Recent changes in the tax law provide a hefty 20-percent Section 199A tax deduction for lots of lucky taxpayers. But not for everyone. “In-favor” business owners are winners. “Out-of-favor” business owners are losers. What happens when an in-favor owner marries an out-of-favor owner? Does one spouse rob the other of their valuable 20-percent deduction? You’ll get the … [Read more...]
Tax Policy
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Beat some of the new limits on state tax deductions
Tax reform under the Tax Cuts and Jobs Act has put your state and local tax deductions in the crosshairs. Thanks to lawmakers, your federal deductions for state income taxes now can’t exceed a $10,000 ceiling. And that’s just for starters. But don’t lose heart. Once again the Tax Reduction Letter comes to the rescue with specific strategies you can use to keep more money in … [Read more...]
Does moving your W-2 to Schedule C increase your taxes?
If you qualify to report your W-2 wages on Schedule C (to avoid losing your employee business expenses), will you get any credit for the FICA taxes withheld from your W-2? And another question … would you get any credit for the employer matching the FICA taxes? If you believe that a large part of your tax savings could go down the drain (through the additional … [Read more...]
Don’t let the “cliff” kill your new Section 199A deduction
Thanks to Section 199A of the new tax law, you could wind up with a nice 20-percent deduction worth as much as $63,000. Or you could wind up with nothing. Zero. Zip. Why is your deduction at risk and what can you do to make sure you come out a winner? Here’s the answer. Take a minute and read my new article titled Tax Tips: Don’t Let the Cliff Kill Your New Section 199A … [Read more...]
Don’t let business losses make you an IRS target
It’s a fact… The tax law has always treated your hobby activities unfairly. Now, tax reform under the Tax Cuts and Jobs Act has made things even worse. You see, thanks to this new legislation, you’re prevented from deducting any business expenses against hobby income. That’s right. Tax reform has turned your tax-law-defined, not-for-profit hobby activity into an unfairly … [Read more...]