Do you Qualify for the Corporate Owner’s Home-Office Deduction?
Let’s discuss some important information regarding your potential home-office tax deductions. As an owner of a corporation and an employee within that corporation, you may be eligible for a home-office deduction if: you use the office in your home for the convenience of your employer corporation, you comply with the tax code rules for deducting […]
Kiddie Tax – What it is and How to Avoid it
Let’s use this opportunity to touch base regarding the federal income tax rules on the “kiddie tax” and its potential impact on your financial strategy for your child(ren). In brief, the kiddie tax was enacted by Congress to prevent parents from passing investment income to their children, who typically have a lower tax rate. Under […]
Electric Vehicles: An Overview of State Benefits & Rebates
As an integral part of our commitment to keep you updated on matters that could affect your financial decisions, we want to inform you of recent changes and available incentives on electric vehicles at both the federal and state levels. While lawmakers extended the federal tax credit for personal-use electric vehicles through 2032, they restricted […]
You May be Able to Claim 2020 COVID Sick and Family Leave Credits
There are potential COVID-19 sick and family leave tax credits you may have overlooked on your 2020 tax return. You might be eligible for up to $15,110 in tax credits, and the good news is it’s not too late to claim them. If you’re self-employed or running a corporation, there’s a chance you failed to […]
Home Office Deductions for Cleaning Services
We want to offer some insights regarding an important tax aspect related to the home office deductions for cleaning services. As you have a home office that qualifies for a home-office deduction and you employ a cleaning service who maintains both your home and your home office, there are a couple of tax considerations to […]
Can Your Kids Get Tax-Free Education Benefits if You Hire Them?
If your children work in your business, consider giving them tax-free education fringe benefits. Doing this right creates tax deductions for the business, and tax-free fringe education benefits for the child. You can accomplish this without a Section 127 plan when your child needs the education to do the job for your business or comply […]
Overview of 2023 Business Meals and Entertainment
We want to provide you with the latest updates on the business meal deduction for 2023 and beyond. As you may already know, there have been some significant changes to business meal deductions for 2023 and beyond. The deduction for business meals has been reduced to 50 percent, a significant change from the previous 100 […]
Plan Your Passive Activity Losses for Tax-Deduction Relevance
In 1986, lawmakers drove a stake through the heart of your rental property tax deductions (The Tax Reform Act of 1986). That stake, called the passive-loss rules, causes myriad complications that now, 37 years later, are still commonly misunderstood. The Trap In 1986, lawmakers made you shovel your taxable activities into three basic tax buckets. Looking […]
The Tax Consequences of a Short Sale of Your Residence
The real estate boom appears to be over for now. Morgan Stanley predicts that house prices could fall by 10 percent by the end of 2024, perhaps twice as much in a worst-case scenario. Homeowners who purchased their homes at the top of the market could be in trouble, especially if the U.S. falls into […]
Crowdfunding – Is It Taxable?
Crowdfunding is a national and international phenomenon. Over $17 billion is raised yearly in North America through world-famous websites such as GoFundMe and Kickstarter. But is crowdfunding taxable? All this crowdfunding activity leads to an obvious question: Is the money raised this way taxable income for the recipients? You might be surprised to learn that […]