Businesses and Rentals Existing on Jan. 1 Trigger FinCEN Filings

Businesses and Rentals Existing on Jan. 1 Trigger FinCEN Filings

For existing businesses, the Corporate Transparency Act (CTA) goes into effect on January 1, 2024, and imposes a brand-new federal filing requirement on most corporations, limited liability companies, and limited partnerships and on certain other business entities.  No later than December 31, 2024, all non-exempt business entities must file a beneficial owner information report (BOI […]

2023 Last-Minute Vehicle Purchases to Save on Taxes

2023 Last-Minute Vehicle Purchases to Save on Taxes

Here’s an easy question: Do you need more 2023 tax deductions? If the answer is yes, continue reading. Next easy question: Do you need a replacement business vehicle?  If so, you can simultaneously solve or mitigate the first problem (needing more deductions) and the second problem (needing a replacement vehicle) if you can get your […]

2023 Last-Minute Section 199A Tax Reduction Strategies

199A tax reduction strategies

Remember to consider your Section 199A deduction in your year-end tax planning. If you don’t, you could end up with an undesirable $0 for your deduction amount.Here are three possible year-end moves that could, in the right circumstances, simultaneously (a) reduce your income taxes and (b) boost your Section 199A deduction. First Things First If […]

2023 Last-Minute Year-End General Business Income Tax Deductions

2023 Last-Minute Year-End General Business Income Tax Deductions

Here are six powerful business tax deduction strategies you can easily understand and implement before the end of 2023.  1. Prepay Expenses Using the IRS Safe Harbor You just have to thank the IRS for its tax-deduction safe harbors. IRS regulations contain a safe-harbor rule that allows cash-basis taxpayers to prepay and deduct qualifying expenses […]

2023 Last-Minute Year-End Tax Strategies for Your Stock Portfolio

2023 Last-Minute Year-End Tax Strategies For Your Stock Portfolio

When you take advantage of the tax code’s offset game, your stock market portfolio can represent a little gold mine of opportunities to reduce your 2023 income taxes. The tax code contains the basic rules for this game, and once you know the rules, you can apply the correct strategies. Here’s the basic gist: Avoid […]

2023 Last-Minute Year-End Retirement Deductions

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

Want to leave the US

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”

Real Estate Tax Planning

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

Safe Harbor for business

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

Business tax planning

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, […]

Uncertain Tax Position? File Form 8275 to Avoid Penalties

Uncertain Tax Position

Are you considering a bold tax position that may significantly reduce your taxes? If approved by the IRS, it’s a win. But if disapproved, be prepared to face a considerable tax penalty. The IRS imposes a 20 percent penalty for substantial tax underpayment. For instance, if the IRS finds you underpaid your taxes by $50,000, […]

Don’t Expose Yourself with Improper Use of the $75 Rule

2022 TAX RETURN FILING

The $75 rule applies to certain business expenses where you do not need a receipt. But I emphasize that this rule does not apply to all tax deductions. Many taxpayers mistakenly apply the $75 rule to all their tax deductions, which can result in a significant loss of deductions and penalties. I encourage you to […]