2014 Tax Insights

Here’s a 2014 Business Vehicle Strategy That You Probably Were Not Aware Of

Did you buy a 2014 business vehicle in your personal name? To protect your Corporation’s deductions, read this briefing. Even though you may have purchased one or more vehicles in your name, you can still substantially reduce your income taxes with the legal utilization ... (continued)

IRC Section 179 Rules Extended!!

On December 16, 2014, Congress passed the “Tax Increase Prevention Act of 2014”, that the President signed into law on December 19, 2014. The Act extends through 2014 a number of depreciation and other expensing provisions for businesses that had expired at the ... (continued)

Asset Protection for Your Residence

For most people their home is one of their most valuable assets. It can truly be one’s castle, but is also one of the most vulnerable assets to creditors. The goal is to protect this asset at all costs. However, as I will ... (continued)

How to Maximze Your 401(k) Deductions-S Corporations

A  Solo 401(k) plan is an excellent retirement and tax planning tool. To facilitate your understanding of how S Corporation income can be contributed to a 401(k) plan, you need to understand the following three basic rules. Only W-2 Salary can be used as ... (continued)

This is How To Reduce Taxes for S Corporation Owners

If you are operating as an S Corporation, your salary is a key element to an excellent tax reduction strategy. The lower your salary, the more you save in payroll taxes. However, if you set your salary too low, the IRS may, upon audit, step ... (continued)

You Need to Know These 3 Tips When Buying a Business

Every buyer of a small business needs to consider the following 3 issues when purchasing a business” Buy Assets and Not Liabilities. “Asset Purchases” are recommended whereby the buyer acquires the assets of the business only. The assets include goodwill, name, equipment, supplies, inventory, ... (continued)

Don’t Ignore the Tax Laws on Receipts

While the tax law may not always require receipts, the tax law always requires proof. If you do not have receipts, you have to prove your expenses in some other way.-which may mean reconstructing your business deductions several years after the fact. You ... (continued)

Tax Strategies for Business-Long Term Care Insurance

Strategy for C Corporation Have your C Corporation provide company-paid qualified long-tern care coverage as an employee benefit for selected employees, such as yourself. This coverage is eligible for the same tax-advantaged treatment as a regular company-paid health insurance program. The result is the ... (continued)

Borrowing From Employee’s Withholding Taxes-A Big Mistake!

Borrowing payroll tax withholding funds is stealing. Why? It’s not yours. When you or your corporation withhold money from the employees, you individually act in a fiduciary capacity and have the responsibility to remit that money to the government timely. Your willful failure to ... (continued)

10 Of Your Most Important Tax Documents/Recordkeeping Guidelines

1. Tax Returns should be retained for 7 years after the due date or filed, whichever is later 2. Supporting tax documents such as receipts, expense loge, sales records) should be retained for a minimum of 3 years. 3. Real estate documents should be retained ... (continued)

Another Big Advantage Of Your Home Office-Commuting Expenses

You may deduct home office expenses if you meet these tests: Principal place of business. If you use your home office, exclusively and on a regular basis, as your principal place of business. Furthermore, the home office must satisfy either the “management and administrative” ... (continued)

How to Write Off 100% of Entertainment Expenses

Most entertainment expenses are 50% deductible. However, the IRS allows you to write off  100% of entertainment expenses, if you are using it to grow your business and you follow the rules. The IRS uses the term “associated entertainment”, but its really fun. That’s right, ... (continued)

S Corporation Health Insurance-Subject to Payroll Taxes?

If you want to deduct the cost of your health insurance when you operate your business as an S Corporation, you have to pay for the health insurance through the corporation. The corporation must either pay for the insurance directly or reimburse you ... (continued)

How to Properly Structure Shareholder Loans to C Corporations

Shareholders often loan money to their corporation in order to keep the business operating. There are rules and regulations in the Internal Revenue Code (IRC) that must be adhered to in order for loans to be treated as such, and not an equity ... (continued)

Internal Revenue Code Section 274- A Business Owner Must Read

If your a business owner, you need to be familiar with Internal Revenue Code Section 274 (IRC 274), IRC 274 is the substantiation regulation. All that means is that certain deductions that are claimed on a business tax return, must be supported by ... (continued)

5 Ways to Maximize Business Entertainment Deductions

For business owners, entertaining clients is a time-honored tradition. However, you must be extremely careful, because it’s a sensitive area with the IRS. Here’s 5 ways to maximize your business meal and entertainment deductions. Get down to business. Any entertaining must be directly related to ... (continued)

The Alternative Minimum Tax-The Worst Tax of All!

The Alternative Minimum Tax (AMT) is a tax on your deductions. Yes, you read that right. Its an additional tax that is calculated and added to the regular tax computed. The AMT stealth tax works by eliminating or reducing taxpayer’s deductions that one gets ... (continued)

Here’s Some Ways to Negate the Kiddie Tax

The Kiddie Tax was created by lawmakers to prevent taxpayers from shifting income to their children to take advantage of the child’s lower tax bracket. This tax can arise also without income shifting as well. Does your child have investment accounts that generate income? ... (continued)

Potential Tax Credit for Summer Camp for Your Children

There are many benefits to sending your children to summer camp, but did you know the IRS will give you a tax credit for the cost and effort. If your child goes to day camp this summer while you and your spouse work, the ... (continued)

What is a Self Directed IRA?

A self directed IRA is an individual retirement account (IRA)–classified as a Roth, Traditional, SEP, Inherited , or SIMPLE. Self directed allows the custodian to invest these funds into any investment allowed by law, typically: Real Estate Promissory Notes Precious Metals Private Company Stock The typical reaction I ... (continued)

What Employee Fringe Benefits Are Tax-Free & Taxable

An employee fringe benefit is a form of pay other than money for the performance of services by employees. Any fringe benefit provided to an employee is taxable income for that person unless the tax law specifically excludes it from taxation. Taxable fringe ... (continued)

Cooke Island Trusts: Prudent Planning Tool

As a Certified Asset Protection Planner, I am aware that the use of a Cooke Island Irrevocable Trust is a powerful and legitimate planning tool for wealthy business owners, real estate developers, and physicians throughout the world. The Cooke Islands is a popular ... (continued)

Corporate Loans Are A Valuable Tool–Here’s How To Properly Structure Them

C Corporations owners have a double-taxation problem. Here’s why: Suppose your C Corporation has $10,000 of profits after paying your salary and other expenses. To move those funds to your personal account, you have to: pay the corporate tax on the income, and pay a dividend ... (continued)

Here Are the Major Tax Law Changes for 2014

Lawmakers decided to allow dozens of tax breaks to expire after 2013, and most of them will not be retroactively revived until late 2014. They include the R & D tax credit, the deduction for state sales tax in lieu of income tax, ... (continued)

Roth IRAs for Children: What You Need To Know

Roth IRAs can be established and owned by anyone who has earned income and that, of course, includes children. As many savvy investors know, Roth IRAs offer the best tax treatment for investment income in the tax code. I have many clients who ... (continued)

8 Hot IRS Audit Areas for Small Business

The IRS continually analyzes compliance levels for entities by conducting hundreds of compliance projects and initiatives each year. When it comes to compliance, the IRS has increasingly focused on small business under-reporting, that is responsible for 84% of the 450 billion tax gap. ... (continued)

Business Protection–Initial Considerations

The first consideration is structuring a sound asset protection plan is deciding which form of entity to operate your business. The possible choices include: General & limited Partnerships Sole Proprietorships Limited Liability Companies Corporations Trusts Each has different legal characteristics, tax attributes, an asset protection features. The right combination ... (continued)

U.S. Government Models Gambling Tax Law After Vegas Casinos–Very Interesting!!

You probably know people who believe they can beat the odds in Vegas. You should be skeptical. According to statistics from the University of Nevada, Las Vegas (UNLV) Center for Gambling Research, your gambling friends are almost certain to lose over the long ... (continued)

Ways to Deduct Meals With Your Spouse

The ability to deduct meals with your spouse is simply a question of fact. Were the meals ordinary and necessary expenses for your business? Did you keep the business meals records as required by law? The IRS is highly skeptical when it comes to ... (continued)

Tax Deductions for Personal Car Used for S Corporation Business

Is the vehicle you use for your S corporation business titled in your name? Does your S corporation pay some or all all the vehicle expenses? If this is true, then you are in murky and mucky waters of a tax law swamp. Start With This You ... (continued)

Asset Protection for Your Residence

For most of us, our home is one of our most valuable assets, as well as most vulnerable assets to creditors. Here are some proven ways to protect your home: Homestead Exemption–This is a statutory exemption available in most states to protect a certain amount ... (continued)

10 Crucial Steps to Avoid An IRS Audit

An IRS Audit is expensive, time consuming, and emotionally draining for starters. Its an experience you would like to avoid. Here are the 10 ways to avoid an IRS Audit: Keep Receipts and Invoices–These documents have really nothing to do with avoiding an audit, but ... (continued)

How Long Do You Have To Keep Your Tax Records

The “statue of limitations” refers to the period of time when you and the IRS can make changes to your tax returns. Most taxpayers think of the limitation periods as the time frames during which the IRS can audit their returns. The periods for ... (continued)

American Opportunity Tax Credit

09 Apr American Opportunity Tax Credit Posted at 13:49h Accounting Blog by markadmin ... (continued)

Lifetime Learning Credit in 2014

Lifetime Learning Credit is a tax credit for any person who takes college classes. It provides a tax credit of 20% of tuition expenses, with a maximum of $2000 in tax credits on the first $10,000 of college tuition expenses. It applies to ... (continued)

Piercing The Corporate Veil-Important Information

One of the primary advantages of incorporating a business is that the business owners are not held personally liable for the debts or liabilities of the entity (as used herein, entities include corporations, limited liability companies, and limited partnerships. In other words, creditors can ... (continued)

What If You Are Unable To Pay Your Upcoming Taxes

First and most importantly, don’t let your inability to pay your tax liability in full keep you from filing your tax return properly and on time.  If you don’t file your tax return, it only makes things worse. If you can, include as much ... (continued)

Paying Your Taxes By Credit or Debit Card

No matter how you file your income tax return-by mailing a paper copy or electronically-you can pay your taxes using a major credit card or debit card online. Individuals can make these payments 24 hours a day, seven days a week, using certain ... (continued)

Myth: Home-Office Deduction is a Red Flag for IRS Audit

If you put “home office” and “red flag” in Google with quotes you find 157,000 results!! The interesting point is there are many articles that say claiming home-office as a tax deduction is a “red flag” for an IRS audit; however, there are ... (continued)

What is Internal Revenue Code (IRC) 274?

If you are a business owner, you need to be familiar with IRC 274. This very important code section is the “substantiation requirement,” meaning certain deductions that you claim on your business tax returns MUST be supported with appropriate documentation. For example, if you ... (continued)

The Right Way to Receive Reimbursements From Your Corporation

Keep these basic rules when you operate your business as a Corporation: You are an employee of the corporation The corporation is a separate legal entity The corporation is the business You can incur business expenses on behalf of the corporation The corporation may reimburse you for business ... (continued)

HSA Solution to Obama-Care

Have the health care reforms left you perplexed? Perhaps you have the feeling that your business can no longer afford to help your employees (or yourself) with health care. You will be glad to hear that is not so! Consider a health savings account (HSA). ... (continued)

Tax Ramifications Of Being Married

This article will explore some of the advantages and disadvantages of being married for tax purposes. Married, Filing Jointly You hear it all the time. Lawmakers allow married people to use the most-favored tax-rate table: the highly touted Table 1, Married Individuals Filing Joint Returns. True, ... (continued)

Realizing Tax Benefits of a Loss Deduction

You are going to replace your old business vehicle with a new vehicle before the end of the year. But you have this nagging fear that the old business vehicle has some tax benefits that you need to know about before doing anything with ... (continued)

Do You Need Health Insurance if You Have Medicare or Medicaid?

Under health care reform, otherwise known as the Affordable Care Act or Obama-Care, uninsured Americans will be required to have health insurance by March 31, 2014 or face a tax penalty. There will be an option to shop for and purchase health insurance through ... (continued)

What Are Some Tax Tips for Deducting Charitable Contributions?

Charitable contributions made to qualified organizations may help lower your tax bill.  Here are some tips to ensure your contributions deductions: If your goal is a legitimate tax deduction, then you must be giving to a qualified organization.  Also, you cannot deduct contributions made ... (continued)

What Are The Benefits Of The Home Office Deduction

Would like an extra $20,000 in your bank account every 5 years? On average, that is what the home office deduction yields to our clients. This article will explain the benefits of this most often overlooked deduction, and how to document this valuable ... (continued)

5 Ways Obama-Care Will Effect Your Finances And Taxes

Even if you’ve heard about health care reform, you may be confused about how the law impacts you, your finances, and taxes. Whether you already have health insurance or not, here are the top five things you should know. The uninsured will have affordable ... (continued)

Countdown to Obama-Care: A Consumer’s Toolbox

Many insurance companies and health websites provide information on the law. The Kaiser Family Foundation, which does not sell health insurance or receive compensation for its recommendations, is widely recognized as having the best set of Obama-Care tools. Even federal government experts within ... (continued)

What Are The 2013 Tax Law Changes?

Tax Rate Changes Your deductions are worth more in 2013 because of the Fiscal Cliff legislation.  Here are the increases in tax rates for 2013: 1.  Top tax rate increases from 35 to 39.6 percent on taxable income over $400,000 ($450,000 for joint returns). 2.  Increase ... (continued)

What are the benefits and advantages of a Section 105 Medical Reimbursement Plan?

Section 105 Medical Reimbursement Plans provide small business owners the opportunity to offer tax-free benefits without the costs related to group health insurance. This article provides a brief overview of this most often overlooked tax reduction strategy. Tax Law The tax law states that a ... (continued)

Are You Cheating Yourself Of Tax-Deductible Entertainment?

If you spend $5000 on business entertainment during the year, how much can you deduct? If you said 50%, you may be correct. How much do you report to your tax preparer? If you said “$2500”, you are likely wrong. Why? Because tax preparers ususally make the ... (continued)

Tax-Free Rental of Home to Your Corporation

How would like to get a tax deduction for your C or S Corporation, and NOT have to include the income on your personal tax return? Here’s a legal tax strategy to accomplish just that. Under IRC Section 280A you can rent your entire home to ... (continued)

IRS Victory - Section 105 Medical Reimbursement Plan - Must Read

We have good news. Milo and Sharlyn Shellito won their case thanks to the merits of their case and the good work of their lawyer, Reggie L. Wegner. Interestingly, the court did not publish a revised or new opinion showing that the Shellitos won. ... (continued)

The Best Way to Claim a Home Office Tax Deduction for the Owner of a Corporation

When you operate your business as a corporation, knowledge is critical to claiming the best tax deduction for an office in the home. Technically, the owner of a corporation can claim tax deductions for a home office in one of three ways, two of which ... (continued)

2011 Tax Law Changes

TAX CHANGES THAT MAY AFFECT YOU IN 2011 There are a host of tax changes that started in 2011 as well as unanticipated extensions of some tax breaks. The first change was a non-change. All of the tax brackets were scheduled to increase. However, ... (continued)