Tax Brackets

Currently there are seven tax brackets ranging from 10% to 37%. The dollar amounts that define these brackets change depending on varying factors.  These factors include whether or not you are a single filer – or are you married? Filing jointly or separately? Are you the head of your household?  The brackets vary depending onContinue reading Tax Brackets

Cost Segregation Study

I want to talk to you about how cost segregation studies can help you in your business. But, before we get into this, I want to backtrack a bit. Let’s talk about depreciation.  Simply put, depreciation is the “useful life” of something. Just about everything can be depreciated: computers, furniture, cars, rental properties, and soContinue reading Cost Segregation Study

How to Deduct Legal Fees

The Tax Cuts and Jobs Act (TCJA), known as tax reform, made it more difficult for you to deduct your legal fees. The new tax reform law suspended your legal fees as 2 percent miscellaneous itemized deductions. This means you need to look for other ways to deduct legal fees, such as claiming them asContinue reading How to Deduct Legal Fees

Tax Reform Beat-Up Entertainment

You can no longer receive a tax deduction for business entertainment and meal expenses, however, you get a 100% deduction on meals served at business presentations.  Why is this? Let’s consider a few examples: Example 1. Hudson, a network marketer, invites clients and prospects to an educational mixer. He does a one-hour presentation and thenContinue reading Tax Reform Beat-Up Entertainment

Rent From Your Spouse

You know what can eat up your profits? That 15.3 percent self-employment tax.  As a sole proprietor, you probably already know this. Let me tell you about a simple strategy to ease this tax burden, and this involves utilizing your spouse. First things first, you have to create your own entity.  If you own anContinue reading Rent From Your Spouse

Failure to File

If you didn’t issue Form 1099s to your contractors, don’t freak out! I’m here to help. Since you failed to file From 1099s, the IRS is probably auditing your tax return. The auditor is claiming you lose your deductions because you didn’t issue the Form 1099s. Is this correct? You’ll be happy to hear theContinue reading Failure to File