Facebook Linkedin Twitter

Business Tax Deduction

Corporate business owners: Is your salary reasonable in the eyes of the IRS?

C Corporation, Compensation, Corporate Business Owners: Is Your Salary Reasonable In The Eyes Of The IRS, Corporations, S Corporation, Tax Return, Tax-Deductible Business Expenses /

Determining “reasonable compensation” is a critical issue for owners of C corporations and S corporations. If the IRS believes an owner’s compensation is unreasonably high or low, it may disallow certain deductions or reclassify payments, potentially leading to penalties, back taxes and interest. But by proactively following certain steps, owners can help ensure their compensation is seen […]

Corporate business owners: Is your salary reasonable in the eyes of the IRS? Read More »

Business Deductions, Business Expenses, Self Employed, Small Business Tax Tips, Standard Business Mileage Rate, Vehicle Expenses /

Understanding how to deduct transportation costs could significantly reduce the tax burden on your small business. You and your employees likely incur various local transportation expenses each year, and they have tax implications. Let’s start by defining “local transportation.” It refers to travel when you aren’t away from your tax home long enough to require

Read More »

Possible tax consequences of guaranteeing a loan to your corporation

Business Loans, Corporations /

What if you decide to, or are asked to, guarantee a loan to your corporation? Before agreeing to act as a guarantor, endorser, or indemnitor of a debt obligation of your closely held corporation, be aware of the possible tax consequences. If your corporation defaults on the loan and you’re required to pay principal or

Possible tax consequences of guaranteeing a loan to your corporation Read More »

Getting a new business off the ground: How start-up expenses are handled on your tax return

Business Deductions, Business Expenses, Business Start Ups, Entrepreneurs, Small Business, Tax Return /

Despite the COVID-19 pandemic, government officials are seeing a large increase in the number of new businesses being launched. From June 2020 through June 2021, the U.S. Census Bureau reports that business applications are up 18.6%. The Bureau measures this by the number of businesses applying for an Employer Identification Number. Entrepreneurs often don’t know

Getting a new business off the ground: How start-up expenses are handled on your tax return Read More »

Can taxpayers who manage their own investment portfolios deduct related expenses? It depends

Investment, Retirement, Trader vs Investor /

Do you have significant investment-related expenses, including the cost of subscriptions to financial services, home office expenses and clerical costs? Under current tax law, these expenses aren’t deductible through 2025 if they’re considered investment expenses for the production of income. But they’re deductible if they’re considered trade or business expenses. For years before 2018, production-of-income

Can taxpayers who manage their own investment portfolios deduct related expenses? It depends Read More »

Hire Your Children This Summer: Everyone Wins

401 K, Business Income Tax, College children on The Payroll, Income Tax, Individual Income Tax, Roth IRA, Small Business /

If you’re a business owner and you hire your children (or grandchildren) this summer, you can obtain tax breaks and other nontax benefits. The kids can gain on-the-job experience, save for college and learn how to manage money. And you may be able to: Shift your high-taxed income into tax-free or low-taxed income, realize payroll

Hire Your Children This Summer: Everyone Wins Read More »