Want to help your employees with their medical expenses? Then consider establishing a qualified small-business health reimbursement account (QSEHRA). It could be great for your employees and for you. IMPORTANT: Make sure your QSEHRA is in place on or before October 2! There are three reasons why you should act by October 2: Reason #1: You’ll avoid penalties Reason #2: … [Read more...]
New IRS Regs: Does Your Rental Qualify for a 199A Deduction?
You may know that new Section 199A of the tax code gives you up to a 20-percent tax deduction for your pass-through business income. But what about your rental activities? Do they qualify you as an individual for this potential 20-percent deduction? These are important questions that we’ll answer fully when you read my new article titled Tax Tips: New IRS Regs: Does Your … [Read more...]
How to Create A $63,000 199A deduction
If you earn a lot of money, be very careful. You see, if you operate an out-of-favor, specified-services business, your 199A deduction may vanish into thin air. Poof! _________________________________________________________ Definition of “out-of-favor” according to Uncle Sam Under the 2018 tax code, “out-of-favor” groups include lawyers, doctors, accountants, tax … [Read more...]
New IRS 199A regulations benefit out-of-favor service businesses
As we’ve discussed in recent issues of the Tax Reduction Letter, Section 199A provides a valuable 20-percent tax deduction for many businesses. But as you may recall, the regulations deny the deduction to certain “out-of-favor specified service businesses” (when individuals’ incomes exceed certain limits. This has caused a lot of pain and consternation). But now there’s … [Read more...]
How to find your Section 199A deduction with multiple businesses
Calculating your Section 199A deduction for a single business can be complicated and confusing. If you have multiple businesses, things get even trickier. There are more decisions to make. More choices to consider. More complications to deal with. That’s where our new issue of the Tax Reduction Letter comes in. We’ll show you step-by-step how to calculate your correct … [Read more...]