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 […]

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 […]

The IRS Dirty Dozen List: More Than Just a Gimmick

The IRS Dirty Dozen List: More Than Just a Gimmick

Have you heard about the enormous tax savings you can reap by investing in a Maltese individual retirement arrangement or utilizing Puerto Rican captive insurance for your business? Before you invest your hard-earned money in these or other highly promoted tax schemes, you should check the IRS Dirty Dozen list. For over 20 years, the […]

Options for Overfunded 529 College Savings Accounts

529 college savings plan

You can accumulate federal income-tax-free earnings with a Section 529 college savings plan account.  Then, you can take federal-income-tax-free withdrawals to cover qualified education expenses, usually for college.  Great! But what if your designated account beneficiary decides not to attend college? What are your options, and what are the federal income tax consequences for those […]

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 […]

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, […]