Three Ways You Can Deduct Your Dog or Cat
Dogs, cats, and other household pets are expensive. Owners spend an average of $1,270 to $2,800 to own a dog. Can you ever deduct these costs from your taxes? The expenses for a family pet that provides you only with love and companionship are never deductible. They are purely personal expenses. But it is possible […]
HSA Contributions Beyond Age 65
Do you have a health savings account (HSA)? If so, you have one of the best tax-advantaged accounts. HSAs provide a unique triple tax benefit: Indeed, there is only one thing wrong with HSAs: you cannot make contributions after you enroll in Medicare (usually at age 65). You probably would like to continue contributing to […]
Maximize The QBI Deduction Before It’s Too Late!
As you may be aware, the qualified business income (QBI) deduction introduced by the Tax Cuts and Jobs Act provides a valuable tax-saving opportunity for business owners like yourself. Unfortunately, the QBI benefit expires after 2025, so there is a limited window of time to maximize this deduction. The qualified business income deduction can be […]
IRS Penalties & Strategies for Relief
If you’ve recently been billed by the IRS with the claim that you owe a penalty for late filing, late payment, or missed employment tax deposits, we urge you to pause before making any payment. You may not have to pay that penalty at all. The IRS often imposes steep penalties for filing tax returns […]
The Tax Treatment of Personal Property Rentals
Here are some key points about renting personal property, which includes equipment, vehicles, and furniture. The tax treatment differs from real estate rentals, and how you classify the rental activity will affect how you report income, expenses, and potential self-employment tax. Classification of Personal Property Rentals The tax code treats personal property rentals in three […]
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 […]
Build Net Worth With Depreciable Antiques
Today, we would like to introduce a new business strategy that can help you build net worth by using depreciable antiques in your business. The strategy is simple: buy low, depreciate to zero, and sell high. You can achieve this by incorporating antiques into your business. For example, let’s say you’re deciding between purchasing an […]
Deducting Club Dues
Based on IRS regulations, club dues are generally not deductible if the organization’s principal purpose is to conduct entertainment activities for its members. However, there are exceptions for civic and public service organizations, such as the Lions, Rotary, Kiwanis, and Civitan clubs, which the IRS recognizes as not being primarily for entertainment. Deducting civic and […]
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 […]
Decreasing Your Social Security & Medicare Taxes
Here are some important updates and strategies regarding Social Security and Medicare taxes that may significantly impact your business. These strategies can help you reduce your self-employment taxes. Social Security update For 2024, the Social Security tax ceiling increased to $168,600, resulting in a maximum Social Security tax of $20,906 for high-earners. The Social Security […]