Do You Need to Amend Your 2020 Tax Return for the 2020 ERC?
Question I know that the IRS requires that I amend the 2020 tax return for my 2020 Employee Retention Credit (ERC). Here’s the deal: I don’t have the credit yet. And as you know, the IRS stopped processing ERC claims from September 14, 2023, through at least December 31, 2023. My claim was filed during […]
Turn Your Vacation —Even a Luxurious One— into Tax-Deductible Business Travel
Here’s an idea: how about transforming your next vacation into business travel? With careful planning, your transportation to any destination could be fully deductible. This includes airfare—even first-class—luxury hotel stays, and cruise expenses. If you can tie your travel to business purposes, you can enjoy substantial tax savings, depending on your tax bracket. Two Main […]
Tax Reform Doubles Down on S Corporation Reasonable Compensation
For tax years 2018-2025, the Tax Cuts and Jobs Act (TCJA) tax reform gives you a valuable 20 percent deduction on your pass-through business income if you have the right business and the right taxable income. The S corporation is a pass-through entity. That’s one step in the right direction. In addition, the S corporation […]
Self-employed? Amend Tax Returns for up to $32,220 in TaxCredits
If you are self-employed or operate a small corporation, it’s likely that you have not applied for your sick and family leave tax credits. If that’s the case, get your act together and file amended 2021 and 2020 tax returns now. You could find up to$32,220 in tax credits. To see if you could qualify […]
Buy or Lease a Business Vehicle: Which Costs Less?
If you’re trying to decide between leasing and buying your next business vehicle, one question is probably foremost in your mind: Which option costs less? Unfortunately, comparing the costs of leasing and buying isn’t as simple as it looks. To do it right, you must consider not just out-of-pocket costs but also cash available, the […]
New FinCEN Filings Go into Effect on January 1
For existing businesses, the Corporate Transparency Act (CTA) goes into effect on January 1, 2024, and imposes a brand-new federal filing requirement on most corporations, limited liability companies, and limited partnerships and on certain other business entities. No later than December 31, 2024, all non-exempt business entities must file a beneficial owner information report (BOI […]
Beware of the Dreaded Wash Sale Rule When Harvesting TaxLosses
You generally think of tax loss harvesting as a year-end strategy. And it truly is a good one. But it’s also a “whenever you need it” strategy. For example, say you used a lot of “kick the can down the road” strategies this year and need a big loss to offset gains in 2024. You […]
2023 Last-Minute Year-End General Business Income Tax Deductions
The purpose of this article is to get the IRS to owe you money. Of course, the IRS will not likely cut you a check for this money—although in the right circumstances, that will happen. But in most cases, you’ll probably realize the cash when you pay less in taxes. This article gives you six […]
Should You Convert Your Personal Vehicle to Business Use?
Remember Mel Practess, the attorney you met last month who came out ahead by using his wife’s car for business? Once Mel and Sharpe, his wife, started using both cars, they had 73.7 percent business use of each car.1 Before their agreement to switch cars every week, Mel drove one car and achieved 93.3 percent […]