Tax Plan: Buy $500,000 of Goods on December 20 and Expense Them
If your business sells merchandise, there may be a valuable year-end tax planning opportunity that many small-business owners overlook. Under today’s tax rules, many qualifying small businesses can deduct the cost of inventory when it is purchased and paid for—even if the goods remain on the shelf at year-end. But there is one critical requirement: […]
How to Get the IRS to Pay Your Attorney Fees
If you successfully challenge the IRS, you may be able to recover your attorney fees and other professional costs—but only if you meet several strict requirements. One of the biggest hurdles is your net worth. Individuals generally qualify only if their net worth does not exceed $2 million. Married couples filing jointly have a $4 […]
When Self-Created Intangibles Are Taxed as Ordinary Income
If you plan to sell a business or an intangible asset, you need to understand a critical tax rule that can significantly increase your tax bill. Tax law treats many self-created intangible assets as non-capital assets. This treatment means you must report the gain as ordinary income instead of lower-taxed long-term capital gain. This rule […]
Taxes 2021: 7 Upcoming Tax Law Changes
Staying up-to-date with tax changes can feel overwhelming, especially when you are unfamiliar with the process. Tax laws change regularly, and after a unique year of living through the pandemic and various economic crises and changes, there are a number of upcoming changes you should be aware of. It may seem early to be thinking […]