Did You Overfund a Section 529 Plan? Consider a Roth IRA Rollover

Did You Overfund a Section 529 Plan

Have you established, or are you considering, a Section 529 savings plan for a child, grandchild, or other family member? Such plans are a great way to help pay for a person’s college education. Contributions are not federally tax deductible, but they grow tax-free, and you can withdraw them tax-free to pay higher education expenses. […]

Tax Reform Doubles Down on S Corporation Reasonable Compensation

Tax Reform Doubles Down on S Corporation Reasonable Compensation

From 2018 to 2025, the Tax Cuts and Jobs Act is offering a 20 percent deduction on pass-through business income, with specific eligibility criteria. This deduction impacts the choice of entity. For instance, should you operate as a sole proprietorship or an S corporation? The Importance of Reasonable Compensation When operating your business as an […]

Businesses and Rentals Existing on Jan. 1 Trigger FinCEN Filings

BOI Reporting

For existing businesses, the Corporate Transparency Act (CTA) has come into force as of 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 […]

Create Tax-Free Fringe Benefit Deductions for your Smartphone

Create Tax-Free Fringe Benefit Deductions for your Smartphone

I hope you can benefit from this fringe benefit opportunity related to business smartphones.  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. Eligibility. This benefit applies to corporations, partnerships, and other entities, and it can […]

Tax Rules for Providing Free Meals and/or Lodging to Employees

Tax Rules for Providing Free Meals and or Lodging to Employees

If you’re wondering about tax-free treatment for employer-provided meals and lodging, you may find the following overview helpful. Under Section 119 of the Internal Revenue Code, businesses can offer employees tax-free meals and/or lodging, provided they meet certain conditions. Tax-free means that such benefits are not subject to federal income tax for the employee, nor […]

Five Rules for Turning Your Vacation-Even a Luxurious One into Tax-Deductible Business Travel

Five Rules for Turning Your Vacation-Even a Luxurious One into Tax-Deductible Business Travel

Here’s an idea: how about transforming your next vacation into business travel? With careful planning, your transportation to any destination could be fully deductible. This includes airfare—even first-class—luxury hotel stays, and cruise expenses. If you can tie your travel to business purposes, you can enjoy substantial tax savings, depending on your tax bracket. Two Main […]

NEW Crypto Tax Reporting Rules Are Coming Soon

New Crypto Tax Reporting Rules

If you invest or trade in Bitcoin, non-fungible tokens (NFTs), Stablecoins, or other digital assets, prepare for sweeping new tax reporting requirements. Congress wants the IRS to crack down on taxpayers who buy and sell crypto but don’t report or pay tax on their gains. To do so, it wants people and companies that facilitate […]

Young Adults Should Take Advantage of IRAs

Young Adults Should Take Advantage of IRAs

As we navigate the complexities of financial planning, one opportunity stands out for young adults: individual retirement accounts (IRAs). With the 2023 tax-year contributions deadline fast approaching, on April 15, 2024, now is the perfect time to consider how you can leverage an IRA. Traditional and Roth IRAs: A Brief Overview Both traditional and Roth […]

How Long Does the IRS Have to Audit Your Returns?

How Long Does the IRS Have to Audit Your Returns

Nobody wants to spend their whole life looking over their shoulder, wondering if the IRS will audit them. Luckily, there is a statute of limitations on IRS audits and tax assessments. Once the limitations period expires, the IRS can’t audit your return or assess any additional tax. You may have heard that the statute of […]

Q&A: Deducting a loss from an Airbnb Bedroom Rental

Q&A Deducting a loss from an Airbnb Bedroom Rental

When you rent a bedroom in your home and that rental unit creates a tax loss, can you deduct the loss? Yes, if you meet the four technical requirements listed below: You used the bedroom as a hotel unit because it was regularly available on a vacation rental site like Airbnb for occupancy by paying […]

Ouch! The Estimate Tax Penalty Is at a 16-Year High

Ouch! The Estimate Tax Penalty Is at a 16-Year High

The United States has a “pay as you go” tax system in which payments for income tax (and, where applicable, Social Security and Medicare taxes) must be made to the IRS throughout the year as income is earned, whether through withholding, by making estimated tax payments, or both. You suffer an estimated tax penalty if […]

Working Overtime? Take advantage of Tax-Free Super Money

Working Overtime? Take advantage of Tax-Free Super Money

Tax law often discriminates against company owners, granting them no or fewer fringe benefits. But you, the owner, are not discriminated against when it comes to supper money. It works like this: The supper money fringe benefit is for defined employees. The IRS supper money rule states that the term “employee” for this purpose means […]