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Tax Tips for August 2024

Tax Tips for August 2024

by | Aug 1, 2024 |

Click on the links below to jump to each section in this article: Using an IRA Withdrawal for a Qualified Home Purchase Get a Jump on Tax Planning How to Deduct Business Travel   Using an IRA Withdrawal for a Qualified Home Purchase Purchasing a home is an expensive proposition that leaves many would-be buyers feeling cash strapped. If that’s you, you might be thinking about taking some money out of your traditional IRA to help fund the purchase. But should you? Afterall, a 10% penalty normally applies to IRA withdrawals before age 59 1/2. The good news is that there’s an exception to the penalty for certain home purchases, subject to a lifetime limit of $10,000. To qualify, you must be purchasing an eligible “first-time” principal residence for yourself, your spouse, your child,...

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Renting to Family Members

Renting to Family Members

by | Jul 22, 2024 |

As rents continue to rise in many areas, you may decide to help your financially challenged family members by renting a property to them at a discount. But this can lead to the loss of significant tax deductions. Here’s a look at the tax treatment that applies when you rent to unrelated parties and how the rules change when you rent to relatives.

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5 Strategies for Improving Collections

5 Strategies for Improving Collections

by | Jul 15, 2024 |

Businesses that operate in the retail or restaurant spheres have it relatively easy when it comes to collections. They generally take payments right at a point-of-sale terminal and customers go on their merry way. For other types of companies, it’s not so easy. Collections can be particularly difficult for business-to-business operations, which often find themselves in complex relationships with key customers. In these businesses, it’s often not as simple as “pay up or hit the road.”

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Independent Contractors: Classify Carefully

Independent Contractors: Classify Carefully

by | Jul 8, 2024 |

Many businesses use independent contractors to help keep their costs down and provide flexibility for short-term needs. But the question of whether a worker is an employee or an independent contractor is complex. Be careful that your independent contractors are properly classified for federal tax and employment tax purposes, because if the IRS reclassifies them as employees, it can be an expensive mistake.

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What Expenses Can’t Be Written Off by Your Business?

What Expenses Can’t Be Written Off by Your Business?

by | Jun 17, 2024 |

If you check the Internal Revenue Code, you may be surprised to find that most business deductions aren’t specifically listed there. For example, the tax law doesn’t explicitly state that you can deduct office supplies and certain other expenses. Some expenses are detailed in the tax code, but the general rule is contained in the first sentence of Section 162, which states you can write off “all the ordinary and necessary expenses paid or incurred during the taxable year in carrying on any trade or business.”

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Does the Corporate Transparency Act Apply to Your Business?

Does the Corporate Transparency Act Apply to Your Business?

by | Jun 10, 2024 |

Under the Corporate Transparency Act (CTA), many businesses are subject to new reporting requirements that went into effect on January 1, 2024. That means certain companies are required to provide information related to their “beneficial owners,” that is, the individuals who ultimately own or control the company, to the Financial Crimes Enforcement Network (FinCEN). Failure to submit a beneficial ownership information (BOI) report may result in civil or criminal penalties, or both.

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Tax Tips for August 2024

Tax Tips for June 2024

by | Jun 3, 2024 |

Click on the links below to jump to each section in this article: Help Prevent Financial Scams Aimed at Older People Boost Your Home Improvements with Tax Credits Tax Breaks for Increasing Accessibility   Help Prevent Financial Scams Aimed at Older People In any season, scam artists are seeking new ways to steal financial data and money from vulnerable people. Such fraudulent activities often target older adults. Here are three ways to help prevent elder financial abuse and fraud, whether you’re in this age bracket or you share them with senior loved ones: Exercise caution when making financial decisions. If someone exerts pressure or promises unreasonably high or guaranteed returns, walk away. Be alert for phony phone calls. The IRS doesn’t collect money this way. Another scam...

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