THE ABC’S OF TAX PLANNING

Alimony Deduction, Auto for Business, or Annuity Investments Bonus Depreciation, Bunching Deductions Charity Contributions, Capital Gains/Losses, Childcare Credit Deductions and Dependents Education Credits Filing Status or Flexible Spending Account Gifts, Gambling Losses Health Savings Accounts or Home Offices Installment Sales and IRA Contributions Like Kind Exchanges Meals for Business, Medical Expenses, Military Moving Points, Property…

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You need to get an Identity Protection PIN (IP PIN)

Tax Return Filing Fraud is on the Rise! An Identity Protection PIN is a six-digit number that adds a layer of security to your income tax filing. Starting in 2021, taxpayers may request an IP PIN before they are victims of identity theft. I recommend doing this as a proactive way to protect yourself from…

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Business Meal Deductibility

  Amount Deductible for Tax Years 2021-2022 Description 100% 50% Zero Restaurant meals with clients and prospects X Entertainment such as baseball and football games with clients and prospects X Employee meals for convenience of employer, served by in-house cafeteria X Employee meals for required business meeting, purchased from a restaurant X Meal served at…

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ENTITY SELECTION

ASSET PROTECTION Myth: The best asset protection comes from entities formed in Delaware, Nevada, or Wyoming. Fact: This is one of the biggest misunderstandings in asset protection. Unless you are doing business in these states, your entity is not going to receive any asset protection by forming in these states. You will pay more in state fees…

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ROTH IRA’S

The Pros and Cons Roth IRAs do not give the taxpayer a tax deduction for the year contributions is made. So why would you want to invest your retirement savings in a Roth? One reason is that all distributions taken out after 5 years of setting up a Roth and after the taxpayer reaches age…

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LOSS DEDUCTIONS For Profit or a Hobby?

Deducting business losses on your tax return can get you a free IRS audit. If the activity is deemed to be a hobby and not a business it can also get you additional taxes, penalties, and interest. Income from a hobby is taxable but the expenses are not deductible. Not very fair, but who said…

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WHAT BUSINESS MEALS ARE 100% DEDUCTIBLE FOR 2021 AND 2022

To help the COVID-19 ravaged restaurant industry, Congress is allowing a temporary 100% deduction for business meals provided by a restaurant. The term “restaurant” means a business that prepares and sells food or beverages to retail customers for immediate consumption, regardless of whether the food or beverages are consumed on the business’s premises. In the…

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NOT ALL APRIL DEADLINES WERE MOVED BACK TO MAY

X – TRUST RETURNS X – FIRST QUARTER ESTIMATED TAX PAYMENTS Individual taxpayers can wait to file their 2020 tax returns and pay the balance due on these returns. The Internal Revenue Service has extended both deadlines to May 17, 2021. However, first quarter estimated tax payments are still due April 15, 2021. Many taxpayers…

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