You may have heard you cannot claim a home-office deduction without business income. That’s not accurate. Points to Consider • Claim business deductions with no business income. Even if your business did not generate income this year, you should claim all business deductions. Such deductions might create a net operating loss, which would carry forward…… Read More

When you own and operate a business, you must exercise vigilant oversight, including watching over your payroll taxes. Here’s an example of why. Rodney Taylor entrusted his corporation’s accounting and bookkeeping to Robert Gard, CPA. Over several years, Mr. Gard embezzled between $1 million and $2 million, including payroll taxes. Despite Mr. Gard’s wrongdoing, the…… Read More

On January 1, 2024, the Corporate Transparency Act (CTA) was enacted. The CTA requires most smaller corporations, most limited liability companies, and other business entities to file a beneficial ownership information (BOI) report with the U.S. Department of the Treasury Financial Crimes Enforcement Network (FinCEN). The BOI report identifies and provides contact information for the…… Read More

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… Read More

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.… Read More

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… Read More

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… Read More

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… Read More

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… Read More