By month: August 2023

Back Again: Dutch-Treat Business Meals—but Beware

Lawmakers reduced your deduction for legitimate business entertainment meals from 100 percent to 80 percent in 1986 and then from 80 percent to 50 percent in 1993. There’s almost no good news here, except that 50 percent is far better than zero.

ICHRA: Game Changer for Small Business Health Benefits

Although the Individual Coverage HRA (ICHRA) works for businesses of all sizes, it’s particularly helpful for small businesses with fewer than 50 employees that want to provide health care benefits to their employees. With an ICHRA, a business can reimburse individually purchased health insurance without triggering the $100-a-day-per-employee penalty.

Update on State Pass-Through Entity Taxes Beating the SALT

State pass-through entity taxes enable individual owners of partnerships, multi-member LLCs, and S corporations to get around the $10,000 limit on deducting state and local taxes, by having their pass-through entity pay state income tax due on its income and then claiming a federal deduction for the payment. Almost all states with income taxes have now enacted some form of owner-beneficial pass-through entity tax, including seven new states during 2023 alone.

Are Corporate Advances to the Owner Loans, Dividends, or Salary?

If you operate your business as a corporation, make sure to properly handle corporate advances. For the C corporation, getting this wrong can create taxable dividends. For the S corporation, it can create taxable wages.

Real Estate Investment Boot Camp

This real estate boot camp deduction is allowed to the taxpayer who is classified as being “in the business” of renting real estate, but not to the taxpayer classified as an “investor in real estate.”

Tax Primer for the U.S. Citizen Living and Working Abroad

If you are a U.S. citizen living and working abroad, you need to think about taxes, both those in the United States and those in the country where you are living and working. This article will steer you in the right direction.

9 Insights on the Individual Coverage HRA for Small Businesses

The individual coverage HRA (ICHRA) has much to offer a small business (businesses with fewer than 50 employees). We addressed many of those in ICHRA: Game Changer for Small Business Health Benefits. Here we expand on the abilities of the ICHRA to get a smile from you, the small-business owner who wants to offer health benefits to his or her employees.

Find Cash: Repair Your Properties—Don’t Improve Them

When it comes to your profits on a rental real estate property, the repair deduction can substantially outperform the capitalized improvement. The added cash comes from two sources: increased capital gains and (hopefully) the time value of money.

Know Your Tax Deadlines with This Useful PDF Tax Calendar

Don’t let tax deadlines catch you off guard! Stay organized and save more with our 2023 Federal Tax Calendar for small businesses and self-employed taxpayers. Download your calendar now!


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