I’ve got great news for you if you’re… Married and operate your business as a sole proprietor, with no employees [OR] Married and operate your business as a single-member LLC, taxed on Schedule C of your Form 1040 and have no employees If you are in one of these two groups, I urge you to consider hiring your spouse and create a 105-Health Reimbursement Arrangement (HRA) … [Read more...]
Conflicting IRS rules for deducting your business gym
Thinking about setting up a tax-deductible gym for your employees? That makes a lot of sense. They’ll appreciate the chance to stay fit. And appreciate you for providing a wonderful fringe benefit. But be careful. Ever happy to confuse you, the IRS has created two different sets of regulations from two conflicting code sections. Want to make sure you follow the right … [Read more...]
Is your spouse robbing you of your 199A deduction?
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...]
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...]