April 2024
BOI Reporting Unconstitutional for 65,000, but Likely Not You
You are likely on the hook to file your BOI report. The Corporate Transparency Act has been declared unconstitutional by a federal district court in Alabama, but that only applies to 65,000 businesses. Meanwhile, New York State has adopted its own beneficial ownership information reporting law that applies to limited liability companies.
Updated Blueprint for Employee-Spouse 105-HRA (Health Reimbursement Arrangement)
The 105-HRA is the medical reimbursement plan you likely want to use if (a) you report your business income and expenses on Schedule C, E, or F of your Form 1040, and (b) you can make your spouse your one and only eligible employee. Also, if you are single and operate your business as a C corporation, and if you are the one and only eligible employee of your C corporation, the 105-HRA is the medical reimbursement plan for you.
Tax Quiz—Sell Stock at a Loss to Your Daughter
What happens when you sell stock or other assets at a loss to a related party, such as your daughter? This is a tax law you need to know about.
Create Tax-Free Fringe Benefit Deductions for Your Smartphone
Do you operate your business as a corporation, a partnership, or a proprietorship, or as an LLC taxed as one of these three entities? Your choice of entity impacts whether you can create a no-hassle, tax-free fringe benefit for you and/or your employees’ smartphones. In this article, you learn the rules that apply and which ones give you the best benefits.
Five Rules for Turning Your Vacation—Even a Luxurious One—into Tax-Deductible Business Travel
The next time you plan a vacation, stop and think about how you could make it deductible. If you find a good business reason to visit that destination and you throw in enough business hours on the trip, you suddenly convert a non-deductible personal trip into a deductible business expense.
Despite Its High Cost, This Education Is Deductible
If you attend an expensive educational program, do you have to amortize the cost, or can you expense it? Further, would such a program trigger an IRS audit?
Tax Reform Doubles Down on S Corporation Reasonable Compensation
The Tax Cuts and Jobs Act tax reform gave you a new 20 percent deduction on pass-through income. For S corporation owners, your reasonable compensation plays a key role in determining your Section 199A deduction. Here, we’ll explain what the law says on reasonable compensation and how you can come out ahead.
Tax Rules for Providing Free Meals and/or Lodging to Employees
The tax rules on free meals for employees have changed to create more revenue for the government and fewer fringe benefits for employees. The big change for meals is the drop in the employer deduction, from 100 percent before 2018 to 50 percent for years 2018-2025 to zero in 2026 and beyond.
March 2024
Q&A: S Corporation Reimburses Personal Vehicle
If your S corporation reimburses you for your personal vehicle, you need to report the gain or loss on the sale of that vehicle. This article gives you two clear examples of how this works and what forms to use.
No Mercy for You When Your CPA Does Not File Your Tax Return
What happens if your certified public accountant (CPA) or other tax preparer fails to electronically file your return? You’re out of luck. The IRS and courts say you, the taxpayer, are responsible for filing your return. If your CPA fails to do so, the tax code treats you as the culprit and levies penalties against you.
Self-employed? Amend Tax Returns for up to $32,220 in Tax Credits
If you are self-employed or operate your business as a small corporation, it’s possible that you have not yet claimed your COVID-19 family and sick leave tax credits. If that’s true, take a moment or two and answer the 12 easy questions in this article to see whether you could qualify for some or all of the possible tax credits.
Your Co-owned Business Probably Needs a Buy-Sell Agreement
Do you co-own your business with one person or multiple people? If so, you should have a properly funded buy-sell agreement in place, as explained in this article.
How Long Does the IRS Have to Audit Your Returns?
The IRS can’t take forever to audit you. Once the statute of limitations expires, the IRS can’t audit your return or assess any additional tax. Most returns must be audited within three years after they were due or filed, whichever is later. But the IRS has much longer to audit returns where taxpayers severely underpay their taxes, commit fraud, or file no return at all. Moreover, there is a longer statute of limitations for certain Employee Retention Credit audits.
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?
Know Your 2024 Tax Deadlines with This Useful PDF Tax Calendar
Don’t let tax deadlines catch you off guard! Stay organized and save more with our 2024 Federal Tax Calendar for small businesses and self-employed taxpayers. Download your calendar now!
Young Adults Should Take Advantage of IRAs
Generally, young adults who contribute to traditional or Roth IRAs enhance their retirement years with more retirement income. It doesn’t take much to make this work to your advantage.
New Crypto Tax Reporting Rules Are Coming Soon
Proposed IRS regulations scheduled to go into effect for the 2025 tax year will require people and companies that help customers transfer digital assets such as Bitcoin to file a new Form 1099-DA with the IRS. This form reports information similar to that reported for stock sales, such as sales proceeds, as well as (starting in 2026) tax basis and gains and losses. The new reporting rules will apply to digital asset trading platforms, payment processors, many wallet providers, and other “digital asset brokers.”
February 2024
Ouch! The Estimated Tax Penalty Is at a 16-Year High
Due to the rise in interest rates, the non-deductible interest penalty for underpaying estimated taxes is at a 16-year high of 8 percent. Both individual and corporate taxpayers can avoid this penalty by paying enough estimated tax during the year. If this isn’t done, individual taxpayers can obtain a penalty waiver from the IRS in limited circumstances. No such relief is available for corporations.
The IRS Dirty Dozen List: More Than Just a Gimmick
The IRS’s annual Dirty Dozen list may sound like a gimmick, but taxpayers should take it seriously. It’s a road map to current IRS audit priorities and a warning to taxpayers and tax professionals to avoid fraudulent and abusive tax schemes or strategies. Use of a strategy on the list can not only result in an audit, but make it impossible to avoid substantial tax penalties.
Working Overtime? Take Advantage of Tax-Free Supper Money
The Tax Cuts and Jobs Act (TCJA) changed the landscape for a host of business meal and entertainment deductions. For supper money, the TCJA did damage, in both the short and the long term. But the deduction, albeit damaged, continues in place for tax years 2018 through 2025, before its death in 2026.
Download Your New 2024 Desktop Reference Guide Now
Download this two-page guide so you have a handy desktop reference for the 2024 corporate and individual tax rates, estate tax rates, self-employed tax rates, Social Security and Medicare tax rates, capital gains rates, standard mileage rates, standard deductions, luxury auto depreciation limits, and select retirement and IRA limits.
Download this PDF for the Already Enacted 2024 Tax Law Changes
As a subscriber, you likely know you are going to see some big tax changes this year. Some are already in place. To help you remember what they are, and to make them available for a quick look anytime you like, download this PDF.
Improper ERC Claim? Pay Back 80% of the ERC and Keep the Rest
First question: Is your ERC claim improper? Are you sure? If you’re sure, the IRS has a proposition for you. Pay back 80 percent of all your ERC claims, and keep the remaining 20 percent. But hurry, this deal expires soon.
Updated Jan. 2024: Download IRS Key Contact Information and Links
Would you like to have, at your fingertips, updated IRS key contact info and helpful links for information about amended returns, estate and gift taxes, tax transcripts, power of attorney, stimulus checks, tax help for businesses, and many other topics? If so, download the PDF linked in this article.
The Added Tax When You Sell Qualified Improvement Property (QIP)
You need to think about the sale of your rental property when you claim depreciation on your qualified improvement property. Gains may be subject to higher-than-expected tax rates due to Section 1245 and 1250 ordinary income recapture and other factors. Planning your depreciation methods can significantly impact your current tax liabilities and long-term taxable gains when you sell.
Options for Overfunded 529 College Savings Accounts
Discover flexible solutions for your overfunded 529 College Savings Plan, including changing the beneficiaries, using the money for other than college, and rolling the money over to a Roth IRA.
January 2024
13 Answers on the New 2024 CTA Required BOI Reporting to FinCEN
The Corporate Transparency Act is now in effect. It requires most small defined corporations, LLCs, and some other business entities to file a beneficial owner report (BOI) with the Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN). Here are 13 answers to some common questions that tax pros and business owners have about the new law.
Would Your Tax Pro Turn You in for a Whistleblower Reward?
What can happen if you tell your tax pro you are engaging in tax evasion or fraud? The answer may not be what you hope for. The tax pro can report you to the IRS through the whistleblower program and receive a lucrative reward. Although the tax pro must consider his ethical and legal obligations, he would serve the public interest by turning you in.
Navigating Health Care Sharing Ministries
When you enter the realm of health care sharing ministries, you join a community where like-minded individuals unite to share medical costs. It’s not your typical health insurance. You will discover why, for many, the lower monthly expenses make health care sharing ministries an attractive option, even without traditional tax benefits.
Download “Real Estate Rentals: Recent Tax Insights”
Dive into our “Real Estate Rentals: Recent Tax Insights” PDF to unlock key strategies for rental property success. This guide offers a comprehensive look at maximizing profitability, understanding investor and dealer roles, and effective tax-deduction tactics.
New 1099-K Filing Rules Delayed Again
Fearing chaos, the IRS has acted on its own to delay implementation of new tax reporting requirements that were scheduled to apply to third-party settlement organizations such as PayPal beginning with the 2023 tax year. The old rules for filing Form 1099-K will continue to apply for 2023, and a new transition rule will go into effect in 2024. Full implementation of the new requirements won’t occur until 2025.
Odds Are Tax Law Does Not Consider You a Professional Gambler
Unlike recreational gamblers, professional gamblers get to deduct all their gambling losses and expenses, up to their annual winnings, without itemizing. To qualify as a professional gambler, you must (1) gamble regularly and continuously throughout the year, and (2) gamble with a primary purpose of earning a profit.
2024 Retirement Plans Desktop Reference for One-Person Businesses
Download your PDF copy of the 2024 retirement plans desktop reference for the one-person business operating as a sole proprietorship or corporation.
Buy or Lease a Business Vehicle: Which Costs Less?
Although personal considerations come into play, the choice between buying and leasing a vehicle for your business ultimately boils down to cost. So it’s essential to understand how to compute and compare the costs and to have the right tools to make those computations easy. This article gives you what you need.
