Category: LNK Tax Group

What to do if you have not filed your income tax return

Whether you simply forgot to file your tax return or decided not to do so because you were unable to pay your taxes, it is important that you file your past due tax return as soon as possible. The Internal Revenue Service will start to assess penalties or fines for every month past the original…
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Should I Itemize?

Should I Itemize?

Although itemizing takes more work than using the standard deduction, it makes sense in many cases. In some cases, you may not have a choice. This blog will help you understand when you do not have a choice and when itemizing is better if you have a choice.  When Itemizing Is Necessary?  Some people are required…
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Reasonable Compensation for S Corporation Officers

Reasonable Compensation for S Corporation Officers

Under IRS rules, S corporation officers are treated as employees for tax purposes. This means that an S corporation must pay reasonable compensation to its officers in exchange for the services they provide instead of simply treating payments as distributions. The IRS closely looks at the compensation paid to S corporation officers and the distributions…
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Casualty Loss and Tax Deductions

Casualty Loss and Tax Deductions

Losing personal property to disaster or theft can be traumatic, especially if it is a home, vehicle, or prized family heirloom. Even though in some cases replacement of lost property is impossible, the Internal Revenue Service provides a means by which theft or disaster-related property loss (also known as “casualty loss”) can be claimed and…
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What to Know About the Tax Treatment of Wages and Salaries

What to Know About the Tax Treatment of Wages and Salaries

If you receive wage income at any point during the calendar year, you will likely need to include it on your federal income tax return. This is true whether you’re an employee of a company that you don’t own, an employee of a corporation that you do own, or a sole proprietor. In most cases,…
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Tax Deadline Delayed 2020

Tax Filing and Payment Deadline Extended to May 17, 202

Tax Filing and Payment Deadline Extended The Treasury Department and Internal Revenue Service announced today that the federal income tax filing due date for individuals for the 2020 tax year will be automatically extended from 04/15/2021, to 05/17/2021. The IRS will be providing formal guidance in the coming days. “This continues to be a tough…
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Taxable Fringe Benefits vs. Nontaxable Fringe Benefits

Taxable Fringe Benefits vs. Nontaxable Fringe Benefits

As a small-business owner, you may choose to provide yourself and your workers fringe benefits. To avoid any surprises at tax time, it’s important to understand how to treat fringe benefits. As a small-business owner, you may choose to provide your workers with fringe benefits on top of their normal pay rate. Fringe benefits are…
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PPP Loan and the Economic Aid Act

PPP Loan and the Economic Aid Act

The United States Small Business Administration (SBA), in connection with the Treasury Department, announced that the Paycheck Protection Program (PPP) will re-open the week of January 11 for new borrowers and certain existing PPP borrowers. To promote access to capital, initially only community financial institutions will be able to make First Draw PPP Loans on…
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Qualifying as a Real Estate Professional and Deducting Passive Losses

Qualifying as a Real Estate Professional and Deducting Passive Losses

A taxpayer can overcome the presumption that all rental activities are passive if the taxpayer qualifies as a real estate professional by satisfying the two tests of Sec. 469(c)(7)(B): More than one-half of the personal services performed in trades or businesses by you during the tax year are performed in real property trades or businesses…
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Do I Need an LLC to Start a Business?

Do I Need an LLC to Start a Business?

You do not need an LLC to start a business, but for many businesses the benefits of an LLC far outweigh the cost and hassle of setting an LLC up. An LLC, or limited liability company, provides personal liability protection and a formal business structure. You can also get those things by forming a corporation…
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