When the Second Office in the Home Is a Principal Place of Business
When possible, you want to claim that your office in your home qualifies as a principal place of business because this classification
- gives you the home-office deduction, and
- eliminates commuting from your home to your regular office.
Current law gives you two ways to claim your office in the home as a principal office:
- First, as a principal office under the rules that the Supreme Court finalized in Soliman
- Second, as a principal office under the alternative after-Soliman rules, wherein lawmakers added this alternative: “… the term principal place of business includes a place of business which is used by the taxpayer for the administrative or management activities of any trade or business of the taxpayer if there is no other fixed location of such trade or business where the taxpayer conducts substantial administrative or management activities of such trade or business”
Question for you: If you have an office downtown where you spend 40 hours a week, can you claim that you have an office in your home that qualifies as a principal office if you spend only 12 hours a week working in the home office? If you said no, you are not alone. But you would also be wrong.
With the administrative or management rule, you can have your principal office in your home with 12 hours of work a week, even when you work at your other office for 40 hours.
Earn 9.6% for 6 Months Guaranteed!
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Tax Implications of Investing in Precious Metal Assets
These days, some IRA owners and investors may be worried about being overexposed to equities. That could be you.
But the safest fixed income investments (CDs, Treasuries, and money-market funds) are still paying microscopic interest rates.
For example, when this was written, the 10-year Treasury was yielding about 1.92 percent. Ugh!
Meanwhile, the pandemic might or might not be coming to an end, the economy might or might not be okay, and inflation might or might not be controlled. Who knows?
In this uncertain environment, investing some of your IRA money in gold or other precious metals such as silver and platinum may be worth considering. Ditto for holding some precious metal assets in taxable form. This article explains the federal income tax implications. Here goes.
The Mom and Dad Hotel
Mom and Dad can rent out a room in their home or rent their entire house (tax-free) if they rent it out for no more than 14 days during the year. While the rules are generous in allowing your parents not to include this rental income as taxable income, they can’t offset that income with expenses associated with the rental.
2021 Last Min – Year End Retirement Deductions
2021 Last-Minute Year-End Retirement Deductions
The clock continues to tick. Your retirement is one year closer.
You have time before December 31 to take steps that will help you fund the retirement you desire.
Take a few minutes to review the four retirement plan tax-reduction strategies in this article.
You might find several thousand dollars (and maybe much more) in your pocket by taking the actions in this article. But you’ll need to act now to get the cash.
Last Minute Year End Deductions for Married or Divorced people – Tax Strategies – Kiddie Tax
Last Minute Year End Deductions for Married or Divorced people – Tax Strategies – Kiddie Tax –
If you are thinking of getting married or divorced, you need to consider December 31, 2020, in your tax planning.
Here’s another planning question: Do you give money to family or friends (other than your children, who are subject to the kiddie tax)? If so, you need to consider the zero-taxes planning strategy.
#taxplanning #CPA #businessaccountant
Last Minute 2020 Biz Deductions
The purpose of this post 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.
Here are seven powerful business tax deduction strategies that you can easily understand and implement before the end of 2020.
Year End Medical Plan Strategies
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Does this affect your Section 199A deduction? It does.
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…
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Want to know more? Have some tax questions of your own? Get in touch with us and we’ll guide you thru the tax and accounting process.
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2021 Last Min – Year End Retirement Deductions
2021 Last-Minute Year-End Retirement Deductions
The clock continues to tick. Your retirement is one year closer.
You have time before December 31 to take steps that will help you fund the retirement you desire.
Take a few minutes to review the four retirement plan tax-reduction strategies in this article.
You might find several thousand dollars (and maybe much more) in your pocket by taking the actions in this article. But you’ll need to act now to get the cash.
Last Minute 2020 Biz Deductions
The purpose of this post 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.
Here are seven powerful business tax deduction strategies that you can easily understand and implement before the end of 2020.
Tax Code Offset Game
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Remember to consider your Section 199A deduction in your year-end tax planning.
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Use Your Business to Maximize Charitable Donations
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Congress Reinstates Expired Tax Provisions
The big five tax breaks that most likely impact your
Form 1040
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Can the IRS Require Odometer Readings with the Mileage Rate?
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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…
Know These Tax Rules If Your Average Rental Is Seven Days or Less
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Good News: Most Rentals Likely Qualify as Section 199A Businesses
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IRS Updates Defined Wages for New Section 199A Tax Deductions
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IRS Clarifies Net Capital Gains in Final 199A Regulations
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Convert Your Personal Vehicle to Business and Deduct up to 100 Percent
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Phaseout for New 20% Deduction
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