your child(ren). In brief, the kiddie tax was enacted by Congress to prevent parents from passing investment ... (continued)
Home Office Revisited
As an owner of a corporation and an employee within that corporation, you may be eligible for a home-office deduction if: you use the office in your home for the convenience of your employer corporation, you comply ... (continued)
Here's How to Document Your Business Travel Deductions
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)
Mileage Log-A Must to Sunstantiate Your Tax Deduction
I am writing today to bring to your attention a crucial aspect of business tax deductions: mileage logs. In most court cases, taxpayers lose vehicle expense deductions because they cannot present a credible business mileage log. The IRS code forbids deductions for vehicle expenses ... (continued)
Your Cleaning Lady & Tax Consequences
I wanted to offer some insights regarding an important tax aspect related to the cleaning services at your home office. As you have a home office that qualifies for a home-office deduction and you employ a cleaning lady—let’s call her Annie—who maintains both your home ... (continued)
Health Insurance for S Corporation-Update!!
I am writing to update you on the latest developments in 2023 health insurance for S corporation owners. As a more-than-2-percent S corporation owner, you are entitled to some good news when it comes to your health insurance. To ensure that your health insurance deductions ... (continued)
Estate Planning for the Rest of Us
You need an estate plan, regardless of whether or not you are among the ultra-rich. As recent news has shown, even those who have won the lottery or have substantial wealth can fall victim to poor estate planning. While federal estate taxes may not concern ... (continued)
Electric Vehicle Tax Credit Update
The IRS recently issued new guidance on electric vehicles. There are four ways you can potentially benefit from a federal tax credit for an EV you place in service in 2023 or later: Purchase an EV, and claim the ... (continued)
How to Disclose An Aggressive Tax Position
Are you considering a bold tax position that may significantly reduce your taxes? If approved by the IRS, it’s a win. But if disapproved, be prepared to face a considerable tax penalty. The IRS imposes a 20 percent penalty for substantial tax underpayment. For instance, ... (continued)
Rollover Your IRA to a Health Savings Account (HSA)-YES!!
Health Savings Accounts (HSAs) are designed for use alongside high-deductible health plans, assisting you in covering your medical expenses. They can also function as an incredible retirement account due to their triple tax benefit: You can deduct contributions from ... (continued)
Business vs Non-Business Bad Debts-Huge Tax Difference
The current economic climate makes this a good time to focus on bad debt losses. As an individual taxpayer, deducting bad debt losses has always been controversial with the IRS. To claim the deduction, you must first establish that the loss was from a bona ... (continued)
Improper Use of the $75 Day Rule
The $75 rule applies to certain business expenses where you do not need a receipt. But I emphasize that this rule does not apply to all tax deductions. Many taxpayers mistakenly apply the $75 rule to all their tax deductions, which can result in a ... (continued)
Another Potential Tax Free Benefit for Hiring Your Children
If your children work in your business, consider giving them education fringe benefits. Doing this right creates: tax deductions for the business, and tax-free fringe education benefits for the child. You can accomplish this without ... (continued)