2024 Last-Minute Tax-Saving Vehicle Purchases
Here’s an easy question: Do you need more 2024 tax deductions? If the answer is yes, continue reading about last-minute tax-saving vehicle purchases. Next easy question: Do you need a replacement business vehicle? Consider if making last-minute tax-saving vehicle purchases could also be beneficial in this scenario. If so, you can simultaneously solve or mitigate […]
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 […]
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 […]
Bedroom Rental – Tax Implications You Need to Consider
When you rent a bedroom or two or 20, you first examine Section 280A of the tax code to determine whether your bedroom rental is: When exempt from Section 280A, your bedroom rental faces four tax code sections: As you can see, bedroom rentals travel a torturous path. Please don’t hesitate to contact our team […]
Your Guide to Deducting Long-Term Care Insurance
Long-term care costs can be substantial, and neither Medicare nor Medicaid provide comprehensive coverage for most people. Long-term care insurance can help protect your finances, and there may be ways to claim a long-term care insurance deduction for the premiums, depending on your business structure. Here are four key points to consider: If you want […]
Creating Tax Deductions for Your Smartphone
The IRS allows businesses to provide smartphones and tablets such as iPads as a tax-free fringe benefit, simplifying tax implications and eliminating the need for detailed usage records. Businesses today use mobile devices like smartphones and tablets to improve their operations and productivity. These handy tools help employees stay connected, access important information, and collaborate […]