By month: April 2024

BOI Reporting Unconstitutional for 65,000, but Likely Not You

You are likely on the hook to file your BOI report. The Corporate Transparency Act has been declared unconstitutional by a federal district court in Alabama, but that only applies to 65,000 businesses. Meanwhile, New York State has adopted its own beneficial ownership information reporting law that applies to limited liability companies.

Updated Blueprint for Employee-Spouse 105-HRA (Health Reimbursement Arrangement)

The 105-HRA is the medical reimbursement plan you likely want to use if (a) you report your business income and expenses on Schedule C, E, or F of your Form 1040, and (b) you can make your spouse your one and only eligible employee. Also, if you are single and operate your business as a C corporation, and if you are the one and only eligible employee of your C corporation, the 105-HRA is the medical reimbursement plan for you.

Tax Quiz—Sell Stock at a Loss to Your Daughter

What happens when you sell stock or other assets at a loss to a related party, such as your daughter? This is a tax law you need to know about.

Create Tax-Free Fringe Benefit Deductions for Your Smartphone

Do you operate your business as a corporation, a partnership, or a proprietorship, or as an LLC taxed as one of these three entities? Your choice of entity impacts whether you can create a no-hassle, tax-free fringe benefit for you and/or your employees’ smartphones. In this article, you learn the rules that apply and which ones give you the best benefits.

Five Rules for Turning Your Vacation—Even a Luxurious One—into Tax-Deductible Business Travel

The next time you plan a vacation, stop and think about how you could make it deductible. If you find a good business reason to visit that destination and you throw in enough business hours on the trip, you suddenly convert a non-deductible personal trip into a deductible business expense.

Despite Its High Cost, This Education Is Deductible

If you attend an expensive educational program, do you have to amortize the cost, or can you expense it? Further, would such a program trigger an IRS audit?

Tax Reform Doubles Down on S Corporation Reasonable Compensation

The Tax Cuts and Jobs Act tax reform gave you a new 20 percent deduction on pass-through income. For S corporation owners, your reasonable compensation plays a key role in determining your Section 199A deduction. Here, we’ll explain what the law says on reasonable compensation and how you can come out ahead.

Tax Rules for Providing Free Meals and/or Lodging to Employees

The tax rules on free meals for employees have changed to create more revenue for the government and fewer fringe benefits for employees. The big change for meals is the drop in the employer deduction, from 100 percent before 2018 to 50 percent for years 2018-2025 to zero in 2026 and beyond.


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