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U.S. Citizens Living and Working Abroad

If you are a U.S. citizen living and working abroad, you face potential tax implications. The United States has a taxation system that requires its citizens to report and potentially pay taxes on their worldwide income. In other words, as a U.S. citizen, you remain subject to U.S. tax obligations, even when living abroad. Overview […]

Using a Vacation Home as a Rental Property and for Personal Use

Using a Vacation Home as a Rental Property and for Personal Use When you use a home for both rental and personal use, regardless of that home’s location at the beach or in the city, you run into the tax code’s vacation home rules that make that home either a residence or a rental property. […]

A Brief Overview of Non-Fungible Tokens (NFTs)

A Brief Overview of Non-Fungible Tokens (NFTs) Did you buy, sell, donate, or receive an NFT during the tax year? If so, you must answer “yes” to the digital assets question on page one of the IRS Form 1040. Additionally, if you have sold an NFT, you could be liable for tax or eligible for […]

Boiled Down View of Meals and Entertainment

What You Need to Know About the IRS Trust Fund Recovery Penalty

What You Need to Know About the IRS Trust Fund Recovery Penalty If you are an employer who withholds income tax, Social Security and Medicare taxes from your employees’ paychecks, you have a legal obligation to pay those taxes to the IRS on time. These taxes are called trust fund taxes because they belong to […]

Is Your Sideline Activity a Business or a Hobby?

Is Your Sideline Activity a Business or a Hobby? Do you have a sideline activity that you think of as a business? From this sideline activity, are you claiming tax losses on your Form 1040? Will the IRS consider your sideline a business and allow your loss deductions? The IRS likes to claim that money-losing […]

Send Tax Documents Correctly to Avoid IRS Issues

You have heard the horror stories about mail sent to the IRS that remains unanswered for months. The IRS has mountains of unanswered mail pieces in storage trailers, waiting for IRS employees to process them. Because the understaffed IRS is having so much trouble processing all the documents it receives, you need to protect yourself […]

Self-Employed During the Pandemic? Lawmakers Did Not Forget You

Usually, in times of economic dislocation such as the COVID-19 pandemic, the self-employed get no special government help. For example, you generally do not receive benefits that employees get, such as unemployment and paid sick leave. But this time it’s different. Because of the COVID-19 pandemic, you can qualify for the following seven benefits: Paycheck […]