Year-End Tax Planning, a Lot More Than Simple Deductions
Why would you want to consider tax methods when the years nearly over? Since Year End Tax Planning, a Lot More Than Simple Deductions.
Category:
Tax Savings
Return of the TCJA NOL Rules: The 2021 Nightmare!
The Tax Cuts and Jobs Act (TCJA) ugly net operating loss(NOL) rules, which were laid dormant by the CARES Act, reappear in tax year 2021 to limit your tax loss benefits. What Is an NOL? You have a net operating loss (NOL) when your business deductions exceed your business income. You’ll most often see an …
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How to Get Tax Deductions for Your Yacht or Luxury Boat
Qualifying for tax deductions on a yacht or other luxury boat requires tax knowledge. First, more than 50 percent of your use of the yacht must be for business transportation. Once you meet the “more than 50 percent” test, your potential tax deductions include: fuel costs, insurance, repairs, dock or slip fees, caretakers’ salaries, hurricane …
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Is It Really Business Travel? Here is How IRS States the Rules
When you travel to a business location where you spend the night, you are in business travel status. But will the tax rules make this a business or personal night? The rules also affect your costs during the day. When you have an overnight business travel day, you generally deduct your costs of sustaining life …
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2021-2022 Helicopter View of Meals & Entertainment
Have you missed partying and having business meals with your prospects, customers, and employees? Well, get ready to start again. Soon, COVID-19 will behind us. It could be just a few short months away. Handy-Dandy Chart To help you get ready, check the table below for what you can do in 2021 and 2022 as …
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Four Magic Business Mileage Rules
When you know the rules related to business mileage, you protect yourself in the event of an IRS audit, and pay less tax. Take Joe, for example. Before he knew the mileage rules, he deducted 30 percent of his SUV’s cost. Once he learned the rules, he deducted 92 percent. Or look at poor John—he …
Can You Claim the ERC if the Owner of a C or S Corp?
Members of the tax community struggle with the “solo corporate owner” qualification for the employee retention credit (ERC). The IRS, in one of its answers to frequently asked questions(FAQ), explains the rule as follows: Are wages paid by an employer to employees who are related individuals considered qualified wages? No. Wages paid to related individuals, …
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Tax-Free PPP & The ERC, Claim Both to Double Your Benefit
First, say thanks to the Consolidated Appropriations Act, 2021 (CAA), enacted December 27, 2020. It opened the door (retroactively and going forward) for Paycheck Protection Program (PPP) participants to also claim the employee retention credit (ERC). Reminder. Tax credits are the best. They usually reduce taxes dollar-for-dollar. (The ERC is not quite as good as …
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Step-by-Step: Get The Employee Retention Credit(ERC)
With the Consolidated Appropriations Act, 2021, millions of small-business owners like you now qualify for the employee retention credit (ERC), thanks to three big changes: You can now obtain the ERC and the Paycheck Protection Program loan, but not on the same wages. This new rule applies retroactively to 2020. The new law adds an …
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Child Tax Credit, More Cash For 2021
For the 2021 tax year only, the American Rescue Plan Act of 2021 (ARPA) makes big, taxpayer-friendly changes to the federal income tax child tax credit (CTC). Starting with some necessary background information, here’s what you need to know: Child Tax Credit (CTC) Basics Currently, in 2018-2020 and 2022-2025, the maximum annual CTC is $2,000 …