Part 4 of 5. Do You Have a Year-End Tax Savings Strategy?
The following are some of the areas you could explore as tax breaks to help you minimize your taxable income as part of your year-end tax planning strategy. Reduction in Business Interest Limitation. The CARES Act reduced the limitation on the deductibility of...
Part 3 of 5. Do You Have a Year-End Tax Savings Strategy?
The following are some of the areas you could explore as tax breaks to help you minimize your taxable income as part of your year-end tax planning strategy. Child and Dependent Tax Credit. For 2020, you may claim as much as a $2,000 credit for each child under age...
Part 2 of 5. Do You Have a Year End Tax Savings Strategy?
The following are some of the areas you could explore to gain tax breaks to help you minimize your tax liability as part of your year-end tax planning strategy. Prepay Expenses Using the IRS Safe Harbor. IRS regulations contain a safe-harbor rule that allows...
Part 1 of 5. Do You Have a Year-End Tax Savings Strategy?
Tax legislation enacted at the end of 2019, as well as new tax laws enacted in 2020 in response to the coronavirus pandemic (COVID-19), will affect your 2020 income tax return. These legislations contain many new provisions which are likely to minimize your 2020 tax...
Setting Up Your Business
Starting a business could be very exciting. Regardless of the type and size of your future business, you must conduct your research and get professional advice before you start your business. You could learn a lot from a successful business owner. Many professionals...
Do You Legally Claim Your Business Travel Deduction?
There is what is called the “unpardonable sin" in an IRS audit. As self employed or business owner when you received a letter from the IRS telling you that you are the subject of an IRS audit, there is one record that receives special attention. This record can create...
Are You a Head of Household For Tax Filing Purpose?
Many taxpayers have been audited by the IRS because they illegally claim either the earned income tax credit (EITC) and child tax credit (CTC) or other credits because they claimed their children on their tax return. In many cases, the credits were disallowed because...
Are You Using Your Home as A Home Office?
The COVID-19 pandemic is still impacting our lives. You may be spending more time working from home. It is likely that you may have taken some extra rooms or a corner of your home for your business use.IRC Section 280A(c) states that you may claim a home office based...
Have You Filed Your Tax Returns?
The deadline to file your tax return, if you requested an extension, is October 15. It is reported by the IRS that an estimated 11,000,000 taxpayers do not file their tax return each tax year period. As a result, every tax year million of taxpayers leave unclaimed...
Minimizing Your Tax Liability in Case of Divorce
All financial transactions have tax consequences, including divorce. The tax consequences that come with divorce have changed for tax years 2018 and later because of the new tax law (Tax Cuts and Jobs Act of 2017 (TCJA). As a general tax rule, in a divorce you can...