Info on the Individual Coverage HRA for Small Businesses
If you are thinking about offering your employees the new individual coverage health reimbursement arrangement (ICHRA for small businesses), take a moment to read the insights below. Class size rule. You face the class size rule only if you offer a traditional group health plan to one class of employees and an ICHRA to another. […]
Repair Business or Rental Buildings for Tax Deduction Purposes
The distinction between repair expenses and improvement costs can impact your tax benefits. it is important to know the difference between the tax benefits you can receive. You can make repairs to your business building, or make improvements (classified as capital expenditure) and then deduct depreciation. Both have different cash savings. The tax law categorizes […]
Does Your Business Have Fewer Than 50 Employees? Consider the QSEHRA Health Plan
As a small employer (fewer than 50 employees), you should consider the Qualified Small Employer Health Reimbursement Arrangement (QSEHRA health plan) as a good way to help your employees with their medical expenses. If the QSEHRA is indeed going to be your plan of choice, then you have three good reasons to get that QSEHRA […]
Four Things to Know About Employing Your Spouse
If you own your own business and operate as a proprietorship or partnership (wherein your spouse is not a partner), one of the smartest tax moves you can make is employing your spouse. But the tax savings may be a mirage if you don’t pay your spouse the right way. And the arrangement is subject […]
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 […]