Recent Feature Headlines


November 2022

Update 105-HRAs, MSAs, and FSAs to Allow Over-the-Counter Drugs

You may want to amend your existing health reimbursement accounts, medical savings plans, and flexible spending accounts to allow non-prescription over-the-counter drugs and menstrual care products.


2022 Last-Minute Vehicle Purchases to Save on Taxes

Here’s an easy question: Do you need more 2022 tax deductions and credits? If so, continue reading. Next easy question: Do you need a replacement business vehicle? If so, you can simultaneously solve or mitigate both the first problem (needing more deductions and credits) and the second problem (needing a replacement vehicle), but you need to get your replacement vehicle in service on or before December 31, 2022. This article helps you find the right vehicle for the deduction or credit you desire.


2022 Last-Minute Year-End Tax Deductions for Existing Vehicles

Yes, December 31 is just around the corner. That’s your last day to find tax deductions available from your existing business and personal (yes, personal) vehicles that you can use to cut your 2022 taxes. In this article, you will learn how to find and release tax deductions that the tax code trapped inside your existing business cars, SUVs, trucks, and vans. And you will learn how the Tax Cuts and Jobs Act makes it possible for you to find a big deduction from your existing personal vehicle (note the terms “existing” and “personal”).

 


Beats Google—PDF Download of Every State’s Tax Department Info

Download this PDF to have at your fingertips for each of the 50 U.S. states: the income tax phone numbers for individual and business tax returns and the website URL for the taxing agencies or departments.


2022 Last-Minute Year-End General Business Income Tax Deductions

Your year-end tax planning doesn’t have to be hard. This article takes your daily business activities and identifies easy year-end tax-planning moves you can make today. Our six strategies will increase your tax deductions or reduce your taxable income so Uncle Sam gets less of your 2022 cash.


2022 Last-Minute Section 199A Tax Reduction Strategies

Remember to consider your Section 199A deduction in your 2022 year-end tax planning. If you don’t, you could end up with a useless $0 for your deduction amount. We’ll review three year-end moves that simultaneously (a) reduce your income taxes and (b) boost your Section 199A deduction.


2022 Last-Minute Year-End Tax Strategies for Marriage, Kids, and Family

If you are thinking of getting married or divorced, you need to consider December 31, 2022, in your tax planning. Here’s a question: Do you give money to family or friends (other than your children who are subject to the kiddie tax)? If so, you need to consider the zero-taxes planning strategy. And now, consider your children who are under age 18. Have you paid them for work they’ve done for your business? Have you paid them the right way? You’ll find the answers here.


2022 Last-Minute Year-End Retirement Deductions

Does your business have a retirement plan for you and, if you have employees, your employees? It should. You have more new reasons in 2022 to get your retirement plan in place and perhaps make changes in existing plans.


2022 Last-Minute Year-End Medical Plan Strategies

Are you eligible for COVID-19 tax credits for yourself and/or your employees? Have you reimbursed your employees (including your employee spouse) as stipulated in your health reimbursement arrangements? And if you operate as an S corporation, do you have your health insurance set up correctly for your best tax deduction? In this article, we help with these matters and more.


2022 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 2022 income taxes. The tax code contains the basic rules for this game, and once you know the rules, you can apply the correct strategies. In addition to saving taxes with the game of offset, you can avoid paying taxes on stock appreciation by gifting stock to charity, your parents, and your children who are not subject to the kiddie tax.




October 2022

Answers to 12 Employee Retention Credit (ERC) Questions

If you had W-2 employees in 2020 and/or 2021, you need to look at the Employee Retention Credit (ERC). This is true whether you already filed for it or are thinking of filing for it. See the 12 answers in this article for insights into the ERC.


Buying an Electric Vehicle? Know These Tax Law Changes

If you purchase an all-electric vehicle or a plug-in hybrid electric vehicle, you can qualify for a tax credit of up to $7,500. But the newly enacted Inflation Reduction Act has thoroughly revamped the credit beginning August 17, 2022, with additional changes taking place in 2023 and 2024. If you are planning to take advantage of this credit, there’s much to know, as you will learn here.


New Law Improves Energy Tax Benefits for Biz Owners and Landlords

The newly enacted Inflation Reduction Act expands and extends tax credits for installing solar panels, electric vehicle chargers, or other renewable energy systems in commercial buildings and residential rental property. It also increases the tax deduction for making commercial buildings more energy-efficient.


Baseball Cards and Memorabilia as Office Decorations

The proper tax deduction treatment for decorating a business office with a baseball card and memorabilia collection comes from the courts in their decisions on depreciating antiques.


Avoid These Common Mistakes When Converting to an S Corporation

Are you thinking of converting your business to an S corporation? The IRS will be watching you closely. Learn how to avoid the common mistakes that many business owners make.


Get Ready to Say Goodbye to 100 Percent Bonus Depreciation

One hundred percent bonus depreciation ends on December 31, 2022. Does this mean you should rush out and purchase business property before 2022 ends to take advantage of the 100 percent bonus? Not necessarily. For many businesses there is an alternative that is not going away, and this alternative can be as good as bonus depreciation: IRC Section 179 expensing.


Home-Office Deduction—Pool Table in the Room

Does the pool table located in the room you use for a home office destroy the home-office deduction, or can you exclude the square footage occupied by the pool table from the business square footage?


The Ship Has Not Sailed on Qualified Opportunity Zone Investments

Some of the tax benefits of the federal qualified opportunity zone program have expired, but investing in qualified opportunity funds can still provide significant tax deferral and tax reduction for all types of capital gains.


Can Rental Income Terminate My S Corporation?

At a meeting of landlords, the guest lawyer stated that the S corporation terminates with too much passive income. Many attendees heard this comment incorrectly. The too-much-passive-income termination problem applies only to certain S corporations.




September 2022

More on Earning 9.62 Percent Tax-Deferred

Inflation is seldom a good thing. But when it comes to investing, the U.S. Treasury Department has an inflation opportunity that’s downright amazing. You can buy bonds that pay 9.62 percent—tax-deferred—with no downside risk, and with no state or local income taxes when you cash them in.


New Law: Business Tax Credits for Your Electric Vehicle Purchases

If you purchase an electric car or a plug-in hybrid electric vehicle to use in your business, you can qualify for a brand-new commercial clean vehicle tax credit worth up to a whopping $40,000. But that’s not all.


Learn How to Claim the ERC When You Own Multiple Entities

If you have not claimed the employee retention credit (ERC), you can amend your 2020 and 2021 payroll tax returns to claim it. In this article, you will learn what’s needed and what happens when you have to combine business entities for purposes of the ERC.


Defeat the $10,000 SALT Cap with the PTE Tax (Part 2)

Already, 29 states have enacted pass-through entity taxes as a workaround to the $10,000 cap on deducting state and local taxes, but each has different requirements that business owners must comply with to take advantage of the deduction.


S Corporation Reimburses the Owner-Employee for the Home Office

The home-office deduction continues to be misunderstood in a variety of ways. In this article, the taxpayer’s CPA tells her that there’s no tax benefit to the home-office deduction for an S corporation and that the home-office deduction applies only to the self-employed.


Cash In: Beat the Taxman with 11 Tax-Free Income Breaks

Do you like the phrase “tax-free”? If so, spend some time with this article because it shows you 11 tax-free income breaks.


New Law: New and Improved Energy Tax Credits for Homeowners

The Inflation Reduction Act extends and expands tax credits for making your home more energy efficient. These include a healthy 30 percent credit for installing home solar panels; credits for installing energy-efficient windows, doors, and insulation; and even a credit for installing a home electric vehicle charger.


Overcoming the IRS Audit That Incorrectly Attacks Deductions

The IRS examiner can make a mistake. But the question is: Will you know it’s a mistake? In the situation described in this article, the tax code contains the answer. The taxpayer simply had to be familiar with it.


Tax-Free Conversion of a Partnership into an S Corporation

You can convert a partnership into an S corporation tax-free (or mostly tax-free) in a variety of ways, as explained in this article. So, if you want to convert your partnership to an S corporation, spend time with this article.




August 2022

Act Now: Claim Your 2020 and 2021 Employee Retention Credit (ERC)

Did you claim the COVID-19-inspired Employee Retention Credit (ERC) in 2020 and/or 2021? You likely qualified for the ERC under one of the tests that you will see in this article.


Act Now: Earn 9.62 Percent Tax-Deferred

Series I bonds can make a great risk-free investment during these troubling inflationary times. If you don’t know about them, read this article for how they work (and they work really well).


Defeat the $10,000 SALT Cap with the PTE Tax (Part 1)

The IRS says that owners of pass-through entities can get around the $10,000 federal cap on deducting state and local taxes by electing to have their entity pay state income tax and then having the entity deduct the taxes as a federal tax deduction.


Q&A: Does Grouping Rental Properties Release Suspended Losses?

When you have suspended passive rental losses, you have a tax-loss savings bond that matures (grants your deductions) when you qualify as a tax-law-defined real estate professional and have passive income.


Claiming the $250,000 Exclusion When Your Name Is Not on the Deed

What happens when you sell your personal residence but your name is not on the deed? Does this rob you of the $250,000 exclusion? And who gets the 1099-S? Not you, for sure.


Inflation Alert: Consider Investing in TIPS

Inflation can make you think of inflation hedges such as Treasury Inflation-Protected Securities (TIPS), discussed in this article. With this investment, you could receive inflation adjustments in your favor without the risk of losing your original investment.


How to Switch from the Mileage-Rate to the Actual-Expense Method

Are you currently using IRS mileage rates to deduct your business vehicle? Is that the right choice for you? If not, you will be happy to know that you can switch to the actual-expense method. The IRS gives you two ways, depending on when you want to make the switch.


Spousal IRAs: What You Need to Know

The spouse with no taxable income might be able to make contributions to a traditional, non-deductible, or Roth IRA. Of course, you need taxable income to qualify, but spouses can use joint income.


Maximize Profits and Defer Taxes with an Installment Sale

Seller-financed installment sales offer many benefits for the seller, including deferring taxes on the sales gain while allowing for top sales price and flexible terms. But this is tax law, and as you would expect, the IRS imposes a number of rules and restrictions on the installment method.