Flex Tax and Consulting Group (FTCG)
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 »
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
Tax treatment of tenant allowances Read More »
IRS Tax Treatment of Cryptocurrency “hard forks”and “airdrops” A “hard fork” of a cryptocurrency owned by a taxpayer does not result in gross income for a taxpayer. If the taxpayer receives no units of the new cryptocurrency. However, taxpayers receiving an “airdrop” of units of a new cryptocurrency after a hard fork have ordinary
IRS clarifies the tax treatment of cryptocurrency 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
How small businesses can apply the research credit to payroll taxes Read More »
Certain individuals who expatriate from the United States may obtain relief from the exit tax of Sec. 877A and other outstanding tax liabilities, under procedures, the IRS outlined Friday on its website and announced in News Release IR-2019-151. The relief applies to individuals who relinquished or will relinquish their U.S. citizenship after March 18, 2010, and meet several
IRS offers expatriate tax relief Read More »
In T.D. 9878, the IRS finalized proposed regulations (REG-150992-13) it had issued in 2016, without changes, and removed temporary regulations (T.D. 9789) published in connection with the proposed regulations. Under the final regulations, as under the temporary and proposed regulations, taxpayers that want to elect to deduct a disaster loss in the tax year preceding
Taxpayers may deduct casualty losses in prior years Read More »
The IRS on Wednesday issued the 2020 annual inflation adjustments for many tax provisions as well as the 2020 tax rate tables for individuals and estates and trusts (Rev. Proc. 2019-44). These adjusted amounts will used to prepare the tax year 2020 returns in 2021. Many amounts will increase in inflation in 2020. The standard
IRS posts 2020 inflation adjustments and tax tables Read More »
The IRS on Tuesday updated the rules for using per-diem rates to substantiate the amount of ordinary and necessary business expenses paid or incurred. While traveling away from home in light of changes enacted by the law known as the Tax Cuts and Jobs Act (TCJA), P.L. 115-97 (Rev. Proc. 2019-48). The revenue procedure supersedes and
Per-diem method clarified in light of TCJA changes 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
Helping clients avoid employment tax criminal penalties Read More »
Smaller taxpayers now are afforded greater flexibility. The Protecting Americans From Tax Hikes Act of 2015 (PATH Act), P.L. 114-113, contained several provisions favorable to taxpayers that incur qualified research and development (R&D) expenditures. Perhaps most importantly, it made permanent the previously temporary credit for increasing research activities (R&D credit) and added provisions allowing
Claiming the R&D credit against payroll tax or AMT Read More »
Today, limited liability companies can be found everywhere. With their flexible management structure, LLCs have become a common way to own and operate a business. Professionals (doctors, lawyers, accountants, and engineers), as well as software and computer-based companies and a wide array of other small businesses, are increasingly using this form of organization. LLCs offer
Accounting for LLCs Conversions Read More »
Deciding Between an Asset Sale or Entity Sale Businesses can be sold, and their assets transferred, either through an asset sale or entity sale.1 In an asset sale, the entity sells its tangible and intangible assets to the buyer, while the entity’s owners retain equity in the entity. On the other hand, in an entity sale,
Deciding Between an Asset Sale or Entity Sale Read More »
Many investors are now wondering how to invest in Opportunity Zones themselves. In addition to considerable immediate and long-term tax advantages, Opportunity Zone investments offer wider access to tax incentives. Unlike tax credit programs of the past, Opportunity Zone investments come with significantly fewer restrictions, which opens up access to the new investment option. Despite
How to Invest in Opportunity Zones: Options to Get Started Read More »
Flex Tax and Consulting Group discusses the QSBS election – a method used to sell shares in a C corporation completely or partially income tax-free. Selling shares in a business completely (or partially) income tax-free sounds too good to be true, right? Perhaps not. To the delight of many an owner, if certain qualifications are
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
INVESTMENT-SPECIFIC INTEREST AND TAXES Read More »
With so many forms to complete and numbers to keep track of, tax preparation can quickly become a stressful, time-consuming activity—testing the limits of your patience and taking time away from what’s important. But with some careful record-keeping and organization, you can take away some of that stress and make filing next year’s tax return
FOUR TAX PREPARATION TIPS TO CONSIDER FOR 2020 Read More »
Although nearly 200 million Americans file tax returns every year, not everyone has to. But new tax laws and other filing requirements may have changed. Whether some of these citizens who haven’t had to file before legally require to file a tax return now. Previously, your age, income level, and filing status (married, single, etc.)
DO I HAVE TO FILE TAXES? Read More »
IRS taxes on your net investment income can add up quickly, putting a serious dent in what you’ve made over the past year. Fortunately, the investment tax and interest deduction worksheet may provide a way to offset some of that cost. Help ensure more of that money stays in your pocket. Start by Learning What is
USING THE INVESTMENT TAX AND INTEREST DEDUCTION WORKSHEET Read More »
You can’t avoid federal income taxes. No matter who you are or who you work for, taxes will withheld from your paycheck which can sometimes amount to a sizable chunk of your earnings. Fortunately, there’s the W4 tax from, which allows a bit of latitude when it comes to what your employer can withhold each
WHAT ARE W4 ALLOWANCES? Read More »
You’ve submitted your tax return for the year, so now what do you do? Instead of shoving all your records into a disheveled pile in a closet, now is a good time to get organized. Here are some tips on organizing tax records after you file to make sure you’re ahead of the game next year.
Organized Your Tax Paperwork Read More »
Depending on your business type, there are different ways to prepare and file your taxes. When it’s time to file a federal income tax return for your small business, there are various ways you can do it, depending on whether you run the business as a sole proprietorship or use a legal entity such as
How to File Federal Income Taxes for Small Businesses Read More »
Here are the taxes coming out of your paycheck — and how you can change them. Payroll taxes, including FICA tax, are what your employer deducts from your pay and sends to the IRS, state or other tax authority on your behalf. Here are the key factors, and why it’s important to monitor your withholding tax.
How FICA Tax and Withholding Tax Work in 2019 Read More »
