By month: September 2019
When planning your Section 199A tax deduction, avoid difficult calculations and save time by using the new . Inside this article, you find the rules you need to know to find your QBI, Section 199A wages, and Section 199A property that can figure into your Section 199A deduction possibilities.
Failure to use an accountable plan for your employee expense reimbursements (including yourself if you operate as a corporation) turns those improperly reimbursed expenses into taxable wages. In other words, by failing to comply with the accountable plan rules, you turn the tax-free reimbursement into taxable W-2 wages. That’s about as ugly as it can get.
You can use a Section 127 education plan to obtain tax benefits for yourself (or your corporation) while you help your employee-grandchild through college or other training.
Many people just like you are self-employed and living and working abroad. Does your business income still qualify for the Section 199A deduction? This article tells you the answer to that question and describes other big-dollar tax breaks you might be entitled to receive.
You have probably read that the home-office deduction increases your chances of IRS audit. We’ve read that, too, but we don’t believe it. Regardless, there are a few things you can do to make your home office less likely to ever appear in an audit.
You’re eligible for a generous 30 percent residential tax credit when you install solar equipment on a residence and have it in use before midnight on December 31, 2019. The IRS instructions for claiming the credit are not as clear as you would like. But nicely, the tax code reveals the answer.
Once you turn age 70 1/2, the tax code mandates that you withdraw a tax code–defined required minimum distribution (RMD) from your traditional IRA. But by using the RMD or other IRA distribution with a qualified charitable distribution (QCD), you can eliminate the RMD tax bite, possibly reduce your Medicare premiums and income taxes on your Social Security benefits, and more.
There’s no excuse for it, but how to treat the payroll taxes (Social Security, Medicare, and federal unemployment taxes (FUTA) when the S corporation pays for or reimburses health insurance for the more-than-2-percent shareholder-employee sits in muddy waters—but perhaps only until you read this article.