By month: September 2021

Raise Hell: Save Your Employee Retention Credit

IRS Notice 2021-49 disallowing the employee retention credit to more than 50 percent owners who have certain living relatives has to be a mistake. It’s too illogical to stand. In fact, you have to question whether the notice is technically correct.

Vaccinated? Claim Tax Credits for Your Employees and Yourself

If you encourage your employees to get the COVID-19 vaccination by giving them paid time off through September 30, 2021, you can collect refundable sick and family leave tax credits of up to $17,511 per employee. The credit is also available if an employee takes time off to help family or household members get vaccinated or recover from side effects of the vaccination. Similar credits are available if you are self-employed and have no employees.

Is a Property Fix-up and Sale an Investor or a Dealer Property?

If you buy a property, fix it up, and then sell it, is that property a dealer or an investor property? The classification boils down to your facts and circumstances. That makes it a tough call for both you and your tax preparer. And if investor status produces long-term capital gains, you want to avoid dealer status, because that causes ordinary income and self-employment taxes.

Updated 2021 Tax Resource Guide; Download Now

Download this newly updated two-page guide so that you have a handy desktop reference with the 2021 corporate and individual tax rates, estate tax rates, self-employed tax rates, Social Security and Medicare tax rates, capital gain rates, standard mileage rates, standard deductions, luxury auto depreciation limits, and select retirement and IRA limits.

Refresher: Principal Residence Gain Exclusion Break (Part 2 of 3)

Part 2 of our three-part refresher course offers more good news about the principal residence gain exclusion of up to $250,000 ($500,000, if married). In this article, you will find liberal rules that give you a prorated exclusion when you or other qualified individuals experience a change in place of employment, health issues, or unforeseen circumstances. You also will learn how business or rental use affects the exclusion and how to treat vacant land that is part of your personal residence.

1099s Tell Story on Dentist

Here’s a sad story of a dentist who did not file his tax returns. Of course, as you know, the failure to file tax returns often gets the IRS’s attention. In this case, it did, and this dentist suffered accordingly.

NUA Choice: A Tax Strategy to Consider If You Own Company Stock

If you are an employee with company stock in your retirement plan, you can use the net unrealized appreciation tax treatment to save money on your taxes.

Why IRS Audit Technique Guides Are Helpful Business Resources

IRS Audit Technique Guides provide valuable insight as to how the IRS conducts audits. The guides also provide helpful guidance in developing financial best practices for your business.

IRS Private Letter Rulings: Are They Worth It?

The IRS issues private letter rulings (PLRs) to answer taxpayers’ questions about how to apply the tax law to a set of facts or how to obtain relief for late filings and other errors. A PLR is binding on the IRS as to the taxpayer who receives it, but no others. PLRs are expensive, require a detailed application, and can take months to get. You can often find much cheaper and easier alternatives, especially if you need the IRS to waive a missed deadline.


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