Helicopter View of 2023 Meals and Entertainment
The article discusses changes to the business meal deduction for the year 2023 and beyond. As of now, the deduction for business meals is only 50 percent—a significant change from the previous 100 percent deduction for business meals in and from restaurants, which was applicable only for the years 2021 and 2022. Additionally, many business-generating […]
Big Tax Changes To Know for 2023
Alert: A Massive New FinCEN Filing Requirement Is Coming The Corporate Transparency Act (CTA) is a new law passed in 2021 that requires corporations, LLCs, and other business entities to provide information about their owners to the Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN). The CTA did not take effect immediately. Rather, Congress […]
$80 Billion to the IRS: What It Means for You
For the business owner and tax practitioner, the most important part of the Inflation Reduction Act of 2022 was not the tax credit for flashy new electric cars. It was something much more basic: a long-term budget commitment to help the struggling, failing IRS. The Inflation Reduction Act invests an additional $80 billion in the […]
Act Now: Claim Your 2020 and 2021 Employee Retention Credit (ERC)
During much of 2020 and 2021, you may have qualified for the Employee Retention Credit (ERC). With the ERC, you found (or could find) tax credits of up to $26,000 per employee. That’s a lot. With 10 employees, that’s $260,000. Key point. If you have not claimed the ERC, you can amend your 2020 and […]
IRS Says Your Independent Contractors Are Employees: Use the CSP
Uh-oh! The IRS audited your business and concluded that you misclassified some workers as independent contractors. The IRS says they are employees. You are worried—rightfully worried. If you got this wrong, the IRS will assess years of back employment taxes, plus penalties and interest. The dollar amounts can be huge. This is the second in […]
Home-Office Deduction If You Operate as a Corporation
Question What does the IRS audit manual say about the home office for an individual who operates his or her business as a corporation? Answer You will be interested in two boilerplate explanations from the Internal Revenue Manual that examiners use to explain why the IRS is denying the home-office deduction:1 We [the IRS] have […]
Health Savings Accounts: The Ultimate Retirement Account
Looking to save for retirement? The first account you should open and fund is not an IRA (regular or Roth) or 401(k). If you qualify, your first retirement account should be a Health Savings Account (HSA). Don’t let the name fool you.The HSA may be the ultimate retirement account. Not looking to save for retirement? […]
New Hope for Restoring and Fixing the Employee Retention Credit
As you may remember, two bad things happened to the Employee Retention Credit (ERC): On November 15, 2021, Congress retroactively repealed the ERC for the fourth quarter of 2021(except for start-up businesses). On August 4, 2021, the IRS issued the clearly irrational Notice 2021-49 stating that a corporateowner with certain living relatives does not qualify […]
2021 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 is not likely to cut you a check for this money (although in the right circumstances, that will happen), but you’ll realize the cash when you pay less in taxes. This article gives you six powerful business […]
Ready, Set, Depreciate
When you buy real property (or personal property that lasts more than one year) to use in your business, you may have up to three options for deducting the cost: Regular depreciation Bonus depreciation IRC Section 179 expensing (technically, depreciation in advance) Regular depreciation takes several years. Bonus depreciation allows you, through 2022, to deduct […]
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