November 2024
2024 Last-Minute Year-End General Business Income Tax Deductions
Your year-end tax planning doesn’t have to be hard. This article takes your daily business activities and identifies easy year-end tax-planning moves you can make today. Our six strategies will increase your tax deductions, which will reduce your taxable income so the government gets less of your 2024 cash.
2024 Last-Minute Vehicle Purchases to Save on Taxes
Here’s an easy question: Do you need more 2024 tax deductions and credits? If so, continue reading. Next easy question: Do you need a replacement business vehicle? If so, you can simultaneously solve or mitigate both the first problem (needing more deductions and credits) and the second problem (obtaining a replacement vehicle), but you must get your replacement vehicle in service on or before December 31, 2024. This article helps you find the right vehicle for the deduction or credit you desire.
2024 Last-Minute Year-End Tax Deductions 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 2024 taxes. In this article, you will learn how to find and release tax deductions that the tax code trapped inside your existing business cars, SUVs, trucks, and vans. And you will learn how the Tax Cuts and Jobs Act makes it possible for you to find a big deduction from your existing personal vehicle (note the terms “existing” and “personal”).
2024 Last-Minute Tax Strategies for Marriage, Kids, and Family
Are you thinking of getting married or divorced? If so, you need to consider December 31, 2024, in your tax planning. Here’s another question: Do you give money to family or friends (other than your children who are subject to the kiddie tax)? If so, you need to consider the zero-tax planning strategy. And now, consider your children who are under age 18. Have you paid them for work they’ve done for your business? Have you paid them the right way? You’ll find the answers here.
2024 Last-Minute Year-End Tax Strategies for Your Stock Portfolio
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 2024 income taxes. The tax code contains the basic rules for this game, and once you know the rules, you can apply the correct strategies. In addition to saving taxes with the game of offset, you can avoid paying taxes on stock appreciation by gifting stock to charity, your parents, and your children who are not subject to the kiddie tax.
2024 Last-Minute Year-End Retirement Deductions
Does your business have a retirement plan for you and, if you have employees, your employees? It should. The tax code gives you good reasons to get your retirement plan in place and perhaps make changes in existing plans.
2024 Last-Minute Year-End Medical Plan Strategies
Are you eligible for COVID-19 tax credits for yourself and/or your employees? Have you reimbursed your employees (including your employee-spouse) as stipulated in your health reimbursement arrangements? And if you operate as an S corporation, do you have your health insurance set up correctly for your best tax deduction? In this article, we help with these matters and more.
2024 Last-Minute Section 199A Tax Reduction Strategies
Remember to consider your Section 199A deduction in your 2024 year-end tax planning. If you don’t, you could end up with a useless $0 for your deduction amount. We’ll review three year-end moves that simultaneously (a) reduce your income taxes and (b) boost your Section 199A deduction.
October 2024
Three Possible Ways to Deduct Your Dog or Cat
Family pets are never deductible. But expenses for dogs, cats, and other animals can be deductible if the animal qualifies as a medical expense, business expense, or charitable deduction.
Got IRS Penalties? Know the Rules, Pay Nothing
If you got a bill from the IRS saying you owe a penalty, don’t pay it just yet. This guide can help you get those penalties removed—or even get a refund if you’ve already paid. The IRS can charge hefty penalties if you or your company files tax returns late, doesn’t pay taxes on time, or fails to deposit your employment taxes. We’ll show you how to get these penalties removed by using the right approach and keywords.
Know the Three Ways the Tax Law Treats Personal Property Rentals
Tax treatment for renting equipment and other personal property depends on whether the activity qualifies as a business or a for-profit activity. Rental business income and expenses are reported on Schedule C and subject to self-employment tax. Rental for-profit activity income and expenses are reported on Schedule 1 and not subject to self-employment tax.
New Road Map for Disputing an IRS Disallowance of Your ERC
The IRS recently announced a significant update regarding employee retention credit (ERC) claims. You now have two years to appeal an IRS disallowance, as a webpage published on September 19, 2024, explains. This is great news compared with the typical 30-day deadline, but it’s important to understand the new risks.
List of Popular Vehicles with GVWRs Greater Than 6,000 Pounds
As you likely know, vehicles with gross vehicle weight ratings (GVWRs) greater than 6,000 pounds get the best tax breaks. In this article, we give you a list of some of the popular vehicles that qualify for these breaks.
Beware of Tax Refund Offsets
Taxpayers’ federal income tax refunds can be taken by the federal government to satisfy outstanding debts for child or spousal support, state income tax, school loan defaults, unemployment compensation debts, and other debts owed to federal agencies. The IRS can also deduct unpaid taxes from refunds
HSA Secrets for Seniors: Contributions beyond Age 65
Most people must stop contributing to their health savings accounts when they turn age 65 and apply for Medicare. But if you have (or your spouse has) a large employer HSA-eligible health plan, you may be able to continue making contributions until you’re close to age 70. To do so, you must not collect Social Security or enroll in Medicare.
QBI Deduction: Maximize It Before It’s Gone
Learn how to make the most of the qualified business income (QBI) deduction before it expires in 2025. This article outlines the basics of the deduction, potential limitations, and practical strategies to help you maximize your benefits. If you’re a business owner or high earner, this is a timely opportunity to review your options and make informed tax planning decisions.
Distribution of Average Tax Rates by Income
Congress is at it again, thinking of new ways to change the tax system. And since this is an election year, there’s lots of that talk. To provide some clarity, this article shows the average tax rates that high- and low-income earners pay for income, payroll, excise, and corporate taxes.
September 2024
BOI Latest Updates for Dissolved and Disregarded Entities
FinCEN released new FAQs clarifying when corporations and LLCs are dissolved for FinCEN Business Ownership Information reporting purposes, which is different from tax purposes. FinCEN also added clarity to taxpayer ID numbers for single-member LLCs and other disregarded entities.
Employee Retention Credit (ERC) Update
Here are the latest developments on the Employee Retention Credit (ERC). First, the IRS launched a new IRS payback scheme. Second, there is looming legislation that could change the ERC landscape. Third, learn what you need to know if you’re still waiting on your claim.
The Department of Labor Makes It Harder to Hire Independent Contractors
Independent contractors are not covered by the Fair Labor Standards Act, which establishes a national minimum wage and overtime standards for employees. In an effort to require more businesses to pay overtime to workers, the U.S. Department of Labor (DOL) has adopted a new six-factor test that makes it more difficult for you to classify workers as independent contractors instead of employees.
The Supreme Court Likely Shook Up Your Buy-Sell Agreement
If your buy-sell agreement uses company-owned life insurance to buy back your shares after you die, your estate may now have to pay more tax. A recent U.S. Supreme Court decision just increased your company’s estate tax value because of that company-owned life insurance.
Unlock Aircraft Tax Deductions: Overcome Passive Loss Limits
One of the biggest hurdles to deducting losses from the business use of an aircraft is the passive activity loss limitation. Even with careful planning, you might find yourself stuck with passive losses that can’t offset income from other sources. This article details the tax strategies you need to effectively deduct your aircraft losses and navigate the complex passive loss rules.
Tax Deductions for Dues and Expenses of Being a Mason or a Lion
Tax law favors and allows deductions for civic and public service clubs and even names some favored clubs. But tax law does not allow dues deductions for airline, hotel, country, golf, athletic, and business-meal clubs.
The Cost of Trust: A Cautionary Tale for Minority Shareholders
Discover the devastating consequences of misplaced trust in business partnerships, through James Maggard’s story. Learn how a lack of oversight and professional guidance can lead to tax and financial unfairness, even for the most well-intentioned business owners.
Side Fund Increases Benefits When Cutting Social Security Taxes
Increase your Social Security retirement income by reducing your Social Security taxes and investing the savings. Explore how investing your tax savings in a side fund can lead to a higher overall benefit, while preserving essential benefits such as Medicare and spousal support.
Tax Planning to Winter in Florida and Summer in Massachusetts
You can plan your tax-deductible business life to avoid cold winters and hot summers. To do this, you need to know what a tax home is and where your tax home is located. The good news is that you have just one tax home, unless you are one of those rare individuals who have no physical home.
August 2024
Tax Guide to Deducting Long-Term Care Insurance
You can protect yourself against the financial consequences of chronic illness or disability by purchasing long-term care insurance. The premiums for this insurance are not cheap, but tax law may let you write off some or all of the cost, thus subsidizing your purchase.
Smart Solutions That Decrease Social Security and Medicare Taxes
Rising federal employment taxes, including Social Security and Medicare, are a growing burden for employees, employers, and self-employed individuals. To mitigate these costs, consider operating as an S corporation or utilizing community property state rules for husband-wife businesses. Strategic tax planning can significantly reduce the impact of these increasing taxes.
Protect Aircraft Leasing Tax Deductions from IRS Hobby Loss Rule
Leasing out your aircraft can offer financial benefits, but it also brings tax challenges. Leasing brings into play the ugly hobby loss rule that can destroy all your deductions and also tax you on the gross income. This article explains how to navigate these rules and overcome common tax hurdles associated with aircraft leasing.
Avoiding Tax Pitfalls of Aircraft Ownership in an S Corporation
Are you considering owning an aircraft through your S corporation? Beware of tax pitfalls that could limit your savings. This article explores basis limitations, depreciation recapture, and cost-sharing issues, offering strategic tips to navigate these challenges and maximize your tax benefits.
What Happens When You Die and Your S Corporation Owns the Rental?
What happens when you have a rental property inside an S corporation and you die? First, you have the step-up in basis question. Second, you have the value of the S corporation for your heirs. There’s good news here. Check it out.
Reduce Taxes by Using the Best Cryptocurrency Accounting Method
At a time of surging cryptocurrency prices, many crypto owners are enjoying substantial gains. Where multiple crypto units are sold in the same year, taxable gains can be reduced by using a crypto accounting method that provides the highest possible tax basis for each unit that is sold. This ordinarily requires that crypto owners use a method other than the default method: first in, first out (FIFO).
Avoid the Hidden Dangers of the Accumulated Earnings Penalty Tax
The IRS can impose a 20 percent accumulated earnings tax on C corporations that retain too much in earnings to avoid issuing taxable dividends to shareholders. Corporations can avoid this penalty tax by retaining no more than the accumulated earnings tax credit, electing S corporation status, or retaining no more than necessary for reasonable business needs. Proper documentation is key to avoiding the tax.
Convert C to S Corp: Save Thousands and Avoid BIG Tax Problem
Want to convert your C corporation to an S corporation? You need a plan. No plan equals BIG (built-in gains) tax: 21 percent. Worse, you’ll continue to pay at your regular tax rates on the remaining 79 percent that flows from your S corporation to you. Make a plan to avoid as much of this torturous double taxation as possible, with the four strategies in this article.
