Home Offices provides a tax benefit. That’s the result you achieve when you claim an office in your home.
You must qualify for the home-office deduction, in order to tax the deduction. One of the qualifications is no spouse and only one business. However, most of us are serial entrepreneurs whom are married. Adding a spouse or another business to the equation and this deduction can become more complicated.
The IRS will disallow your home office deduction if you don't follow the rules.
As your business continues to grow, I wanted to make sure that you were aware of these rules.
If you want to ensure you are following the rules, please don’t hesitate to contact us for Tax Strategy Session. We will put together a tax plan for you.
Good news. The Tax Cuts and Jobs Act (TCJA) did not harm the backdoor Roth strategy.
As you likely know, the Roth IRA is a terrific way to grow your wealth with a minimum tax downside because you pay the taxes up front and then, with the proper holding period, pay no taxes after that.
But if you earn too much, you’re completely barred from contributing to a Roth IRA unless you can use the backdoor Roth technique, which involves making a nondeductible contribution to a traditional IRA and then rolling that money into a Roth. Making Tax planning imperative in order to reduce your tax liability!
The backdoor Roth strategy has been around for a good nine years, and it has experienced no trouble that we are aware of, so we think it’s a good strategy. We also like the recent notations in the legislative history and the comments from the IRS spokesperson that show approval of the strategy.
Keep in mind that with some planning, you can avoid any taxes on the rollover. For example, if you have an existing traditional IRA, you can move those monies to your qualified plan to avoid having the backdoor strategy trigger some taxes. And if you have no traditional IRA, the nondeductible contribution to the traditional IRA and the subsequent rollover to the Roth IRA triggers no taxes.
Juneteenth is the oldest nationally celebrated commemoration of the ending of slavery in the United States.
From its Galveston, Texas origin in 1865, the observance of June 19th as the African American Emancipation Day has spread across the United States and beyond.
Today Juneteenth commemorates African American freedom and emphasizes education and achievement. It is a day, a week, and in some areas a month marked with celebrations, guest speakers, picnics and family gatherings. It is a time for reflection and rejoicing. It is a time for assessment, self-improvement and for planning the future. Its growing popularity signifies a level of maturity and dignity in America long over due. In cities across the country, people of all races, nationalities and religions are joining hands to truthfully acknowledge a period in our history that shaped and continues to influence our society today. Sensitized to the conditions and experiences of others, only then can we make significant and lasting improvements in our society.
Copyright of Juneteenth.com
Tax reform may have you thinking of changing your S corporation to a C corporation, partnership, or sole proprietorship.
With such a switch, you need to consider two things one of them are the tax consequences.
If you chose S corporation taxation for your limited liability company (LLC), changing that election is complicated.
If you will like to know if you are in the right entity setup for tax purposes, let us do the work for you. We will provide you with a comprehensive report filled with side by side comparisons of each entity and a snippet of any section 199A deduction you may qualify for. Click the button below to schedule your appointment today.
As a small-business owner, you probably incur work-related education expenses from time to time. You may even decide to pursue an advanced degree, such as a Master of Business Administration (MBA).
You likely want your employees to be on a path of continuous improvement.
There’s much to know about how such business deductions work for both you and your employees. The Tax Cuts and Jobs Act (TCJA) tax reform may trigger a need for you to change your tax strategy to help your continuous learning employees.
Your employees productivity may increase once you strategize around this so you can offer these service to them. For 2018–2025, the TCJA outlaws write-offs for miscellaneous itemized expenses that under prior law were subject to the 2 percent of adjusted gross income (AGI) deduction threshold.
Included in this category are unreimbursed employee business expenses. So for 2018–2025, employees may not take miscellaneous itemized deductions for unreimbursed work-related education expenses.
As an employer, you may need to strategize around educating your employees. As there are three key benefits:
If you would like our help with education possibilities and deductions for you, your business and your employees, call us at 262-358-8297.
There are specific steps that you and your employees need to complete to make this plan viable.
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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.