What form of business makes the most sense for you? A general partnership? A multi-member LLC taxed as a partnership? An S corporation? A C Corporation? In this article posted with the Tax Reduction Letter you will get a close look at multi-member LLCs treated as partnerships for tax purchases. Why? Because the multi-member LLC option will almost always be the … [Read more...]
Self-employment Tax
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Dynamex Causing Incorrect W-2 Classifications for Independent Contractors
The California Supreme Court made an important ruling in the Dynamex case. The court’s decision means that you could inadvertently improperly reclassify your independent contractors and make them suffer needlessly. The Dynamex decision and subsequent new California law causes trouble not only in California but throughout the country. If you have independent contractors … [Read more...]
Section 105 Medical Expense Deduction-Plans for Statutory Employees
_________________________________________________Let’s start with a definition. A “statutory employee” is an independent contractor who is treated as an employee by statute for the purposes of tax withholding. _________________________________________________ Are you a “statutory” employee? Then you should know that, if you’re qualified, you can create a Section 105 … [Read more...]
2019 Last-Minute Vehicle Purchases to Save on Taxes
I’m an accountant, not a car salesman, but I want to make this high-pressure sales pitch right now… “My friends, if you need a replacement business car, SUV, van, or pickup truck, now is the time to buy!” Why? Because if you act promptly, you can take advantage of some extremely valuable deductions. But don’t forget … you have to own the vehicle and place it in service … [Read more...]
Converting Your Residence into a Rental Property: Tax Issues
As you probably know, residential real estate prices are way up in many parts of the country. Rental rates are also very high. That’s why you should consider buying a new residence and converting your current residence into a rental property. Why make this move? Because you can very possibly sell your rental property down the road for a much higher price! But … [Read more...]