Business Deduction Insights
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)