Operating your business as a partnership can offer real advantages. This is also true for LLCs (treated as partnerships for tax purposes). Why? Because operating your business as a partnership or LLC gives you the right to make “special tax allocations” of tax items among the partners. Read the full article for details What is a special tax allocation? Partners … [Read more...]
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Self-Employed with No Employees? Get Your COVID-19 Cash Now
They say there’s no such thing as a free lunch,but there IS free money waiting for you! Here’s the story… The government knows that the COVID-19 pandemic has had a devastating effect on small businesses. That’s why the Payroll Protection Plan (PPP) was created. Almost overlooked is the fact that it is intended to grant cash to self-employed 1040 Schedule C taxpayers … [Read more...]
Husband-Wife Partnerships: Three Tax-Saving Strategies—Part 2
___________________________________________________________I hope this issue of the Tax Reduction Letter finds you and your family in good health. Warmest good wishes at this difficult time from all of us at the Bradford Tax Institute.___________________________________________________________ In Part #1 of our article titled Husband-Wife Partnerships-The Tax Angles, we … [Read more...]
Beware of the Dark Side When Considering the C Corporation
It’s a fact. The Tax Cuts and Jobs Act (TCJA) made the C corporation a lot more attractive than in the past. Why? Because the TCJA created a flat 21% federal income tax rate. That’s a heck of a lot better than paying the 37% maximum federal income-tax rate for individual taxpayers. And there are other reasons for favoring the C corporation. However… we’re writing … [Read more...]
Beat the Unfair $10,000 SALT Cap with a C Corporation
Do run a profitable S corporation? Then you know that before the Tax Cuts and Jobs Act (TCJA) became law, you could deduct foreign, state, and local taxes (SALT) on your Form 1040 Schedule A without limit! Well, the TCJA changed all that. Now, it caps those deductions at $10,000. What can you do to avoid some of this government picking your pocket with the TCJA? Well, … [Read more...]