2023 Tax Insights
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)
What are NFT's & Tax Consequesnces
Did you buy, sell, donate, or receive an NFT during the tax year? If so, you must answer “yes” to the digital assets question on page one of the IRS Form 1040. Additionally, if you have sold an NFT, you could be liable for ... (continued)
Early Withdrawal on Retirement Plan Updates!!
In late 2022, Congress passed the SECURE 2.0 Act, which made several changes to tax-advantaged retirement plans. Many of the changes create new exceptions to the 10 percent penalty on early withrawals from IRAs and other retirement accounts before age 59 1/2. Starting in 2024, ... (continued)
Health Insurance for S Corporation-Update!!
I’m reaching out to remind you of two important issues related to health insurance deductions for S corporations. First, if you own more than 2 percent of an S corporation and provide health insurance coverage, there are three steps you need to follow to ... (continued)
S Corporation Health Insurance 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)
Rental Income Subject to SE Tax???
Do you owe self-employment tax on Airbnb rental income? That’s a good question. In Chief Counsel Advice (CCA) 202151005, the IRS opined on this issue. But before we get to what the IRS said, understand that the CCA’s conclusions cannot be cited as precedent or authority ... (continued)