Tag: #taxseason

Travel Intent

With many people traveling this week for Thanksgiving, I found this article fitting this week. To help you understand business travel, consider this: You planned a personal trip to Los Angeles, arriving on Friday afternoon and leaving on Sunday afternoon. About a week later, you learn that a vendor you need to meet with is
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Spousal Partnership

Tax reform changed the rules of the game when choosing your best tax structure. In looking over the possibilities, we note that a properly structured spousal partnership could be your best choice. Here are the tax benefits to you: Your spouse’s income is free from self-employment tax. You and your spouse both still qualify for the new
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Home Office Increases IRS Audit Likelihood?

Nov 11, 2019 Tax by Kevin Noles
If you filed your business income and expenses as a proprietor in 2017 and reported $100,000 or more in gross receipts, your chances of IRS audit were 2.4 percent (2017 returns are still open for audit, so the percentage could increase). Had you reported this income as an S corporation, your chances of audit were
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Converting Your Home to a Rental

The simple maneuver of converting your personal residence to a rental property brings with it many tax rules, mostly good when you know how they work. The first question that arises when you convert a personal residence into a rental is how to determine the property’s tax basis for depreciation purposes during the rental period
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Capital Gains Destroys 199A Deduction

We have had a number of clients who have been confused about the starting point for the new Section 199A tax deduction. Let me clarify: taxable income is the sole starting point for your Section 199A deduction. When your taxable income is equal to or less than the threshold of $157,500 (single) or $315,000 (married,
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Reasons for Accountable Plan Expensing

Failure to use an accountable plan for your employee expense reimbursements (including yourself if you operate as a corporation) turns those improperly reimbursed expenses into taxable wages. In other words, by failing to comply with the accountable plan rules, you turn the tax-free reimbursement into taxable W-2 wages. That’s about as dreadful as it can
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Bonus Depreciation or De Minimus Safe Harbor Election

Oct 7, 2019 Tax by Kevin Noles
Before tax reform, the de minimis safe harbor election was the best way to immediately expense the entire cost of your small-business assets for federal income tax purposes. Now that the Tax Cuts and Jobs Act tax reform gives you 100 percent bonus depreciation through 2022, you have three possible reasons to use 100 percent
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Claim 30% Your Tax Credit for Solar Panels

Oct 1, 2019 Tax by Kevin Noles
Here’s a heads-up. The 30 percent residential solar credit drops to 26 percent for tax year 2020, drops to 22 percent for tax year 2021, and terminates in 2022. Also, unlike the 30 percent commercial solar credit, where you can qualify for the 30 percent tax credit when you commence construction (as defined by the
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