2021 Tax 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)

6 Last Minute Valuable Business Deuctions for 2021

The purpose of this letter is to get the IRS to owe you money. Of course, the IRS is not likely to cut you a check for this money (although in the right circumstances, that will happen), but you’ll realize the cash when you pay ... (continued)

Turbo Charge Your Retirement Savings with an HSA

You probably think of a Health Savings Account (HSA) as simply an account to put aside funds for medical expenses--think again-in this brief article you will see that the HSA provides MORE tax  benefits than an IRA. To contribute to an HSA you must have ... (continued)

Self Employed COVID 19 Benefits Revisited

As you likely know, in times of economic dislocation such as the COVID-19 pandemic, the self-employed get no special government help. For example, you generally do not receive benefits that employees get, such as unemployment and paid sick leave. But this time it’s different. Because ... (continued)

529 Withdrawals-What You Need to Know!

The big advantage of 529 plans is that qualified withdrawals are always federal-income-tax-free—and usually state-income-tax-free too. What you may not know is that not all 529 withdrawals are tax-free qualified withdrawals, even in years when you have heavy college costs. Here are six important points ... (continued)

Travel Deduction & Tax-Home Rule

When you travel out of town overnight, you need to know the tax-home rule. The IRS defines your tax home, and it’s not necessarily in the same town where you have your personal residence. If you have more than one business location, one of the ... (continued)

More on Depreciation

Are you thinking about buying personal property (such as a car, a computer, or other equipment) or real property (such as a building)? If you use the property for personal purposes, it’s not deductible. But if you use it in a business, you can deduct ... (continued)

Independent Contractors Revisited

Millions of American businesses hire independent contractors to perform all types of services. And millions of American workers prefer to work as contractors rather than employees. Indeed, due to the COVID-19 pandemic, it’s likely that more people than ever want the freedom that comes ... (continued)

How Are Roth IRA Withdrawals Taxed

Some withdrawals are taxable. Even worse, some can be socked with a 10 percent early withdrawal penalty tax, and this can happen even when there’s no income tax hit. Any withdrawals from any of your Roth accounts are federal-income-tax-free qualified withdrawals if you, as ... (continued)

The New Tax Bill-What to Watch

Work in Congress on the new tax bill is progressing. The Ways & Means Committee of the House of Representatives has unveiled a detailed proposal to raise taxes by more than 2 Trillion to pay for proposed spending bills that are under negotiation. The ... (continued)

NUA- A Tax Strategy to Consider if You Own Company Stock

Do you own any of your employer’s company stock inside your employer’s 401(k), ESOP, profit sharing plan, or other retirement plan? Has it gone up in value since you got it? If so, you should start thinking about what to do with the stock ... (continued)

More on Tax Audits

As a business owner, you are in partnership with the IRS, like it or not. You share your net profits with the IRS according to your partnership agreement (known to you as the Internal Revenue Code). To make sure you are sharing fairly, the IRS can ... (continued)

Sale Of Principal Residence-New Rules!!

Here’s good news. IRS regulations allow you to claim a prorated (reduced) gain exclusion—a percentage of the $250,000 or $500,000 exclusion in select circumstances. The prorated gain exclusion equals the full $250,000 or $500,000 figure (whichever would otherwise apply) multiplied by a fraction. The numerator ... (continued)

Tax Planning Strategies To Reduce Self Employment Tax

What happens when lawmakers enact a new tax? It starts small. It looks easy. In 1935, the self-employment tax topped out at $60. Those 1935 lawmakers must be twirling in their graves with the new rules for 2021, which levy the following taxes: A self-employment tax of up ... (continued)

Reminder About Keeping GOOD records

As a business owner, you are in partnership with the IRS, like it or not. You share your net profits with the IRS according to your partnership agreement (known to you as the Internal Revenue Code). To make sure you are sharing fairly, the IRS can ... (continued)

Another Sad Story For Not Filing Tax Returns

Here’s a sad story of a dentist who did not file his tax returns. Of course, as you know, the failure to file tax returns often gets the IRS’s attention. In this case, it did, and this dentist suffered accordingly. The IRS used the 1099s ... (continued)

Meals & Entertainment Chart-0%-50%-100%

Have you missed partying and having business meals with your prospects, customers, and employees? Well, get ready to start again. Soon, COVID-19 will behind us. It could be just a few short months away. To help you get ready, check the table below for what you ... (continued)

Do NOT Embezzle Payroll Tax Withholding From Your Employees-Here's Why!

If you have employees in your business, this story should have your attention. Timothy McCloskey, president and sole shareholder of Brosius, delegated financial responsibility to Kathleen Lawson, his bookkeeper and chief financial officer. Ms. Lawson embezzled more than $800,000 from Brosius and failed to remit ... (continued)

Real Estate Rental Losses-You MUST Have The Proof

If you own rental properties that can provide you tax shelter with their losses and your Form 1040 adjusted gross income is less than $150,000 (without considering rental losses), you need to overcome the tax code passive loss rules. Here are some important points. Keep a ... (continued)

Crytocurrency Taxable Transactions-Beware!

Here’s something to know about cryptocurrencies. Because cryptocurrencies are classified as “property” rather than as securities, the wash-sale rule does not apply if you sell a cryptocurrency holding for a loss and acquire the same cryptocurrency before or after the loss sale. You just have ... (continued)

Three REAL Problems + Costs From Filing Your Taxes Late

Three bad things happen when you file your tax return late. What’s Late? You can extend your tax return and file during the period of extension; that’s not a late-filed return. The late-filed return is filed after the last extension expired. That’s what causes the three bad ... (continued)

Sale of Principal Residence Refresher

The $250,000 ($500,000, if married) home sale gain exclusion break is one of the great tax-saving opportunities. Unmarried homeowners can potentially exclude gains up to $250,000, and married homeowners can potentially exclude up to $500,000. You as the seller need not complete any special tax ... (continued)

More on Crytocurrency Taxable Transactions

Cryptocurrencies have gone mainstream. For example, you can use bitcoin to buy far more than you would think. To see, try googling “What can I buy with bitcoin?” You will get more than 350,000 hits. But using cryptocurrencies has federal income tax implications that may ... (continued)

Home Office to Include Garage Space?

Do you claim a tax deduction for a home office? Should you include or exclude your garage space in your calculations of business-use percentage? Ronald Culp earned an office deduction for 78 percent of his home. That’s a nice percentage, but what’s really interesting is how ... (continued)

Finding the Winning Strategy For Your IRS Audit

If you are undergoing or about to be audited by the IRS audit, you should know how your tax positions stack up against the IRS examiners’ positions. In most cases, you are discussing the facts, not the law, and you prove your facts with ... (continued)

Travel Day Business?-Here's What the IRS Says

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)

How To Handle CoronaVirus IRA Distribution Taken in 2020- NOW

Did you take a coronavirus distribution (CVD) of up to a combined limit of $100,000 from one or more of your traditional IRAs in 2020? You can recontribute the CVD amount(s) back into one or more traditional IRAs within three years of the withdrawal ... (continued)

Material Participation in Rental Properties-IRS Audit Case-$55,000 Result

Let me tell you about Lisa and Jimmy. They had a very unsatisfactory visit with the IRS. The auditor examined their three rental properties, disallowed their losses, and told them to expect a tax bill for $55,000. Current score: IRS $55,000 ahead. But one good thing happened ... (continued)

2 Easy Ways to Make Corrections to Your File Return

If you made an error on your tax return, don’t worry—there are two easy ways to fix it: A superseding return A qualified amended return A superseding return is an amended or corrected return filed on or before the original or extended due date. ... (continued)

Deduct 100% of Your Business Meals Under New Tax Law

Since 1986, lawmakers have limited business meal deductions: first to 80 percent, and then to 50 percent (unless an exception applies). But on December 27, 2020, in an effort to help the restaurant industry due to the COVID-19 pandemic, lawmakers enacted a new, temporary 100 ... (continued)

More on Employee Retention Credit (ERC)

When Congress passed the CARES Act in March 2020, most businesses took advantage of the Paycheck Protection Program (PPP) loan; Congress also authorized a second option for employers--the ERC, a fully refundable credit against the business\'s payroll tax liabilities.Initially, employers had to chose between ... (continued)

Tax Planning Strategies To Reduce Self Employment Tax

What happens when lawmakers enact a new tax? It starts small. It looks easy. In 1935, the self-employment tax topped out at $60. Those 1935 lawmakers must be twirling in their graves with the new rules for 2021, which levy the following taxes: A self-employment tax of up ... (continued)

Need to Hire Workers-Work Opportunity TAX Credit

The Work Opportunity Tax Credit rewards your good deeds. And now, because of new legislation, the rules are in place for longer than usual. If you need to hire workers in your business, this dollar-for-dollar reducer of your taxes is one to know about. Suppose ... (continued)

Is Your SUV Available for Maximum Tax Deduction?

Here’s a vehicle story that you will find of interest. Taxpayer DJ is in an IRS audit of his 2018 tax return. It is now at the IRS appeals level. The vehicle in question is an SUV with a curb weight of 5,700 pounds and a ... (continued)

Proper Allocation Needed for Your Investment Property

When you buy business or investment real property, such as an apartment building, you usually pay one lump sum for land, buildings, and other improvements. There’s no cost breakdown. You can’t depreciate land because it doesn’t wear out. So, as far as depreciation goes, land ... (continued)

PayPal 1099 Tax Loophole Going Bye Bye

The PayPal loophole is going away in a little over six months from now. You may remember the strategy where you can avoid giving 1099s to contractors and vendors when you use PayPal or a similar service as your payment platform. With this strategy, you push ... (continued)

CrytoCurrencies -Income Tax Implications

Cryptocurrencies have gone mainstream. For example, you can use bitcoin to buy far more than you would think. To see, try googling “What can I buy with bitcoin?” You will get more than 350,000 hits. But using cryptocurrencies has federal income tax implications that may surprise ... (continued)

1031 Exchanges to Defer Taxes on Real Estate Sales

Do you own business or investment property that has gone up in value? Would you like to acquire new property? If you sell the old property, you’ll have to pay tax on your profits. Don’t do that. Instead, do a tax-deferred Section 1031 transaction. With ... (continued)

You Can Deduct 100% of These Deductions-Not 50%-Here\'s How

When you know the rules, you can party with your employees and deduct 100 percent of the cost. The IRS says that the following types of entertainment qualify for the 100 percent employee entertainment tax deduction: Holiday parties, annual picnics, and summer outingsMaintaining a swimming ... (continued)

Here is a Significant Reason To Invest in Historic Buildings

The Federal Rehabilitation Tax Credit, or rehab credit, offers significant financial incentives for owners and leaseholders of historic buildings to renovate those structures. What’s the big deal? Why are tax credits so exciting? Tax credits, unlike deductions, reduce your tax bill dollar-for-dollar. If you spend $100,000 ... (continued)

Disaster Strikes-Still Need Your Records for the IRS

Disasters such as storms, fires, floods, freezes, and hurricanes can damage or destroy vital business records. You need accounting and tax records not only to file your taxes (including claims for casualty losses), but to file insurance claims, bill clients, pay bills, obtain loans, deal ... (continued)

Know the Business Mileage Rules

When you know the rules related to business mileage, you protect yourself in the event of an IRS audit, and pay less tax. Take Henry, for example. Before he knew the mileage rules, he deducted 30 percent ... (continued)

100% Meals Deduction-YES!!

Since 1986, lawmakers have limited business meal deductions: first to 80 percent, and then to 50 percent (unless an exception applies). But on December 27, 2020, in an effort to help the restaurant industry due to the COVID-19 pandemic, lawmakers enacted a new, temporary 100 ... (continued)

Let's Revisit Meals & Entertainment

Have you missed partying and having business meals with your prospects, customers, and employees? Well, get ready to start again. Soon, COVID-19 will behind us. It could be just a few short months away. To help you get ready, check the table below for what you ... (continued)

Small Employer's Health Reimbursement Plan (QSEHRA)-Assist Your Employees!

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)

Child Tax Credit Increased Sunstantiallly in 2021!!

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)

Health Insurance Cost Changes--Please Read on!

With the passage of the American Rescue Plan Act of 2021 (ARPA), Congress has temporarily abolished the health insurance premium tax credit “subsidy cliff.” For 2020 and 2021, self-employed and small-business owners and other individuals who must purchase individual health insurance may qualify for ... (continued)

Employer Retention Credit-Potential Example

With the Consolidated Appropriations Act, 2021, millions of small-business owners like you now 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)

Can You Claim ERC as Owner of C or S Corporation

Members of the tax community struggle with the “solo corporate owner” qualification for the employee retention credit (ERC). The IRS in one of its answers to frequently asked questions explains the rule as follows: 59. Are wages paid by an employer to employees who are related ... (continued)

More On The Employer Retention Credit

First, say thanks to the Consolidated Appropriations Act, 2021 (CAA), enacted December 27, 2020. It opened the door (retroactively and going forward) for Paycheck Protection Program (PPP) participants to also claim the employee retention credit (ERC). Reminder. Tax credits are the best. They usually reduce ... (continued)

2020 May Be the Year to File Married Filing Separately-Please Read!!

If you are married, most likely you’ve always filed a joint tax return with your spouse. Most of the time, a joint return shows less overall tax than two separate tax returns do, because the married-filing-separately status has many tax disadvantages. Fast-forward to the 2020 tax ... (continued)

PPP Extended-Please read the Details!

This is likely it—your last chance to obtain first- and second-draw Paycheck Protection Program (PPP) monies. A new law, the PPP Extension Act of 2021, extends the expiration date to the later of May 31 or when the money runs out. Note the phrase ... (continued)

New Tax Law Increases in the Earned Income Tax Credit

The earned income tax credit (EITC) has been around for years. But for some folks, it’s never been worth as much as it will be for 2021. That’s thanks to liberalizations included in the American Rescue Plan Act of 2021 (ARPA). Some of the ... (continued)

Tax Bonanza--Expanded Individual Tax Credits for 2021

For tax year 2021, Congress is giving away billions of dollars in additional tax credits on your Form 1040 individual tax return. These temporarily expanded tax credits include the child tax credit, the dependent care credit, and the health insurance premium tax credit. With good planning ... (continued)

Starting A New Business-Get Up to $100K in Tax-Free Money

You likely already know that the employee retention credit (ERC) is a good deal—if you qualify. Now, thanks to the recently enacted American Rescue Plan Act of 2021 (ARPA), you can qualify for up to $100,000 of ERC in the third and fourth quarters of ... (continued)

ERC-Employee Retention Credit-In Addition to PPP

Before the December 27, 2020, enactment of the new COVID-19 relief law, you may have chosen the Paycheck Protection Program (PPP) loan and given no thought to the employee retention credit. Remember, under the original law, you had to choose between the retention credit ... (continued)

Disaster Losses--New Tax Law Qualifications

Disasters such as storms, fires, floods, and hurricanes damage or destroy property. If property such as an office building, rental property, business vehicle, or business furniture is damaged or destroyed in a disaster, your business may qualify for a casualty loss deduction. It’s easier to deduct ... (continued)

Partners' Guarantee Payments or Preferred Payments?

With all that’s been going on, it’s easy to forget that it’s Section 199A season again. Yes, we’re talking about that lovely 20 percent deduction. Are you compensating yourself and your fellow partners or LLC members with so-called guaranteed payments? If so, you may benefit ... (continued)

Congress Passes Corporate Transparency Act

If you’ve formed a limited liability company (LLC) or corporation to operate your business or are thinking about doing so, you need to know about the Corporate Transparency Act. Enacted in January 2021, Congress’s new law will end business owners’ ability to form business ... (continued)

CAA Tax Breaks Expanded & Extended

When you operate a business, you have a variety of tax breaks available. The recently enacted Consolidated Appropriations Act extends and expands some of the breaks. I bring the following selection of them to your attention as a tax-strategy buffet. You can deduct 100 ... (continued)

Loan Payments MADE by the SBA-Taxable?

Are you one of the millions of businesses that have an outstanding non-disaster Small Business Administration (SBA) loan? These include 7(a) loans (general small business loans of up to $5 million),504 loans (loans of up to $5.5 million to provide financing for major fixed assets ... (continued)

PPP First Draw Law Requirements

Two things to know about the Paycheck Protection Program (PPP) first draw enacted on December 27, 2020: The first draw is for those who missed getting in on the original PPP, which expired on August ... (continued)

Maximize Your Retirement Contribution--Solo 401(K)

The key to a successful and substantial retirement plan savings is to initiate this program, as early as possible, and make wise investments as well.If you want to maximize your retirement contribution, and your resulting tax liabilities---please consider the Solo 401(K).Source 1 (You)--Elective Deferral ... (continued)

Business Retirement Plans-Creates Wealth!!

How do you multiply your net worth? Let the government help. Here’s how: with both the SEP IRA and the solo 401(k) retirement plans, your investment in your tax-favored retirement creates tax deductions for the money you invest in the plan,grows tax-deferred inside the plan, andsuffers taxes ... (continued)

Are SBA Loans Taxable?

Are you one of the millions of businesses that have an outstanding non-disaster Small Business Administration (SBA) loan? These include 7(a) loans (general small business loans of up to $5 million),504 loans (loans of up to $5.5 million to provide financing for major fixed assets ... (continued)

Deducting S Corporation Losses

2020 was a difficult for certain businesses.....I am being asked by these clients who are structured as S Corporations, how they can utilize their losses. This article addresses this issue.S Corporations are "flow-through" entities meaning income, deductions, credits and other activity are allocated to ... (continued)

Congress Extends Tax Law- 1040 Extenders

The Taxpayer Certainty and Disaster Tax Relief Act of 2020, enacted on December 27, 2020, deals with the annual tax extenders. Congress made some of them permanent, while others got short- or long-term extensions. These are the big five Form 1040 tax breaks that ... (continued)

Employer Retention Credit-New Law!

Before the December 27, 2020, enactment of the new COVID-19 relief law, you may have chosen the Paycheck Protection Program (PPP) loan and given no thought to the employee retention credit. Remember, under the original law, you had to choose between the retention credit ... (continued)

A Word About Stimulus Payments and Tax Implication(s)

They received the full amounts of both Economic Impact Payments if: Their first Economic Impact Payment was $1,200 for individuals; $2,400 married filing jointly for 2020, plus $500 for each qualifying child including those born in 2020. Their second Economic Impact Payment was $600 for individuals; ... (continued)

E-Filing Will Start February 12, 2021 for Individuals

The IRS will begin accepting and processing 2020 tax year returns on Friday, February 12, 2021. The most expedient way for taxpayers to receive their refunds is by filing electronically and choosing direct deposit for their refund. By Law. the IRS cannot issue refunds before mid-February ... (continued)

IRS Wrong on 1st & Last Stop Rule

Here’s a tax rule to know: if you have your principal office in your home, your trips from home to your first stop, and from your last stop to home, create deductible business mileage. Here’s high proof from IRS Revenue Ruling 99-7, conclusion paragraph 3, ... (continued)

All About LLCs

Limited liability companies (LLCs) are a popular choice of entity for small businesses and investment activities. LLC owners are called members. Single-member LLCs have one owner, although spouses who jointly own an LLC in a community property state can elect treatment as a single member LLC ... (continued)

EIDL Grants Taxable? Expenses Tax Deductible?

Billions of dollars in grants are being doled out to individuals and businesses in the wake of the COVID-19 pandemic. The recently enacted second stimulus bill has increased these grants, including $25 billion in rental assistance for individuals, a new round of Small Business ... (continued)

Home Office-Show Me the Proof

Question. If you have an office outside your personal home—say, downtown—can you have a tax-deductible office inside your home for the same trade or business?  Answer. Yes.  Who says that? The IRS. Show me where they say that! In IRS Publication 587, the IRS says this:  Your home office ... (continued)

PPP New Loans-Don’t Miss Out

Did you miss out on the first two opportunities to receive your tax-free Paycheck Protection Program (PPP) cash? Many did miss out. Why? One reason: the word “loan.” Who wants a loan? No one. Well, almost no one. But who wants a cash gift, tax-free? If you do, read ... (continued)

Tax Planning When Love One Passes

If you become an executor of your loved one’s estate, you may have some important tax decisions to make. Here are some quick thoughts. The decedent’s medical expenses provide you with planning opportunities to deduct as itemized deductions (subject to the 7.5 percent floor) not only ... (continued)

PPP Tax Rules Past & Present

Good news. The new Paycheck Protection Program (PPP) law enacted with the stimulus package adds dollars to your pockets if you have or had PPP money. Before we go further, please note the PPP money comes to you in what appears to be a loan. We ... (continued)

8 New Tax Breaks Under New Stimulus Act

As you doubtlessly know, Congress recently passed a massive new stimulus bill that was enacted into law on December 27, 2020. Most of the public’s attention has been focused on the bill’s authorization of additional stimulus checks and new PPP loans and other ... (continued)

New PPP Monies on the Table

Did you miss out on the first two opportunities to receive your tax-free Paycheck Protection Program (PPP) cash?  Many did miss out. Why?  One reason: the word “loan.”  Who wants a loan? No one. Well, almost no one.  But who wants a cash gift, tax-free?  If you do, ... (continued)

8 Tax Breaks under COVID-19

As you doubtlessly know, Congress recently passed a massive new stimulus bill that was enacted into law on December 27, 2020. Most of the public’s attention has been focused on the bill’s authorization of additional stimulus checks and new PPP loans and other ... (continued)