The fact that your personal home is not your tax home is one income tax issue. Here’s another: business travel is different from business transportation. Your tax deductions, tax strategies, and tax records hinge on the following federal income tax–defined…
You can plan your tax-deductible business life to avoid cold winters and hot summers. Spend a moment examining the following four short paragraphs that contain the basic facts from the Andrews case. For six months of the year, from May through October,…
The recent tax reform, known as the Tax Cuts and Jobs Act (TCJA), added some good benefits to your real estate rentals. Both residential and commercial properties obtained a number of new tax breaks with respect to Section 179 deductions…
The tax law has mistreated hobbies for a long time. But the most recent tax reform brings the grim reaper to the party, and it’s not pleasant. This means you need to focus on making your activity a business and…
The recent tax reform contains two big changes to how much you can deduct in mortgage interest for tax years 2018 through 2025: During this seven-year period, you may not deduct any interest on prior or current home equity debt,…
You hate IRS penalties, right? Everyone does! There are a lot of strategies we can use on your behalf to potentially defeat an IRS penalty. Thanks to the courts, though, we now have a brand-new way to beat an IRS…
Are you considering accepting bitcoins as payment? If so, you should know the tax implications of accepting bitcoins in your business and the major pros and cons of doing so. I’m going to use an example to explain this. Example.…
The new 2018 Section 199A tax deduction you can claim on your IRS Form 1040 is a big deal. There are many rules (all new, of course), but your odds as a business owner of benefiting from this new deduction…
Tax Identity Theft Isn’t Limited to Individual Returns The Internal Revenue Service issued a bulletin in December 2017 warning small businesses to be vigilant against increasing tax identity thefts against employers. It was noted that the IRS saw a large…
Does your rental property activity meet the definition of a trade or business activity? If yes, your rentals produce the best possible tax benefits. Generally, you report your rental properties on Schedule E of your tax return. When your activity…