2016 Tax Insights

Domestic Service in Private Homes-What You Need to Know

You might not be aware that the “Nanny Tax” is not just limited to nannies. The IRS is stepping up its audits on those with workers in their private homes and its not just because of “nannies”. Here are some of the rules: the tax does ... (continued)

Crucial Tax Planning Still Available for 2016-Please Read This

Do you need a significant tax deduction in 2016, as your income has increased substantially this year? Do you need a replacement business car, SUV, van, or pickup truck? If so, read on… The vehicles that provide the largest possible deductions on your last-minute 2016 purchase ... (continued)

Simple Strategy for 100% Tax-Free Rental Income!

Generally rental income is similar to any other income, its taxable income subject to income tax. However, there is a loophole known by a very few, that allows in the tax law certain amount of tax-free rental income. Yes, tax-free, and not reported on your ... (continued)

3 Strategies to Avoid 1099 Reporting & Penalties

The easiest way to avoid the headaches and potential penalties caused by issuing 1099’s to independent contractors is to structure your activities to minimize the number you have to issue, and prepare in advance if you do have to issue them. Congress makes you ... (continued)

Unpaid Payroll Taxes?-Please Read This

If your business withholds taxes from its employees and does not pay them, your business and possibly yourself are exposed to substantial liabilities. The IRS trust fund recovery penalty can make you personally liable for the unpaid trust fund taxes for your business. Trust ... (continued)

Write-Off for Failed Rental Property Purchase-Yes!!

This article examines a failed rental property purchase and the related tax consequences. Tom Jones lives in Philadelphia, PA and travels to Florida to purchase a rental property. He enters into a contract and that includes a nonrefundable deposit to secure the transaction, and ... (continued)

4 Strategies To Increase Your Cash Flow On Real Estate

If you take the proper tax planning actions in reference to your rental property or office building,  you can put more cash in your pocket with the following 4 tax reductions strategies: Accelerate depreciation on certain components of the building identify repairs allocate less to land retire ... (continued)

Bullet Proof Your Tax Records

Let’s start with this most important statement of fact. All the numbers included in your tax return are your responsibility. You create the numbers, not your accountant or CPA. You are required to have adequate documentation for your tax return. When you sign ... (continued)

Sole Proprietorships-Pros and Cons

The sole proprietorship (SP) is the simplest form of doing business. No tax ID# or Employer Federal ID# is required. All of your income and expenses for your business are reported on Schedule C of your Form 1040 Tax Return-therefore, no extra return ... (continued)

Combine Personal Pleasure with Business Travel

Let’s start with the definition of travel according to the IRS–you are away from home overnight or for a period time sufficient to require sleep. For example,  you live in Philadelphia, fly to Charlotte, NC in the morning, and return that evening. You ... (continued)

Here’s How to Increase Your Home Office Deduction

My mission for my clients is simple: Make sure they get the maximum deduction and that it’s totally defensible. In its “I’m here to help you” publication on home office expense, the IRS state “You can use any reasonable method to determine the business ... (continued)

Here’s What You Can Deduct if You’re a Golfer

Maybe you are considering purchasing a corporate golf membership at a local golf course, that allows you to play once a day with up to 3 guests. Basically you are receiving unlimited golf instated of paying for individual rounds; no food discounts, social ... (continued)

A Partnership Agreement-A Must for Business Partners

Let me me perfectly clear from the outset–I’m not suggesting your business to be structure as a partnership. The tax consequences and tax laws are most complicated for this type of entity, in addition to the immense social challenges that face partners in ... (continued)

Tax Audit Tips for Entertainment and Vehicle Deductions

IRS audit!  Scary thought? How will your records hold up? The records tell all. No documentation, no deductions–its that simple. Don’t expect any mercy from the IRS–its not part of the IRS Code. Recent IRS Case Mr. Jones was employed as a sales representative–the court was ... (continued)

Rent Equipment to Your Company & IRS Section 179 Expensing

Here’s how you qualify for IRS Section 179 when you buy equipment that you want to rent to your corporation: The lease term, considering options to renew, must be less than 50% of the property’s class life Your business deductions in the first 12 months ... (continued)

Tax Strategies for Real Estate Investors

You can utilize these 4 tax strategies with an existing building, one that you are buying, or a building that you are renovating. These tax strategies with put cash in your pocket, or reduce or current tax liability. Accelerate depreciation on certain components of ... (continued)

New IRS Repair Regulations for Real Estate Investors

Owning a building has many headaches–such as new roofs, HVAC Units, lighting systems, etc., as they all eventually new replacement. Prior law added to these unwanted events, as you were stuck capitalizing and depreciating the new roof-and continued to to depreciate the old one ... (continued)

Reasons & Features to Forming an LLC

One of the most common business entity types that is formed today is the limited liability company (LLC). I have many clients that are unsure as to why to form this type of entity and where. Compared to a corporation or sole proprietorship, ... (continued)