If you operate your business as an S corporation or C corporation, there is one issue that consistently creates problems for otherwise well-advised taxpayers: reasonable compensation. It is not a technical nuance. It is not an optional planning concept. It is one
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Real estate investing can be lucrative with proper planning and execution, albeit if you’re not careful or have an experienced tax advisor, you could learn after the fact you owe much more in tax than you expected or planed for. Here, we’ll
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Innocent Spouse Rule — (formally under 26 USCS §6013(e)) — A hardship prevention measure when one spouse (the non-innocent spouse) doesn’t report income, thereby leaving the remaining “innocent spouse” to pay deficiencies. Generally, when married couples file a joint tax return, they
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The rise of pro-am platforms like OnlyFans, Fansly, ManyVids, and subscription-based content services has created a rapidly growing class of entrepreneurs: adult and mature content creators. While many creators start casually or as a side-hustle, those generating meaningful income are operating legitimate
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Shareholder basis can not go below zero Shareholder basis is based on capital investment as well as debt (loans to the corporation) Each year, the shareholder must recalculate their basis based on loans, profit or loss, and distribution/dividends Calculating an S corporation
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Roth IRA contributions are made with after-tax dollars or through a 529 rollover starting in 2024. Generally, eligibility of contributing to a Roth IRA is based on your income and type of income. Generally, as a single person, your Modified Adjusted Gross
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Business Tax advisory and tax preparation Tax preparers are NOT tax advisors, so know the difference Almost all tax preparers do not provide meaningful tax advisory and planning, they simply prepare tax returns as quickly as they can with minimal surface-level advice
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2017 Tax Changes removed the ability to reduce income based on unreimbursed expenses. Taking an expense approach with a home office may leave you with a future tax bill for depreciation recapture. An Accountable plan allows business owners to reduce business income,
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Section 179 of the IRS tax code allows businesses to deduct the full purchase price of qualifying equipment and software bought or financed during the tax year, up to a specified limit Often Confused with “Bonus Depreciation,” albeit there are different benefits
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