Why do people move from one state to another? Sometimes it’s because they’re changing jobs, or want milder climate, or want to be near their families. And some folks move to another state because they want to pay lower taxes. But wait a second! Before you call the moving company and head off to a state that has no personal income tax, be very careful. You see, it’s … [Read more...]
Seven Things to Know Before You Take Out an EIDL
Does your business need working capital due to the terrible impact of the COVID-19 pandemic? If yes, consider taking out a Small Business Administration (SBA) EIDL loan. EIDL stands for the Economic Injury Disaster Loan program and it can provide up to $150,000 to businesses in need. But be aware. Although the EIDL can provide you with much needed capital, it’s a … [Read more...]
Don’t Let Section 179 Recapture Hurt You
Claiming Section 179 expensing can be a great way to save money on taxes. And no wonder. Section 179 lets your business take an immediate deduction for expenses on certain depreciable assets. But watch out! If you handle your Section 179 deductions the wrong way, you can face some expensive consequences! Specifically, if you violate the agreement you make with the IRS … [Read more...]
What Is the Unpardonable Sin in an IRS Audit?
You get the mail. You go through it quickly. And then you come to an envelope from the IRS. As your heart rate increases, you open the letter. Then the nightmare begins. The letter says that you’re going to be the subject of an IRS audit. IMPORTANT: When you go in for your audit remember these three things: Go to the bathroom before you go in to meet your … [Read more...]
Best Choice: De Minimis or 179 Expensing—or Bonus Depreciation?
Hey taxpayer… COME ON DOWN!!! Today we’re going to play the exciting Tax Cuts and Jobs Act (TCJA) game! If you choose the right door, you could win the grand prize of a huge tax break! Ready to play? Okay. Let’s go! Behind door #1 is bonus depreciation. It’s a great way for you to deduct 100% of certain business assets. This can get pretty complicated so before … [Read more...]