The Significance of a Joint Tax Return
Filing a Joint Tax Return: What Does Married Filing Jointly Mean? Filing a joint tax return allows married taxpayers to enjoy favorable tax rates. In other words, the total tax is usually lower on a tax return filed with the status of married filing jointly (MFJ). The other types of filing status are single, married […]
Hobby Loss Rules: What to Do?
Hobby Loss Rules: Can You Deduct Hobby Expenses in 2023? Business losses are deductible. Hobby losses are not deductible. So the key question is: what is the difference between a business and a hobby? The hobby loss rules are a trap for new business owners. If the IRS determines that your activity is a hobby […]
HRA for Small Business Owners
HRA Saves Thousands of Dollars in Tax Each Year for Small Business Owners Small business owners save thousands of dollars every year by using Health Reimbursement Arrangements (HRAs). The HRA allows business owners who are also employees in their business to deduct medical expenses as a business expense. This is usually much more valuable than […]
Taxes When Selling a Home
Tax Considerations When Selling a Home Many people move during the summer. We see this in our CPA practice every year. Taxpayers who are selling their home may qualify to exclude all or part of any gain from the sale from their income when filing their tax return. When selling a home or residence, homeowners […]
Atlanta CPA Tip: Quarterly Taxes
Atlanta CPA Reminds about Quarterly Taxes Small business owners, investors and independent contractors who are required to pay quarterly taxes to the IRS should consider the June 15, 2023 deadline to stay current with their taxes. Why Make Quarterly Tax Payments? Taxpayers who do not have their taxes withheld from wages (payroll taxes) are required […]
Compensation: How Much to Pay Yourself
Maximizing Tax Savings for Entrepreneurs: Understanding Reasonable Compensation for LLCs and S Corporations Chances are you’ve seen something online about the potential tax savings of switching from an LLC to an S Corporation. However, most of these articles and videos gloss over the most important input of this decision – how much to pay yourself. […]
409A Valuations and Stock Options
Thanks to the IRS, 409A valuations are a regular part of business for companies that issue stock options to employees. This is the reality for any company that uses stock options as part of its employee compensation, including many early-stage companies. Businesses that issue stock options should get a valuation at least annually. IRS Requires […]
Section 1031 Exchange and Delaware Statutory Trust
Delaware Statutory Trust as a Section 1031 Exchange Solution for Real Estate Investors Section 1031 allows an investor to sell real estate for a gain and then roll the proceeds into another “like-kind” asset. This type of transaction is called a “1031 exchange,” which allows the investor to defer paying capital gains tax on the […]
Expense Deduction for Teachers: $50 Increase
Educator Expenses: A Bit of Good News The IRS increased the expense deduction for teachers by $50! While this is not earth shattering, at least it is a step in the right direction. We like to share good news whenever we can. The Basics of Teacher Tax Deductions Teachers and other educators may now deduct […]
Past Due Tax Returns
Millions of people across the United States do not file tax returns under the mistaken belief that it is best not to file a tax return if they cannot pay the tax. However, past due or unfiled tax returns cause a host of problems. It is both illegal not to file and a strategic mistake. […]