By month: May 2022

IRS Says Your Independent Contractors Are Employees: Use the CSP

The IRS Classification Settlement Program (CSP) offers a chance to settle your employment tax debt due to worker misclassification if you do not qualify for Section 530 relief. CSP agreements typically result in a substantial reduction of assessed employment taxes, especially if you misclassified workers over several years.

Donor-Advised Funds: A Tax Planning Tool for Church and Charity Donations

If you give money to your church and/or other 501(c)(3) organizations, you should consider establishing an account with a donor-advised fund to increase your tax benefit possibilities. It’s easy to do and gives you an immediate charitable deduction—even when you have the fund distribute the money years later.

How Rental Property Owners Can Avoid the Net Investment Income Tax

If you earn profits from rental property and your income is high enough, you pay the 3.8 percent net investment income tax (think surtax on high income) unless you can qualify for one of three exemptions, as we explain in this article.

$75 Receipt Rule for Business Vehicles

Under tax law, your business vehicle is considered “listed property.” The IRS has a regulation that applies the $75 receipt rule to listed property.

Is Now the Time to Transfer Your Home to Your Adult Child?

With today’s home prices and the crazy real estate market, it’s likely difficult for your children to buy a home. And it’s conceivable that you are ready to move on from your existing home. If this is true, this might be the right time to transfer your home to your child, as we explain in this article.

Tax Code Enables Embezzler’s Win, Victim’s Loss

This taxpayer embezzled money from his employer, got caught, and died in jail. Before he died, the embezzler sent the embezzled money to the IRS as an estimated tax payment. Read why the company can’t get their stolen money back once the thief paid the money to the IRS in taxes.

Selling Your Highly Appreciated Vacation Home? What About Taxes?

If you sell a home that you used for both personal and rental purposes, you are selling a tax-code-defined vacation home. Special rules apply to any gain or loss, as you will see in this article.

IRS Examiner Gives 80 Percent

During an audit, IRS examiners can use their judgment to allow or disallow pretty much whatever they want. In this first stage of the audit process, the burden of proof is on you.

Home-Office Deduction If You Operate as a Corporation

The IRS audit manual states: “If you rent all or part of your residence to your employer and use the rented portion when performing services for the employer, you cannot deduct home-office expenses attributable to the rental.” Thus, forget the rental to the corporation, and instead use the corporate-reimbursement-to-the-employee strategy for maximum benefits.


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