When you understand the rules for business mileage, you'll be able to make better decisions.
Take, for example, Mahali. He deducted 30% of the cost of her SUV before she learned the mileage rules. She deducted 92 percent after learning the rules.
Consider Thando, who lost almost all of her vehicle deductions due to an IRS audit.
Follow Mahali's example. Here's how to do it.
Please do not hesitate to contact me if you have any questions about your business vehicle.
You likely did not have this top of mind.
Why are tax credits so intriguing? What’s the game changer?
In contrast to deductions, tax credits reduce your tax bill by the dollar. You can reduce your tax bill by $20,000 if you donate $100,000 and obtain a 20 percent tax credit. This is Uncle Sam's pocket pocketing $20,000. There is more!
You can reduce your taxes through depreciation strategies for the remaining $80,000, and also qualify for a State rehabilitation Credit.
The rehab credits help with allowing you to build generational wealth using State and Federal tax credits with your property.
You want to ensure you satisfy the four requirements for the historic rehabilitation credit. We can help!
There is a 20% tax credit at the federal tax level, some states provide a 50% tax credit, which reduces your total costs by up to 70%.
As you can see, the historic rehab credit is a lot to consider. Please do not hesitate to contact us at 262-358-8297 if you want to discuss the historical Rehab credits.
You should have a party with your staff and deduct 100% of the cost when you understand the rules.
According to the IRS, two forms of entertainment are eligible for the entire employee entertainment tax deduction:
The IRS emphasizes that the two forms they specify are only examples and that other forms of entertainment might also be eligible for the full entertainment deduction. “Expenses for leisure, social, or related events (including services therefor) solely for the benefit of employees,” according to the tax code, are eligible for a 100 percent deduction.
Business or investment property owners, has your value gone up?
What do you think about a new acquisition?
Instead of paying profits on your property once you sell it, how about entertaining the option to defer your taxes?
With Tax deferral transactions, you will be able to sell and buy a property and pay zero taxes in late deferred transactions.
In this deferred tax transaction, you will not be exchanging property; instead will be replacing property.
The rules defined by the IRS are complex and contain strict time limits to identify and acquire the property. Furthermore, the Tax Cuts and Jobs Act (TCJA) has eliminated prior privileges.
The use of the tax deferred transaction in combination with accelerated depreciation methods makes this authentic tax saving strategy one for the books!
Please contact us if you wish to discuss the possible use of tax deferral transactions to upgrade your rental and commercial property portfolio.
You probably miss getting together with your prospects, clients, and staff for parties and company meals?
Prepare to begin the process all over again. COVID-19 will be a distant memory before we know it. It could happen within the next few months.
Check out the below to see what you can do now, as the law stands, in 2021 and 2022:
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Spencer Accounting Group, LLC does not provide investment, tax, legal, or retirement advice or recommendations in these blogs. The information presented here is not specific to any individual's personal circumstances.
Keana Spencer is an Accountant, Entrepreneur, and Educator to her clients, with a strong passion. Keana has over 10 years of experience and through her practice, she is a source of knowledge and strategies to her clients.