Ways Rental Property Owners Can Avoid the Net Investment Income Tax
The federal income tax tables do not give you your “true” tax rates. Here’s one example: the net investment income tax (NIIT). It’s a hefty 3.8 percent on top of what you pay according to the table rates. If you own rental property, you’re one of the NIIT’s prime targets. You pay the NIIT only […]
How to Deduct Business Travel Expenses by Different Transportation Methods
Say you are going to travel from your home in Washington, D.C., to San Francisco. Will the tax law allow you to travel to San Francisco by car, train, plane, or boat, your choice? Answer. Yes. But special rules apply. You need to know these rules to guarantee your business travel expenses. Travel by Car […]
New 2024 Businesses and Rentals Initiate FinCEN Filings
After years of delays, the first stage of the Corporate Transparency Act (CTA) goes into effect on January 1, 2024. It imposes a new federal filing requirement for most corporations and limited liability companies (LLCs) formed in 2024 and later. The CTA’s purpose is to prevent the use of anonymous shell companies for money laundering, […]
Know What the IRS Say About Deducting More Than One Vehicle
Contrary to popular belief, the IRS does not limit business owners to claiming deductions on only one business vehicle. Here are some resources and information on deducting more than one vehicle. Small businesses might maximize tax benefits by using multiple vehicles for business purposes. This is particularly true when the vehicles are used predominantly (more […]
Moving to the United States? Tax Info for Foreigners
Say you have a friend who moved to the U.S. from Greece. Here is a high-level look at eight U.S. foreigner tax considerations your friend needs to know: Tax residency. A foreign individual’s income tax obligation in the U.S. hinges on their tax residency status—whether they are a resident alien or non-resident alien. Resident aliens […]
Tax Obligations for U.S. Citizens Working or Living Abroad
Many employees take opportunities to live and work in various parts of the world but may have concerns about their U.S. tax obligations for working or living abroad. We want to alert you to the tax implications you might encounter as a U.S. citizen living or working abroad. We’re going to use Switzerland in our […]
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 […]