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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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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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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Paying income taxes is the obligation of all Americans. While we are happy to pay our fair share, no one wants to pay too much income tax. That is where tax deductions and credits come into play. U.S. Congress has written the tax code; all 4 million words of it; to allow individuals and businesses…
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You are running your very own online e-commerce store; How exciting, but e-commerce sales tax laws, not so much. We know sales tax can really kill your energy. This blog will better explain the various sales tax rules for e-commerce businesses. When must your E-Commerce business start Administering sales tax? Your eCommerce business must charge…
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One of the more popular uses of the Section 179 Deduction has been for vehicles. In fact, several years ago the Section 179 deduction was sometimes referred to as the “Hummer Tax Loophole,” because at the time it allowed businesses to buy large SUV’s and write them off. While this particular use (or abuse) of…
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Accountable Plans A plan under which an employee is reimbursed for expenses or receives an allowance to cover expenses is an accountable plan only if the following conditions are satisfied: there must a business condition for the expenses the expense must be in connection with performance of services as an employee the reimbursement must be…
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Federal Tax Credit A federal tax credit for the purchase and installation costs of a residential solar system is fading away. After being 30% of the cost for several years through 2019, the credit amount drops to 26% in 2020 and then 22% in 2021, the final year of the credit. The solar tax credit…
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Effective Management of Business Finances Most small business owners and entrepreneurs juggle every aspect of business management, from administrative tasks to bookkeeping and accounting duties. Many small business owners and entrepreneurs reach a point where managing every task becomes overwhelming and an ineffective use of time. Effective management of business finances is critical for reporting,…
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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…
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