By month: February 2022

Owe Taxes for Misclassified Workers? Section 530 to the Rescue!

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.

Big Tax Break: Qualified Improvement Property

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.”

Three More Answers on “Paying for College—A Handy-Dandy Strategy”

Let’s say you have your business pay your college student $23,255 for a one-time project. As you know from Paying for College—a Handy-Dandy Strategy, 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?

Using a Reverse Mortgage as a Tax Planning Tool

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.

Two Answers about Selling Your Home to Your S Corporation

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?

Don’t Rob Yourself of the Home Internet Deduction

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.

Q&A on Medicare Health Insurance Premiums and Taxes

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.

PDF Download: Retirement Plans for Business Owners with No Employees

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.


[ View / Print full text of all articles in this issue ]