Are you getting married or divorced? If so, you need to know the year-end rules that apply in case you want to grab some extra tax savings this year. If you have children under the age of 18 and file your tax return as a proprietorship or partnership, you can find big savings in the …
2018 Last-Minute Year-End Tax Strategies for Marriage, Kids, and Family Read More »
The purpose of this blog is to get the IRS to owe you money. Of course, the IRS is not likely to cut you a check for this money (although in the right circumstances, that will happen), but you’ll realize the cash when you pay less in taxes. This blog gives you five powerful business …
2018 Last-Minute Year-End General Business Deductions Read More »
Reduce S Corporation Owner’s Wages — As the owner of an S corporation, you can legitimately cut payroll taxes by thousands of dollars by paying yourself a lower salary and taking the rest of your income as distributions. But you need to make sure that you don’t drop your salary below what the IRS considers “reasonable …
In Notice 2018-76, the IRS states that client and prospect business meals continue as tax deductions under the Tax Cuts and Jobs Act. This is very good news indeed. Under this new IRS guidance, you may deduct 50 percent of your client and prospect business meals if the expense is an ordinary and necessary expense …
If you are looking for a tax deduction, giving to charity can be a “win-win” situation. It’s good for them and good for you. Before tax reform, you could take a deduction for your cash charitable contributions totaling up to 50% of your adjusted gross income (AGI). The new tax code has increased that limit …
Tax reform made a lot of good changes in the tax law for the small-business owner. But the changes to the net operating loss (NOL) deduction rules are not in the good-changes category. They are designed to hurt you and put money in the IRS’s pocket. Now, if you have a bad year in your …
Four Strategies for Your Business Loss after Tax Reform Read More »
Question: I have two rental properties with triple-net leases. They generate taxable income each year. Can I get the 20 percent deduction for them? Answer: We don’t have a clear answer for you, so we are going to go with maybe. As you’ll see, we need more information. Triple-Net Lease A triple-net lease requires the …
Do Triple-Net Leases Qualify for a 199A Deduction? Read More »
The new IRS proposed regulations confirm that the S corporation treats as wages the reasonable compensation that it pays to its shareholder-employees. That’s good, and it opens planning opportunities. Even better! Some commentators had claimed that wages to an S corporation did not count for the Section 199A wage calculation or that it was necessary …
IRS Clarifies Reasonable Comp. for S Corp. Owner’s 199A Tax Deduction Read More »
Will you qualify for the new tax code Section 199A 20 percent tax deduction? When looking at the possibilities, don’t overlook your capital gains, because they add to your taxable income, which is the primary determinant of your qualification for some, all, or none of the 199A deduction. Example. You operate a proprietorship that’s in …
How Capital Gains Can Destroy the New 199A 20 Percent Tax Deduction Read More »
The days when you could convert your rental property or vacation home to a principal residence and then use the full $250,000/$500,000 home-sale exclusion to avoid taxes are gone. Here’s how the $250,000/$500,000 exclusion works today. You must divide your period of home ownership into two categories—qualified and nonqualified use: Qualified use means the time …
