It’s a fact that taxpayers know well. Uncle Sam’s tax rules are not always clear. (A huge understatement!) But thanks to new government guidance, the rules governing PPP loan-forgiveness, for several types of business entities, are models of clarity. (More or less.) To be specific… the new PPP rules explain clearly how you can identify your personal (owner-employee) … [Read more...]
Corporations
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COVID-19: Tax Benefits for S Corporation Owners
If you operate your business as an S corporation, I have some good news for you. Because of the toll the pandemic has taken on business,the IRS is lightening up on S corporations. This means important new benefits for you! Oh, I know that in the past, the IRS has been tough on S corporations in many ways. That’s because the tax law limited (or eliminated) tax breaks … [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...]