If your taxable income is above $164,900 (or $329,800 on a joint return), then your type of business, wages paid, and property can reduce and/or eliminate your Section 199A tax deduction. The combinations can create confusion, but you can lessen the confusion by using the 2021 Section 199A calculator. Want to stay on the safe side? Read my new article titled 2021 … [Read more...]
2021 Last-Minute Year-End Retirement Deductions
Are you currently using a retirement plan that’s helping you and your employees reach important retirement goals? Well, you should have one. And soon. (Read the full article for full details.) Why the rush? Because if you act by December 31, you’ll be able to put a business retirement plan in place, or make the switch to an extremely useful Roth IRA (if your income is … [Read more...]
2021 Last-Minute Year-End Tax Strategies for Your Stock Portfolio
Here’s good news if you own a stock portfolio. (And if you’re a reader of the Tax Reduction Letter, I’ll bet you do.) If you know how to play the game, you can turn your stock portfolio into a year-end tax-reducing machine. The basics are really pretty straightforward. Avoid the high taxes (up to 40.8%) on short-term capital gains and ordinary income.Lower the taxes to … [Read more...]
The IRS War Against Independent Contractors: An Update
To get my complete, FREE articlewith all the details… It’s a fact every business owner and independent contractor should know… Many state and federal agencies may have you in their cross hairs. They’re going after businesses that hire “independent contractors” rather than “employees.” Why? Because, unlike independent contractors, W-2 employees prepay their taxes. … [Read more...]
Two. Four. Six. Eight. When can we depreciate?
To get my complete, FREE articlewith all the details… What’s more fun? Lying on a beach with a chilled Margarita in your hand or Sitting in an office, figuring out the best way to depreciate business assets? I must confess, that as the publisher of the Tax Reduction Letter, evaluating deduction strategies wins hands down. (Okay. So I’m lying—maybe.) The first … [Read more...]