Do you operate your business as a corporation? Do you own your business car personally? If both answers are “yes,” be aware that thanks to the Tax Cuts and Jobs Act, employee business expenses are not deductible for tax years 2018 through 2025. This means you can’t claim vehicle deductions as employee business expenses. So, are you out of luck? No. If you want … [Read more...]
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How to Calculate and Improve Your QBI from a Partnership
It’s great to be able to claim the Section 199A deduction. It’s not so great trying to calculate the deduction. Frankly, it’s a bear. In order to clarify things, we’ll explain how the Section 199A qualified business income (QBI) calculation works in the case of a general partner who had guaranteed payouts for services and health insurance premium payments. If you are … [Read more...]
Tax reform creates huge hazards when you loan money to your corporation
Making loans to your corporation became a lot more hazardous back in 1986 thanks to the Tax Reform Act passed that year. But you ain’t seen nothin’ yet… The new Tax Cuts and Jobs Act makes things far worse for tax-years 2018 through 2025! We’ll tell you exactly what lawmakers did when you read my new article titled Tax Tips: TCJA Tax Reform Creates Big Hazard in Loans to … [Read more...]
IRS updates defined wages for new Section 199A tax deductions
If you want to take advantage of the new 20-percent tax deductions under tax code Section 199A, you need to follow certain important IRS rules. For example, you’ll need to calculate your business’s W-2 wages if they meet certain important criteria. What exactly are they? How can you comply with the law and stay out of the IRS’s gun sights? You’ll find out when you read … [Read more...]
IRS Section 199A Final Regs Shed New Light on Service Businesses
Here’s more good news from Uncle Sam… The IRS issued final Section 199A regulations that contain some hew and very favorable provisions for out-of-favor specified service trades and businesses. A nice feature of the new regulations are the de minimis rules that allow you to break your out-of-favor business into two or more businesses for the purpose of successfully … [Read more...]