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 […]

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, […]

Avoid This Family Member S Corporation Health Insurance Mistake

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I’m reaching out to remind you of two important issues related to health insurance deductions for S corporations. First, if you own more than 2 percent of an S corporation and provide health insurance coverage, there are three steps you need to follow to claim a deduction: Step 1. The cost of the insurance must […]

Plan Your Passive Activity Losses for Tax-Deduction Relevance

Tax Deductions

In 1986, lawmakers drove a stake through the heart of your rental property tax deductions. That stake, called the passive-loss rules, causes myriad complications that now, 37 years later, are still commonly misunderstood.  The Trap  In 1986, lawmakers made you shovel your taxable activities into three basic tax buckets. Looking at the buckets from a […]

6 Tax Deductions That Can Significantly Lower Your Taxes As A Real Estate Investor

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Real estate is a rewarding investment that helps buyers diversify their portfolios and accumulate wealth. However, as with most major purchases and investments, real estate comes with its share of taxes. The IRS provides opportunities to deduct various business expenses to help minimize your tax burden. Here are six ways to lower your taxes as […]