The Tax Treatment of Personal Property Rentals
Here are some key points about renting personal property, which includes equipment, vehicles, and furniture. The tax treatment differs from real estate rentals, and how you classify the rental activity will affect how you report income, expenses, and potential self-employment tax. Classification of Personal Property Rentals The tax code treats personal property rentals in three […]
Avoiding the Self-Rental Trap
Let’s say you own a building. Now, let’s say that you rent this building to your business. With no tax planning, you have a self-rental, and that So, there you have it: a self-rental to your business with no tax planning, you will get the worst of both worlds. Yikes! Solution But wait—there’s a solution […]
Build Net Worth With Depreciable Antiques
Today, we would like to introduce a new business strategy that can help you build net worth by using depreciable antiques in your business. The strategy is simple: buy low, depreciate to zero, and sell high. You can achieve this by incorporating antiques into your business. For example, let’s say you’re deciding between purchasing an […]
Deducting Club Dues
Based on IRS regulations, club dues are generally not deductible if the organization’s principal purpose is to conduct entertainment activities for its members. However, there are exceptions for civic and public service organizations, such as the Lions, Rotary, Kiwanis, and Civitan clubs, which the IRS recognizes as not being primarily for entertainment. Deducting civic and […]
Decreasing Your Social Security & Medicare Taxes
Here are some important updates and strategies regarding Social Security and Medicare taxes that may significantly impact your business. These strategies can help you reduce your self-employment taxes. Social Security update For 2024, the Social Security tax ceiling increased to $168,600, resulting in a maximum Social Security tax of $20,906 for high-earners. The Social Security […]
Bedroom Rental – Tax Implications You Need to Consider
When you rent a bedroom or two or 20, you first examine Section 280A of the tax code to determine whether your bedroom rental is: When exempt from Section 280A, your bedroom rental faces four tax code sections: As you can see, bedroom rentals travel a torturous path. Please don’t hesitate to contact our team […]
Your Guide to Deducting Long-Term Care Insurance
Long-term care costs can be substantial, and neither Medicare nor Medicaid provide comprehensive coverage for most people. Long-term care insurance can help protect your finances, and there may be ways to claim a long-term care insurance deduction for the premiums, depending on your business structure. Here are four key points to consider: If you want […]
Creating Tax Deductions for Your Smartphone
The IRS allows businesses to provide smartphones and tablets such as iPads as a tax-free fringe benefit, simplifying tax implications and eliminating the need for detailed usage records. Businesses today use mobile devices like smartphones and tablets to improve their operations and productivity. These handy tools help employees stay connected, access important information, and collaborate […]
Transferring 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, consider the three options below for transferring your home to your adult child. Option 1: Make an […]
Entertainment Facility Perks for You, Your Net Worth, & Your Employees
Imagine this: your Schedule C business buys a home at the beach, uses it solely as an entertainment facility for business, pays off the mortgage, and deducts all the expenses. Now say, 10 years later, without any tax consequence to you, you start using the beach home as your own. Is this possible? Yes. Are […]