Business Deduction Insights

FinCEN New Filing Rules

For existing businesses, the Corporate Transparency Act (CTA) goes into effect on January 1, 2024, and imposes a brand-new federal filing requirement on most corporations, limited liability companies, and limited partnerships and on certain other business entities. No later than December 31, 2024, all non-exempt ... (continued)

Need More Tax Deductions in 2023-Please Read!!

Here’s an easy question: Do you need more 2023 tax deductions? If the answer is yes, continue reading. Next easy question: Do you need a replacement business vehicle? If so, you can simultaneously solve or mitigate the first problem (needing more deductions) and the ... (continued)

The Dreaded Self-Employment Tax

If you own an unincorporated business, you likely pay at least three different federal taxes. In addition to federal income taxes, you must pay Social Security and Medicare taxes, also called the self-employment tax. Self-employment taxes are substantial! Indeed, many business owners pay more ... (continued)

More on Travel Expenses

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)

A Brilliant Tax Strategy for Paying Your Children

The hire-your-child strategy works best for the Schedule C proprietorship because in this entity structure, the tax code exempts both the child and the proprietorship from payroll taxes. Corporate tax entities do not enjoy this tax benefit. However, there is a strategy to avoid payroll ... (continued)

Hiring Your Children-The Basics

You can pay your child to work in your business and get paid for paying your child. The basic mechanics of this are (a) you deduct the wages and (b) your child pays zero or very little in income taxes. The three points below ... (continued)

Solo 401K--The Maximum Tax Reduction Strategy!

Have you procrastinated about setting up a tax-advantaged retirement plan for your small business? If the answer is yes, you are not alone---This is an update from a prior Blog. You are paying income taxes that could easily be avoided. Therefore, consider setting up ... (continued)

Year-End Considerations for Existing Vehicles

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 2023 taxes. But don’t wait. Get on ... (continued)

Year-End Retirement Plan Considerations

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 five things to consider. 1. Establish Your 2023 Retirement Plan First, a question: Do you have ... (continued)

New More 2023 Tax Deductions??

Here’s an easy question: Do you need more 2022 tax deductions? If the answer is yes, continue reading. Next easy question: Do you need a replacement business vehicle? If so, you can simultaneously solve or mitigate the first problem (needing more deductions) and the ... (continued)

Converting Personal Vehicle to Business Use-Important Details!

If you can convert a personal vehicle to business use, you likely can increase your tax benefits—and do that without spending any money or driving another business mile. Here’s an example: Once Mel and Sharpe, his wife, started using both cars, they had 73.7 ... (continued)

Travel Tax Rules You Must Know!

Say you are going to travel from your home in Washington, D.C., to San Francisco. Will the tax law allow you to travel to San Francisco by car, train, plane, or boat, your choice? Answer. Yes. But special rules apply. You need to know these rules ... (continued)

IRS Takes Action Against Bogus ERC Claims

The IRS is on a tear against improper employee retention credit (ERC) claims. Here are four recent actions taken by the IRS: 1. Unfair Stop to Processing New ERC Claims On September 15, 2023, the IRS announced a temporary halt on processing new ERC claims until ... (continued)

HSA Revisited-May Be a Good Fit

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 were active, ... (continued)

2023 Tax Law on Meals Deductions

I hope this letter finds you well. As your tax advisor, I want to provide you with the latest updates on the business meal deduction for the year 2023 and beyond. As you may already know, there have been some significant changes to the business ... (continued)

Business Mileage Documentation Alert!

The tax law contains no reasonableness test for mileage. In fact, tax code Section 274 specifically discards the reasonableness standard and puts in its place strict substantiation rules. I recommend that you keep a mileage log for at least three consecutive months to prove your business-miles ... (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)

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)

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)

1031 Exchanges Update

Have you sold, or are you planning to sell commercial or rental property? To avoid immediately paying capital gains tax on your profit, you have options: Deferring the capital gains tax using a Section 1031 exchangeDeferring the capital gains tax using a qualified opportunity zone ... (continued)

More Year End Tax Reduction Strategies!

The purpose of this article is become aware of legal tax savings strategies to reduce year-end tax liabilities. Of course, the IRS will not likely cut you a check for this money (although, in the right circumstances, that will happen), but you’ll realize the cash ... (continued)

Year-End Retirement Considerations

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 2022 Retirement Plan First, a question: Do you have ... (continued)

Bonus Depreciation Coming to an End!

All good things must come to an end. On December 31, 2022, one of the best tax deductions ever for businesses will end: 100 percent bonus depreciation. Since late 2017, businesses have used bonus depreciation to deduct 100 percent of the cost of most ... (continued)

Electric Vehicle New Tax Laws-Maybe Be Best To Buy Before 12/31/22?

There’s good and bad news if you’re in the market for an electric or plug-in hybrid electric vehicle. The good news is that the newly enacted Inflation Reduction Act includes a wholly revamped tax credit for electric vehicles that starts in 2023 and continues ... (continued)

Employee Retention -It's NOT Too Late!

If you had W-2 employees in 2020 and/or 2021, you need to look at the Employee Retention Credit (ERC). As you likely know, it’s not too late to file for the ERC. And now is a good time to get this done. You can qualify for ... (continued)

10 Tax Strategies for S Corporations

Here\'s 10 strategies to reduce your S Corporations Taxes:1.  Reduce the S Corporation owner\'s wages2.  Deduct the S Corporation owner\'s health insurance premiums3.  Employ your child to lower your taxable income4. Sell your home to the Corporation before converting it to a rental property5. ... (continued)

Beat the TAXMAN with These 11 Tax-Free Income Sources!

I was perusing the Internal Revenue Code (it’s one of the things I do) and started to think about the various sources of tax-free income. Here are the 11 that jumped out at me: Roth IRAs Social Security benefits ... (continued)

Expanded Tax Credits for Your BUSINESS Electric Vehicle

You may have heard that the newly enacted Inflation Reduction Act includes an expanded tax credit for electric vehicles. Although this personal credit has gotten most of the publicity, the new law launched a new commercial clean vehicle credit—specifically for business-use electric vehicles. And ... (continued)

Defer Taxes With This Tax Strategy-Installment Sale

Do you own investment property? What about a small business? Sooner or later, you will probably want to sell. One of the downsides of selling a business or investment property is the huge tax bill at the end. Profits are likely subject to the ... (continued)

You Still Can Claim ERC-Here's How!

During much of 2020 and 2021, you may have qualified for the Employee Retention Credit (ERC). With the ERC, you found (or could find) tax credits of up to $26,000 per employee. That’s a lot. With 10 employees, that’s $260,000. Key point. If you have not ... (continued)

How to Switch From Mileage to Actual Costs for your Vehicle

Is the mileage rate sticking it to you? Could you increase your tax deductions by switching from the IRS mileage rate to the actual-expense method? If so, you will be happy to learn you can make that switch. When you choose the mileage rate, you elect ... (continued)

Legal Way to Deduct Home Office for Your S Corporation

You likely know that the home-office tax deduction provides tax savings to business owners. It turns otherwise nondeductible personal expenses into valuable business deductions. When you operate your business as a proprietorship, you simply deduct home-office expenses on Schedule C. But when you operate ... (continued)

Here's How to Maximize Your Business Mileage Deductions!

I absolutely, positively don’t like commuting mileage. You should dislike it, too. It’s personal. It’s not deductible. But with knowledge, it’s avoidable. Let’s eliminate commuting and make those trips from your home to your office deductible. The law gives you two ways to eliminate commuting from your ... (continued)

Why an S Corporation Reduces Self Employment Tax-Legally!!

If you report your business on Schedule C of your Form 1040, or are a general partner, this article is for you! Have you noticed that the self-employment tax significantly drains your cash? The S corporation may plug a good chunk of that leak ... (continued)

Watch Out For This Coming to Your Business-Financial Crimes Enforcement Network

Do you own or advise a corporation, limited liability company (LLC), limited partnership, limited liability partnership, limited liability limited partnership, or business trust? Or are you planning to form one of these entities? If so, be alert. There’s a new federal filing requirement coming. Back ... (continued)

There's Relief from Improperly Classifying Workers as Independent Contractors

The IRS Classification Settlement Program (CSP) offers a chance to settle your employment tax debt due to worker misclassification, if you do not qualify for Section 530 relief. CSP agreements typically result in a substantial reduction of assessed employment taxes, especially if you misclassified ... (continued)

Legal Way to Deduct Home Office for Your Corporation

Here\'s the 2 boilerplate explanations IRS agents use to deny home office deductions:1. IRS has disallowed your deductions for office-in-the-home expense because you have not established that is was for the convenience of your employer. Voluntary, vocational, or incidental use of part of your ... (continued)

$75 Receipt Rule for Business Vehicles

The $75 rule is contained in IRS Regulaton 1.274-5(c)(2)(iii), and the best explanation of what this rule says is found in IRS Notice 95-50, which states that the $75 rule applies to travel, entertainment, gifts, and listed property. IRC Section 280(f)(d)(4) states that listed ... (continued)

Misclassification of Independent Contractors- Please Read--- IRS Relief

The IRS Classification Settlement Program (CSP) offers a chance to settle your employment tax debt due to worker misclassification if you do not qualify for Section 530 relief. CSP agreements typically result in a substantial reduction of assessed employment taxes, especially if you misclassified ... (continued)

QSEHRA-For Small Business Health Insurance Plans-Still Works!

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)

S Corporation & Health Insurance Rules-Important!

You and your S corporation continue to enjoy good news in 2018 when it comes to your health insurance. And that good news also applies to your 2017 taxes. You first have to thank the 21st Century Cures Act for: Reinstating and extending ... (continued)

Own More than 1 Business-Please Read This

When you own more than one business, you need to consider the grouping rules that apply for passive-loss purposes. Should one of your businesses lose money, you may not deduct the losses from that business during the current tax year unless you materially participate in the ... (continued)

Small Business-Read This!!

Don’t let this happen to you. Here’s what happened to Mr. Kazmi. First, a little background. Urgent Care Center Inc., an Illinois corporation, employed Mr. Kazmi as a part-time hourly bookkeeper. He had no ownership interest in Urgent Care. He was not an officer of Urgent Care. ... (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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

Employer Retention Credit-Check It Out

The Employee Retention Credit is a refundable tax credit against certain employment taxes equal to 50 percent of the qualified wages an eligible employer pays to employees after March 12, 2020, and before January 1, 2021. Eligible employers can get immediate access to the ... (continued)

Last Minute Tax Planning for Existing Vehicles

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 2019 taxes. But don’t wait. Get on this now!  Take Your ... (continued)

No 1099 Issued–No deduction IRS Says–Read On!

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)

Vehicle Titled in Your Personal Name-Here’s How to Structure CORPORATE Deduction

If you operate your business as a corporation but own the business car personally, you have no vehicle deduction possibility without corporate reimbursement, because the Tax Cuts and Jobs Act does not allow employee business expenses for years 2018 through 2025.  Taxpayers Who Did This  The ... (continued)

Year End New Vehicle Purchase? Tax Implications!

Here’s an easy question: Do you need more 2019 tax deductions? If yes, continue on.  Next easy question: Do you need a replacement business vehicle?  If yes, you can simultaneously solve or mitigate both the first problem (needing more deductions) and the second problem (needing ... (continued)

New Individual Coverage HRA has Much to Offer to Small Business

The new individual coverage HRA (ICHRA) has much to offer a small business (businesses with fewer than 50 employees).  In this client letter, we give you nine insights into the new ICHRA.  Insight 1. Application of the Class Size Rule  The class size requirement applies only ... (continued)

Retirement Plan + Medical Year End Tax Strategies

When you get busy with your business, it’s easy to forget about your retirement accounts and medical coverages and plans.  But year-end is approaching, and now’s the time to take action.  Here are the six strategies that you can implement before the end of the ... (continued)

Year End Tax Strategies for Your Business

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 ... (continued)

Here’s How To Help Your Employees with Their Healthcare Costs

The new Individual Coverage HRA (ICHRA) lets you help employees with their health care costs without fear of ACA penalties. Starting January 1, 2020, employers can offer a new type of HRA called the Individual Coverage HRA, or ICHRA. The ICHRA allows you to reimburse (free of ... (continued)

January Newsletter-More on New Tax Law

Tax Reform Provides New 20% Deduction The new 2018 Section 199A tax deduction that you can claim on your IRS Form 1040 is a big deal. There are many rules (all new, of course), but your odds as a business owner of benefiting from ... (continued)

Here’s Some Business Deductions New Law Eliminated

Lawmakers finally did it. First, they reduced the directly related and associated entertainment deductions to 80 percent with the 1986 Tax Reform Act. Later, in 1993, they reduced that 80 percent to 50 percent.  And now, with the newest tax reform, lawmakers simply killed business ... (continued)

HSA’S- Here’s Why They Work!

There are generally tax strategies that can work for you and your business, if you understand the tax code. The Health Savings Account is a powerful part of a health care strategy because: saves you $$$ through lower taxes grows tax-free gives you a chance to ... (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)

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)

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)