By month: February 2022
The Section 530 safe-harbor provisions allow employers to avoid penalties, if certain tests are met, on workers improperly classified as independent contractors. The employer must have filed all appropriate federal tax returns, treated similar employees consistently, and had a reasonable basis for classifying the individuals as independent contractors.
If you own or lease non-residential real property you use in your business, interior improvements you make to the property may be fully deductible in a single year instead of multiple years. But to be deducted so quickly, the improvements must meet the tax law definition of “qualified improvement property.”
Let’s say you have your business pay your college student $23,255 for a one-time project. As you know from , the payment is not self-employment income for the student. But what Form 1099 do you use to report the income? Why does tax preparation software try to apply the kiddie tax to this payment? Does the one-time payment mean the student can contribute to an IRA?
When you think of the reverse mortgage, you may not think of using it as a tax planning tool. But as you learn in this article, the reverse mortgage can save you a boatload of taxes when used in the right circumstances.
This article answers two questions: First, if a married couple sells their home to their S corporation to be a rental property, can the owners be the renters? Second, where does the S corporation obtain S corporation basis in this transaction?
If you do some work at home, you’re probably using your home internet connection. Are your monthly internet expenses deductible? Maybe. Home internet expenses can be deducted by business owners in the same way as home utility costs. But a lack of good records can booby-trap this deduction.
Taxable income has consequences. It causes income taxes. And it causes you to pay either more or less for Medicare. It boils down to this: there’s always a need to reduce your taxable income.
As a business owner, you need to decide which of the many retirement plans provide you with the most benefit. Our guide explains each of the plans so you can make an informed decision as to which retirement plan fits best for you.