How to Properly Reimburse Yourself and Employees for Business Expenses And keep yourself out of trouble with the IRS!
Failure to use an accountable plan for your employee expense reimbursements (including yourself if you operate as a corporation) turns those improperly reimbursed expenses into taxable wages. In other words, by failing to comply with the accountable plan rules, you turn the tax-free reimbursement into taxable W-2 wages. That’s about as dreadful as it can […]
The Bipartisan Budget Act of 2015 (“Act”) made significant changes to the Internal Revenue Service’s (“IRS”) partnership audit rules effective for partnership tax years beginning in 2018. How the new audit rules will affect a partnership and its partners will depend, in large part, on choices the partnership, the partnership representative, and/or the partners make or fail to make.
The new Section 199A 20% Pass-Through deduction for business owners is probably the most confusing and complex part of the new Tax Cuts and Jobs Act of 2017; however, it has some very positive planning opportunities that could save you thousands in taxes. One such area is in retirement savings. If your business income is […]
1)Your year-end tax planning doesn’t have to be hard. I have outlined below five strategies that will increase your tax deductions or reduce your taxable income so that Uncle Sam gets less of your 2018 cash. Prepaying your 2019 expenses right now reduces your taxes this year, without question. While it’s true you kicked the […]
Here are five year-end tax-deduction strategies that apply if you are getting married or divorced, have children who did or could work in your business, and/or have situations where you give money to relatives and friends. Put Your Children on Your Payroll Did your children under age 18 help you in your business this year? […]
The beauty of tax planning your year-end stock portfolio is that it might cost you pennies in commissions but allow you to pocket real money. Here’s the basic strategy: Avoid the high taxes (up to 40.8 percent) on short-term capital gains and ordinary income. Lower the taxes to zero—or if you can’t do that, then […]
Your year-end tax planning doesn’t have to be hard. I have outlined below five strategies that will increase your tax deductions or reduce your taxable income so that Uncle Sam gets less of your 2018 cash. Prepaying your 2018 expenses right now reduces your taxes this year, without question. While it’s true you kicked the […]
Thinking about a Business Vehicle purchase? Two Questions: Do you need a replacement business car, SUV, van, or pickup truck? Do you need tax deductions this year? Here are some ideas for you to consider: Buy a New or Used SUV, Crossover Vehicle, or Van with a GVWR Greater than 6,000 Pounds Let’s say that […]
Ted’s Tax Saving Tips Vol 201811 IRS Says TCJA Allows Client and Prospect Business Meal Deduction In Notice 2018-76, the IRS states that client and prospect business meals continue as tax deductions under the Tax Cuts and Jobs Act. This is very good news indeed. Under this new IRS guidance, you may deduct 50 percent […]
It is urgent that those getting divorced consider the changes in Alimony tax treatment of any agreements executed after December 31, 2018. The Tax Cuts and Jobs Act (TCJA) dramatically change the deductibility of alimony to ZERO! For all divorce agreements executed after December 31, 2018, alimony is not deductible for those paying nor is […]