If you do some work at home, you’re probably wanting to use your home internet deduction. Are your monthly internet expenses deductible? Maybe. The deduction rules depend on your choice of business entity (proprietorship, corporation, or partnership). Home Internet Deduction on Schedule C If you operate your business as a sole proprietorship or as a …
With the Augusta Rule, imagine this: Tax deduction for you Tax-free income for Mom and Dad It doesn’t have to be Mom and Dad. The tax-free income can go to your brother or sister, or your best friend. To make this work, you need to have a business reason to travel and stay overnight …
Let’s say you operate a real estate brokerage LLC with four partners and are the managing partner. Can a partner also be a 1099 Worker? Last year, one of your partners picked up her personal return to be filed and was informed by her new CPA that she could not deduct real estate expenses …
Can a Partner in a Partnership Be a 1099 Worker? Read More »
Obtaining a tax credit is the next best thing to paying no taxes at all. The tax code contains over 30 non-refundable tax credits for businesses. These are part of the general business tax credit and are claimed on IRS Form 3800, General Business Tax Credit, and Schedule 3 of Form 1040. The general business …
6 Tax Credits for Employeeless Schedule C Businesses Read More »
The IRS has released the 2022 standard mileage rates for taxpayers to use in computing the deductible costs of operating an automobile for business, charitable, medical, or moving expense purposes. The following chart reflects the new 2022 standard mileage rates compared to the 2021 and 2020 tax year standard mileage rates. Year: …
Children are expensive. The IRS has a solution to this problem: Put your kids to work in your business and make them earn their money. The IRS gives you payroll tax deductions for hiring family members, making this an extremely attractive government subsidy. You’re in the best position to benefit from this rule if …
Put Your Kids to Work in Your LLC or Sole Proprietorship! Read More »
We wanted to provide you with an update regarding the California state and local tax (SALT) recently passed that may affect you. If you are a partner, shareholder, or member of an S-corporation, LLC, or partnership, you may be able to reduce your federal income tax liability. The TCJA reduced the amount of the state …
Time Sensitive California Tax Update You Should Know Read More »
Your marital status as of Dec. 31 determines your tax filing options for the entire year. State law usually determines whether you are married. If you’re married at year-end, you have two filing status choices: filing jointly with your new spouse; Married Filing Jointly, or filing separate from your spouse; Married Filing Separately Tax Responsibility …
Did You Get Married Or Plan To Before Dec. 31st? Know Your Tax Filing Rules! Read More »
What are the three rules of depreciation and why would it matter to you? Are you thinking about buying personal property (such as a car, a computer, or other equipment) or real property (such as a building)? If you use the property for personal purposes, it’s not deductible. But if you use it in a …
Three Rules of Depreciation: Why, When, and What Read More »
Work from home tax deductions, why the fuss? According to Global Workplace Analytics, 25-30% of the workforce will be working from home numerous days a week by the end of 2021. Currently a pattern before the pandemic, remote working ended up being the “brand-new normal” for businesses of all sizes having a hard time surviving …