Beat the Estimated Tax Penalty with Strategic Withholding
The due dates for quarterly estimated tax payments for your 2025 tax year are April 15, 2025; June 16, 2025; September 15, 2025; and January 15, 2026. When you miss one of those dates, the tax code penalizes you. The current penalty rate for underpaying the first payment on April 15, 2025, is 7 percent. […]
Beat the Taxman: Use the Tax Code–Created QCD to Kill YourRMD
When you reach age 73, you’ll have to start taking required minimum distributions (RMDs) from your traditional IRAs. If you have a lot of money in your IRAs, RMDs can be a real tax headache. RMDs are taxable income, so they increase your adjusted gross income and bump you into a higher tax bracket. They […]
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 […]
One Ugly Rule for Owners of S Corporations Deducting Health Insurance
An ugly rule applies to how S corporation owners deduct the cost of health insurance that a corporation puts on its W-2s. The words that make this an ugly rule are “earned income,” and this is unusual because you generally think of earned income as a good thing. But for the S corporation owner who […]
PDF Guide: Four Powerful Tax Strategies for Charitable Giving
Supporting the causes you care about is a fulfilling way to make a difference. You get a bonus when your charitable donations create tax deductions. We designed our downloadable PDF guide to help you unlock the full potential of your tax savings. Inside the Free Report Here’s the table of contents from the free special […]