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
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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
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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
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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
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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 »
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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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.)
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If you borrow money to invest, the interest you pay may be deductible. The investment interest deduction can offset part of the tax on your investment income. Here is how it works and how to claim it. What counts for the investment interest deduction? Investment interest is interest on money you borrow to buy property
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W-4 allowances were removed in 2020. Here’s how the 2026 Form W-4 works, what’s new from the 2025 tax law, and why California’s DE 4 still uses allowances.
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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.
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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
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Every paycheck has two kinds of federal tax taken out: FICA tax and income tax withholding. They work very differently. This guide explains how FICA tax and withholding work in 2026, and what that means for salary, bonuses and equity pay. What is FICA tax? FICA stands for the Federal Insurance Contributions Act. FICA tax
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How to determine what your business is worth There are many reasons to have an up-to-date business valuation. For example: You may need to sell the business due to retirement, health, divorce, or family reasons. You may need debt or equity financing for expansion or due to cash flow problems. Potential financiers or investors will
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