2023 Last-Minute Year-End Retirement Deductions
The clock continues to tick. Your retirement is one year closer. You have time before December 31 to take steps that will help you fund the retirement you desire. Here are five things to consider. 1. Establish Your 2023 Retirement Plan First, a question: Do you have your (or your corporation’s) retirement plan in place? […]
Want to Leave the U.S.? You May Have to Pay These Taxes
When you leave the U.S. to live in another country, you essentially have two choices from a tax perspective, both of which can cost you a pretty penny. First, you can simply leave the country and take up residence elsewhere. But if you choose this option, beware: the U.S. continues to tax you on your […]
Defining “Real Estate Investor” and “Real Estate Dealer”
I have great news! You can have in your real estate portfolio both investor and dealer properties. This distinction is significant for tax purposes. Here’s a snapshot of the potential tax differences: Suppose you profit $90,000 from a property sale: As a dealer, your tax could be up to $46,017 if you’re […]
Act Now! Get Your Safe-Harbor Expensing in Place
For 2024, you can elect the de minimis safe harbor to expense assets costing $2,500 or less ($5,000 with audited financial statements or similar). The term “safe harbor” means that the IRS will accept your expensing of the qualified assets if you properly abided by the safe harbor rules. The de minimis safe harbor, when […]
Test Your Tax IQ: Deducting More Than One Business Vehicle
Contrary to popular belief, the IRS does not limit business owners to claiming deductions on only one business vehicle. You might maximize tax benefits by using multiple vehicles for business purposes. This is particularly true when you use the vehicles predominantly (more than 50 percent) for business, you drive more business miles than your spouse, […]
How to Stay Away from the Dark Side While Considering a C Corporation
Back in 1980, over 50% of businesses filed as C Corporations or a corporation in which the shareholders are taxed separately from the entity. However, the number of businesses choosing the structure of a C-corp has been steadily declining, and most U.S. businesses today do not pay the corporate income tax. Instead, they’re what’s known as pass-through businesses, […]