Flex Tax and Consulting Group (FTCG)
Photo by Tierra Mallorca on Unsplash The following offers a general summary of the basic tax law requirements applicable to REITs. To qualify as a REIT, an entity must meet a number of organizational, operational, distribution, and compliance requirements. How must a real estate company be organized to qualify as a REIT? How do REITs […]
How to Form a Real Estate Investment Trust (REIT) Read More »
This article was authored working with wikiHow, the world’s largest “how to” site, and also featured here on the wikiHow website. Before you can improve your financial health, you need to analyze your current finances. Keep track of your expenses for a month and look at where you are spending the most. Use extra money to
How to Analyze Your Current Finances Read More »
This article was authored working with wikiHow, the world’s largest “how to” site, and also featured here on the wikiHow website. While you may have heard that nothing is certain but death and taxes, it is possible to reduce your US taxes to nearly zero, even when you’re paid a salary. Reduce your taxable income
How to Reduce Your Taxes on Salary Income Read More »
This article was authored working with wikiHow, the world’s largest “how to” site, and also featured here on the wikiHow website. Even if a nonprofit organization has achieved tax-exempt status, for example under Section 501(c)(3), the organization is likely still required to file a tax return annually. If your nonprofit has employees that are paid, or takes
How to Prepare a Tax Return for a Nonprofit Read More »
With the COVID-19 pandemic still going on, you may be spending more time working from your home office. You may have taken some extra rooms for your business use. Is that okay? Section 280A(c) states that you may claim a home office based on the portion of the dwelling that you use exclusively and regularly
How Many Whole or Partial Rooms Can You Use for Your Home Office? Read More »
You likely formed an S corporation to save on self-employment taxes. If so, is your S corporation salary nonexistent? too low? too high? just right? Getting the S corporation salary right is important. First, if it’s too low and you get caught by the IRS, you will pay not only income taxes and self-employment taxes
Avoid Trouble: Don’t Let the IRS Set Your S Corporation Salary Read More »
During this COVID-19 pandemic, landlords have two big possible problems: Tenants who can’t pay the rent. Tax losses they can’t deduct. We’ll start with the tenants and then move on to the rental property tax-loss issues. For the first time in U.S. history, residential landlords are subject to a sweeping nationwide federal moratorium on evictions
Government to Landlords: Drop Dead! Read More »
Limited liability companies (LLCs) are a popular choice of entity for small businesses and investment activities. LLC owners are called members. Single-member LLCs have one owner, although spouses who jointly own an LLC in a community property state can elect treatment as a single member LLC for federal income tax purposes. We will call LLCs
All About Limited Liability Companies (LLCs) Read More »
As you read this, it’s likely that your lawmakers are working on the next Payroll Protection Program (PPP) package. And hopefully, in this next package they will include a provision that allows you to deduct business expenses that you pay with your PPP money. Let’s explain. In the CARES Act, Congress said: For purposes of
Raise Hell: Help Lawmakers Make PPP Expenses Tax Deductible Read More »
Whether you claim a business office in the home or are simply working at home, say because of COVID-19, you likely have some former personal assets that you now use for business. Ah, new tax deductions! Yep. Say you don’t claim a home-office deduction but now you are working at home and sitting in the
Working at Home? Don’t Overlook These Deductions Read More »
How much is clarity worth? A lot, a whole lot. And how much is making things easier worth? Of course, it’s a lot, a whole lot, too. We now have both the new (a) clarity and (b) easy road to Paycheck Protection Program (PPP) loan forgiveness for the self-employed with no employees. Get ready to
Government Clarifies PPP Loan Forgiveness for the Self-Employed Read More »
We have already known a lot of charity entities in the world. They always had different operating under different business types; foundations, nonprofit organizations, or charities participate in our daily activities. We may use these terms incorrectly and interchangeably. Although all the organizations mentioned are to help the less fortunate in society, they differ in
What is the difference between a nonprofit and foundation? Read More »
Internal Revenue Code § 121 provides taxpayers with an income tax exclusion from the gain of taxpayer selling a primary residence. The exclusion amount for a single up to $250,000 and married couples will raise to $500,000. To qualify for the exclusion, the taxpayer-owned and used the property as the taxpayer’s principal residence for periods
Nonresident Aliens and The Section 121 Principal Resident Exclusion Read More »
If you operate your business as a partnership or an S or C corporation, you face entity-specific Payroll Protection Program (PPP) loan forgiveness rules that apply to you as an owner-worker in the business. The rules that apply to you do not apply to the rank-and-file employee group. The government puts you, the owner-worker, in
PPP Loan Forgiveness for Partnerships and S and C Corporations Read More »
One of the advantages of operating a business as a partnership is the right to make special allocations of tax items among the partners. You have the same opportunity if you run your business as an LLC that’s treated as a partnership for federal tax purposes. What Is a Special Tax Allocation? A special tax
Take Advantage of Partnership Special Allocation Read More »
The PPP free-cash program to assist businesses during the COVID-19 pandemic is gaining traction and clarity. If you operate your business as a partnership, you have several recent developments that make the free-cash program more to your benefit. Partner’s Self-Employment Income Creates Cash and Forgiveness Just as sole proprietors failed originally to ask for their
Six Insights into the PPP for Partnerships Read More »
Since the CARES Act passed, there has been a lot of talk about getting funding to businesses to help the economy. Businesses received some relief through Payroll Protection Program loans, Economic Injury Disaster Loans (EIDL),-Employee Retention Credits and an increase in the allowable business interest deduction limit, to name a few. But what about the
Update as of June 3, 2020: Small businesses may soon find more flexibility in the Paycheck Protection Program (PPP) as a bill passed the House on Thursday that would extend the time in which companies need to spend funds and alter the rule that they must pay 75% of the funds on the payroll for
What Can You Spend Your PPP Forgivable Loan on? Read More »
Payroll Protection Plan – Forgivable Loan That You Should Get Many small business owners who have been approved for Paycheck Protection Program loans (“PPP”) are realizing that the loan isn’t as forgivable as they’d hoped. The amount a small business can qualify to have forgiven must primarily be payroll costs. The SBA’s rule-making has stated
How to get your PPP Loans Forgivable? Read More »
Marrying or Married to a Non-Resident Alien? Filing Status Information The IRS defers stating or foreign law to determine whether you have a valid marriage. In most cases, a marriage in a foreign country is valid for U.S. tax purposes. “Can I File Single if Married to Non-Resident Alien?” Generally, no, you can’t file single
Filing Taxes When Marrying a Non-U.S. Citizen Read More »
For some of you, stock compensation is a big part of your current compensation package. Restricted stock unit or RSU, is probably one of the most common types of stock compensations nowadays. This week I will list six things that I think you need to know about your RSUs. 1. Restricted Stock Units vs. Restricted
7 Things You Need To Know About Your Restricted Stock Units (RSUs) Read More »
The IRS provides you with a choice of two methods for claiming business mileage on your taxes. You can use the actual expenses method to calculate your mileage deduction, which requires adding up all of the money spent operating your vehicle and multiplying it by the percentage that you used it for business. Or, you
How to Calculate Mileage Deductions on Your Tax Return Read More »
On Friday, the IRS announced the opening of its Free File program, which provides free electronic filing to qualifying taxpayers, generally those who earned $66,000 or less last year. The program is opening before the regular filing season, which will begin Jan. 28, and is available only through the IRS website at irs.gov/freefile. After they access
IRS announces Free File launch Read More »
Responding to concerns that some partnerships required to report capital account information may be unable to comply, the IRS is postponing the requirement to report partners’ shares of partnership capital on the tax-basis method for 2019 (for partnership tax years beginning in calendar 2019) until 2020 (for partnership tax years that begin on or after
Partnership capital reporting requirements postponed until 2020 Read More »
