Repairs Or Improvements? Maximize Your Tax Benefits With Repairs.

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The distinction between repair expenses and improvement costs can impact your tax benefits. The tax law categorizes repair and improvement costs differently. Repair expenses are generally more beneficial for tax purposes, providing greater after-tax cash value than the depreciation deductions you would get from improvements or additions. One key reason for this is recapture taxes. […]

Does The Pass-Through Entity Tax Benefit You?

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We have some critical updates on the pass-through entity tax (PTET), which has recently become the rule in most states rather than the exception. The PTET enables owners of pass-through businesses, such as S corporations and multi-member LLCs, to navigate around the $10,000 annual limit on state and local taxes (SALT). How PTET Works The […]

Important Rules For Business Meal Deductions

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I hope this message finds you well. I am writing to provide valuable insights regarding the tax implications of business meals. As you may already be aware, there is a contradiction in the tax laws regarding personal living expenses, specifically personal meals and business meal tax deductions. This is best illustrated by what tax professionals […]

Tax Tips For US Citizens Working Abroad

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Many of our clients have taken opportunities to live and work in various parts of the world, such as Switzerland, and have concerns about their U.S. tax obligations. We want to alert you to the tax implications you might encounter as a U.S. citizen living or working abroad. We’re going to use Switzerland in our […]

Business Travel Expense Deduction Guidelines

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Here’s some crucial information on how to document expenses during business travel. Corporation or proprietorship? If you operate as a corporation, the corporation should reimburse you for the travel expenses or pay for them directly. Remember, you can’t deduct employee business expenses on Form 1040 anymore due to changes brought by the Tax Cuts and […]

Qualified Small Employer Health Reimbursement Arrangement (QSEHRA)Plans Are A Great Alternative To Group Health Insurance

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As a small employer (fewer than 50 employees), you should consider the Qualified Small Employer Health Reimbursement Arrangement (QSEHRA) as a good way to help your employees with their medical expenses. If the QSEHRA is indeed going to be your plan of choice, then you have three good reasons to get that QSEHRA plan in […]

Section 105 Medical Reimbursement Plans

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For the past few weeks, I have received questions about the Section 105 medical reimbursement plan from my self-employed and solo C corporation owners. Below are the main points from my answers. When you have multiple businesses, all employees across these businesses are considered your employees under the Section 105-HRA plan. If you have more […]

How To Close Your C Corporation Properly

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I am writing with some thoughts about your approaching corporate liquidation. There are several tax implications that you need to be aware of. Complete liquidation of a C corporation is when it ceases to be a going concern, winds up its affairs, pays its debts, and distributes its remaining assets to the shareholder(s). In tax […]

Health Insurance Tax Deduction For S Corporation Owners; Don’t Make This Mistake If You Want This Valuable Tax Deduction

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When your S corporation covers or reimburses your more-than-2-percent-shareholder-employee health insurance expenses, it classifies the payments as box 1 W-2 wages but not box 3 or box 5 wages. When calculating the amount eligible for the Form 1040 self-employed health insurance deduction, you must use your Medicare wages (listed in box 5 of Form W-2) […]

IRA to HSA Rollover; Take Advantage To Save Major Taxes

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Health Savings Accounts (HSAs) are designed for use alongside high-deductible health plans, assisting you in covering your medical expenses. They can also function as an incredible retirement account due to their triple tax benefit: You can deduct contributions from your taxes. Your account balance grows without being taxed. Withdrawals for medical expenses are tax-free. And […]

Business Gym Tax Deduction Guidance

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I know you have been thinking about employee fitness and possibly a gym or other athletic facility. To be tax deductible, your gym or other athletic facilities must be primarily for the benefit of your employees—other than employees who are officers, shareholders, or other owners who own a 10 percent or greater interest in the […]