If you asked me what my clients ask the most, you may be surprised to hear at the top of the list is “Why do I pay more taxes on more S corporation income than what I actually took in cash?” The answers lies in the way S corporations and their shareholders are taxed. [...]
When you travel on business for your company, you may earn frequent flyer miles or other promotional benefits, such as through rental cars or hotels. These promotional benefits can be exchanged for free or discounted travel, upgraded seating, travel services, etc. Even though the business trips are paid for by your employer, you may [...]
The tax basis for property an individual inherits is an important area and is too often overlooked when families start to put their affairs in order. Under the fair market value basis rules (also known as the “step-up and step-down” rules), the heir receives a basis in inherited property equal to its date of [...]
Taxpayers often run into tax difficulties figuring how to report their gambling winnings and losses. This is because gambling winnings are fully taxable, while gambling losses aren't simply offset against the winnings. Briefly, your winnings must be reported on the “other income” line on the front page of your tax return. To measure your [...]
One of the negative aspects of buying a new car is the annoyance involved with getting rid of your old car. Many individuals find the trade-in allowance offered by dealers (if any) to be well below the car's true value. But the alternative of selling the car on your own involves the expense of [...]
For 2016, the IRS, the states and the tax industry joined together to enact new safeguards and take additional actions to combat tax-related identity theft. Many of these safeguards will be invisible to you, but invaluable to the fight against these criminal syndicates. The IRS is aware identity theft is a frustrating process for [...]
We want to remind you of the requirement to substantiate all of your charitable contributions. If the contribution is $250 or more, you'll need a written receipt from the charity. If you donate property valued at more than $500, additional requirements apply. Here are the details. General rules. For a contribution of cash, check, [...]
Expenses that you incur in order to enable your child to compensate for or overcome disabilities or to prepare your child for future normal education or normal living are deductible medical expenses. Thus, any expenses for therapy that helps your child's adaptation are deductible medical expenses. In addition, the expenses of your child's schooling [...]
The question of whether a worker is an independent contractor or employee for federal income and employment tax purposes is a complex one. It is intensely factual, and the stakes can be very high. If a worker is an employee, the company must withhold federal income and payroll taxes, pay the employer's share of [...]
To determine how much of your benefits are taxed, you must first determine your other income, including certain items otherwise excluded for tax purposes (for example, tax-exempt interest). Add to that the income of your spouse, if you file jointly. To this add half of the Social Security benefits you and your spouse received [...]