Blog Posts

Daycare Providers Income and Expenses

Daycare Providers Income and Expenses

Daycare Providers Income and Expenses Employer Identification Number (EIN) Even if you operate your daycare business as a sole proprietor or have no employees, you should obtain an EIN. • Instead of your Social Security Number, use your EIN on Form W-10, Dependent...

Tipped Employees

Tipped Employees

Tipped Employees All tips you receive are income and are subject to federal income tax. You must include in gross income all tips you receive directly, charged tips paid to you by your employer, and your share of any tips you receive under a tip-splitting or...

Capital Gains and Losses

Capital Gains and Losses

Capital Gains and Losses Capital Assets Most property you own and use for personal or investment purposes is a capital asset. For example, a house,furniture, car, stocks, and bonds are capital assets. Non-capital Assets A capital asset is any property held by you...

Hobby vs. Business

Hobby vs. Business

Hobby or Business? If an individual, partnership, estate, trust, or an S corporation engages in an activity that is not conducted as a for-profit business, expenses (other than cost of goods sold) are not deductible. This rule does not apply to corporations, other...

Act Fast to Claim a 30 Percent Tax Credit for Residential Solar Panels

Act Fast to Claim a 30 Percent Tax Credit for Residential Solar Panels

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...

Know These Tax Rules If Your Average Rental Is Seven Days or Less

Know These Tax Rules If Your Average Rental Is Seven Days or Less

If you own a condominium, cottage, cabin, lake or beach home, ski lodge, or similar property that you rent for an “average” rental period of seven days or less for the year, you have a property with unique tax attributes. Seven days example. Say you have a beach home...

Combine Home Sale with the 1031 Exchange

Combine Home Sale with the 1031 Exchange

You don’t often get the opportunity to even consider making a tax-saving double play. But your personal residence combined with a desire for a rental property can provide just such an opportunity. The tax-saving strategy is to combine the tax-avoidance advantage of...

Can the IRS Require Odometer Readings with the Mileage Rate?

Can the IRS Require Odometer Readings with the Mileage Rate?

Do you claim your business miles at the IRS optional rate? If so, imagine you are now being audited by the IRS for your business mileage. The IRS has requested odometer readings for your vehicle. You might wonder if the IRS can do this. The answer is yes. The tax code...

QBI Issue When Your S Corp Is a Partner in a Partnership

QBI Issue When Your S Corp Is a Partner in a Partnership

It’s common to consider making your S corporation (versus yourself) a partner in your partnership: it saves you self-employment taxes. Does this affect your Section 199A deduction? It does. Guaranteed payments are not qualified business income (QBI) for the Section...

Avoid This S Corporation Health Insurance Deduction Mistake

Avoid This S Corporation Health Insurance Deduction Mistake

If you own more than 2 percent of an S corporation, you have to do three things to claim a deduction for your health insurance: You must get the cost of the insurance on the S corporation’s books. Your S corporation must include the health insurance premiums on your...

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