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 […]
Shutting Down Your C Corporation? Here’s What You Need to Know
If you are approaching corporate liquidation, there are several tax implications that you need to be aware of. Complete liquidation of a C corporation is when it ceases to be a going concern, winds up its affairs, pays its debts, and distributes its remaining assets to the shareholder(s). In tax terms, the corporation redeems all […]
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 […]
Do You Owe Self-Employment Tax on Airbnb Rental Income?
Do you owe self-employment tax on Airbnb rental income? That’s a good question. In Chief Counsel Advice (CCA) 202151005, the IRS opined on this issue. But before we get to what the IRS said, understand that the CCA’s conclusions cannot be cited as precedent or authority by others, such as you or your tax professional. […]
Grouping 101: Tax Strategy for Owners of Multiple Businesses
When you own more than one business, you need to consider the grouping rules that apply for passive-loss purposes. Should one of your businesses lose money, you may not deduct the losses from that business during the current tax year unless you materially participate in the business or, if grouped, materially participate in the group; […]
Get Ready to Say Goodbye to 100 Percent Bonus Depreciation
All good things must come to an end. On December 31, 2022, one of the best tax deductions ever for businesses will end – 100 percent bonus depreciation. Since late 2017, businesses have used bonus depreciation to deduct 100 percent of the cost of most types of property other than real property. But starting in […]
Claim Your 2020 and 2021 Employee Retention Credit (ERC)
