Top Sole Proprietorship Retirement Plans to Reduce 2024 Tax Bill
Are you looking for ways to reduce your 2024 tax bill while securing your financial future? Setting up a self-employed retirement plan could be your solution—and it’s not too late! You have several options that can provide significant tax savings, including the following Top Sole Proprietorship Retirement Plans: Each plan has unique benefits depending on […]
Triple Tax Advantages: Reimburse Employee-Spouse for Health Insurance
If you operate a sole proprietorship or a single-member LLC taxed as a proprietorship and your spouse is your only eligible employee, you can take advantage of tax-free health insurance reimbursements while reducing your tax liability. Key Tax Benefits By reimbursing your employee-spouse for health insurance and medical expenses, you can achieve up to four […]
Tax Saving Tips for Small Businesses
Running a small business can be hard, but your taxes shouldn’t be! Find tax saving tips for small businesses below and how to get the most out of this tax filing season. Almost the Last Chance to Claim the 2021 Employee Retention Credit! If your business has not yet claimed the 2021 Employee Retention Credit […]
Last Chance to Claim the 2021 Employee Retention Credit
If your business has not yet claimed the 2021 Employee Retention Credit (ERC), you still have time—but you must act soon. What Is the ERC, and How Much Can You Claim? The ERC is a refundable tax credit designed to support businesses that retained employees during the COVID-19 pandemic. For the 2021 tax year, eligible […]
How to Correctly Pay Yourself and Take Cash from your Business
A common question among business owners is how to pay themselves from their businesses properly. The correct method depends on your business structure, so I wanted to give you this quick guide to help you navigate this issue and manage paying yourself cash from your business. Sole Proprietors and Single-Member LLCs Partnerships and Multimember LLCs […]
Real Estate Professional Status & Passive Losses
Deducting your rental property tax losses against your other income is tricky, as you likely know. You have to get the tax law to treat you—say, a computer engineer—as a tax-code–defined real estate professional (IRS publication 925 discusses passive activity and At-Risk Rules and page 8 further explains Real Estate Professional Status). Let’s say you […]
2024 Last-Minute Medical Plan Tax Strategies
All small-business owners with one to 49 employees should have a medical plan for their business. Sure, it’s true that with 49 or fewer employees, the tax law does not require you to have a plan, but you should. When you have 49 or fewer employees, most medical plan tax rules are straightforward. Here are […]
2024 Last-Minute Business Income Tax Deductions
The purpose of this blog post is to reveal how you can get the IRS to owe you money through smart business tax deduction strategies. Of course, the IRS will not likely cut you a check for this money (although in the right circumstances, that will happen), but you’ll realize the cash when you pay […]
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 […]
Worker Classifications & Why It Matters
The Department of Labor enforces the Fair Labor Standards Act (FLSA), the federal law that requires most employers to pay employees a minimum wage and non-exempt employees time-and-a-half for overtime. Understanding worker classifications is crucial for compliance with these regulations. The key word here is “employee.” FLSA does not apply to independent contractors. They need […]