The 1099-NEC and 1099-MISC threshold rose from $600 to $2,000 for 2026 payments. See what changed, what didn’t, and California’s $600 rule. Book a review.
The 1099 Threshold Is Now $2,000: What Changes for Payments You Make in 2026 Read More »
For self-employed professionals and small business owners in the San Francisco Bay Area, understanding how to structure your business can significantly impact your tax liability and retirement contributions. At Flex Tax and Consulting Group, we help clients across San Francisco, Castro Valley, and the greater Bay Area make informed decisions about tax strategy, entity selection,
A real estate investment trust (REIT) lets investors own income-producing real estate through shares. REITs get special tax treatment. However, to form a real estate investment trust, a company must meet strict organizational, operational, distribution and compliance rules. Here is a general summary. How a real estate investment trust must be organized A U.S. REIT
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An earlier version of this article was written with wikiHow and featured on its website. We updated and shortened it for 2026. Before you can improve your financial health, you need to analyze your current finances. Start by tracking your spending for a month. Then look at where most of your money goes. After that,
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An earlier version of this article was written with wikiHow and featured on its website. We updated it for 2026. If you earn a salary, you still have ways to lower your tax bill. First, you can shrink your taxable salary income with pre-tax contributions to retirement and health accounts. Then you can claim every
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Tax-exempt status doesn’t mean a nonprofit skips the IRS. Even an organization exempt under Section 501(c)(3) usually must file a nonprofit tax return every year. Also, a nonprofit may still owe tax on income unrelated to its exempt purpose, and it must handle payroll taxes for paid staff. Here is how to prepare a nonprofit
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If you run a business from home, you may use more than one room for work. So how many rooms can you count for the home office deduction? The short answer: there is no set number. The rule for the home office deduction Under Section 280A(c), you can claim a home office based on the
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 or just right? Why your S corporation salary matters Getting the salary right is important, for three reasons. Taxes and penalties. If the IRS finds your salary too low, you will owe
Avoid Trouble: Don’t Let the IRS Set Your S Corporation Salary Read More »
Limited liability companies (LLCs) are a popular choice for small businesses and investment activities. This guide covers the most important things to know about limited liability companies, from legal protection to federal income tax treatment. Who owns limited liability companies? LLC owners are called members. An LLC can have one member or many. Single-member LLCs
All About Limited Liability Companies (LLCs) Read More »
People often use “nonprofit,” “charity” and “foundation” as if they mean the same thing. However, for tax purposes, the key difference is between a public charity and a private foundation. Both are usually nonprofits exempt under Section 501(c)(3). Still, they differ in funding, rules and tax treatment. Here is a simple guide to nonprofit vs
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One advantage of running a business as a partnership is the right to make special allocations of tax items among the partners. You get the same option if you run your business as an LLC taxed as a partnership. This guide explains how special allocations work and why they matter. What are special allocations? A
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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
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Tenant allowances are payments a lessor makes to a lessee to provide the tenant with funds to prepare the rented space for its intended business use. Generally, the tenant treats a tenant allowance received from the landlord as an ordinary income. Normally, the tenant would recognize income when the allowance received and depreciate the assets
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The IRS treats cryptocurrency and other digital assets as property, not currency. So many everyday crypto transactions have tax consequences. In addition, brokers now report crypto sales to the IRS on a new form. This guide explains how cryptocurrency is taxed in 2026 and what to do if the IRS contacts you. How cryptocurrency is
How Cryptocurrency Is Taxed in 2026 (Including Form 1099-DA) Read More »
The IRS issued interim guidance on how eligible small businesses can take advantage of a new provision that allows them to apply part or all of their Sec. 41 research tax credit against their payroll tax liability instead of their income tax liability. Before 2016, taxpayers could only take the research credit against their income
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Some people who give up U.S. citizenship can get expatriate tax relief from the IRS. Under special procedures announced in 2019 (News Release IR-2019-151), certain former citizens may avoid the exit tax under Section 877A. In addition, they may avoid other unpaid taxes and penalties. Who can use expatriate tax relief? The relief applies to
IRS offers expatriate tax relief Read More »
If a federally declared disaster damages your property, you may be able to deduct the casualty losses a year early. Under Section 165(i), you can elect to claim the loss on your return for the year before the disaster. As a result, you may get a refund sooner, when you need cash most. Which casualty
Taxpayers may deduct casualty losses in prior years Read More »
Among your responsibilities as an employer is the requirement to collect, report, and pay payroll tax as required by federal and state laws. Helping clients avoid employment tax criminal penalties. If you are a corporate officer or other “responsible party,” as defined by the IRS, you may be personally liable for payroll taxes not reported
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Smaller businesses have more ways to use the R&D credit than many owners realize. In particular, qualifying companies can claim the R&D credit against payroll taxes or the alternative minimum tax (AMT). How the PATH Act expanded the R&D credit The Protecting Americans From Tax Hikes Act of 2015 (PATH Act) helped businesses that spend
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Limited liability companies are everywhere today. Because their management structure is flexible, LLCs have become a common way to own and run a business. Doctors, lawyers, accountants, engineers and software companies all use them. Many other small businesses do too. LLCs give their owners, called members, the liability protection of a corporation. At the same
Accounting for LLC Conversions Read More »
Angel investors and founders often overlook one of the biggest tax breaks for startups. Section 1202 lets you exclude some or all of your gain when you sell qualified small business stock (QSBS). Although people sometimes call it a credit, it is actually an exclusion from income. And for a successful exit, it can save
The Angel Investor Tax Break That Could Save You Millions (Section 1202) Read More »
Qualified small business stock (QSBS) can let founders, employees and investors sell C corporation shares partly or fully free of federal income tax. The benefit comes from Section 1202 of the tax code. However, the rules are strict, and the 2025 tax law changed them for stock issued after July 4, 2025. This guide explains
QSBS: How to Sell C Corporation Shares Partly or Fully Tax-Free Read More »
Your 2026 year-end tax planning checklist: new charitable and SALT rules, 401(k) and IRA limits, business depreciation, and deadlines through April 2027.
2026 Year-End Tax Planning Checklist for High Earners, Business Owners & Investors Read More »
IRS rolled out a new tool to prevent nasty refund surprises at tax time This tax season a bunch of stories hit the press full of taxpayer grumbling about bigger bills and smaller refunds. If this happened to you, that might be a cue to adjust the amount that your employer (or you, if you’re
TIME FOR A WITHHOLDING CHECKUP? Read More »
Home- and Mortgage-Related Deductions Mortgage interest deductions capped In the past, homeowners who took itemized deductions could count interest payments on debt related to buying, building or “substantially improving” a home — on debt up to $1 million. That’s been capped at $750,000 and applies to homes purchased after Dec. 15, 2017. Homes bought prior
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