Tax

  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…

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…

What hoops must you jump through to deduct a legit home office? Well, first your home office must be your primary place of business for a specific business of yours. Either you spend more time in your home office than your away from home office, or you make your home office an administrative and/or management…

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…

President Biden and the Democrats in the Senate each have a plan. The Biden Plan: • At death, the inherited asset would be deemed to have been sold with gain or loss being reported on the decedent’s final return. • The heirs would get the basis reported as the selling price on the decedent’s final…

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…

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…

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…

(Do not be Lured into Filing Later) According to a report from the General Accounting Office, each year the Internal Revenue Service pays out billions in fraudulent refunds to identity thieves. That’s billion with a “B”. Do not let your refund go to the thieves! Protect yourself by filing as early as possible. The extended…