tax
Our tips and tricks to get you on track
Real estate activities fall into several different tax categories. It could be classified as a business or an investment, and that difference can change your tax bill. Rental Properties Rental real estate is sometimes treated like a business and sometimes treated like an investment activity, depending on what aspect of the tax law you want to dive…
When a taxpayer owns a house where a relative resides, they navigate tax considerations related to rent, expense reimbursement, and impact on deductions. Let’s explore three common approaches based on the document provided and relevant IRS guidelines. 1. Charging Rent at Fair Market Value Charging fair market rent ensures the property is treated as a rental for tax purposes. This…
You’ve worked hard to bring in a good new employee. You interviewed, agonized, made the offer—and now they’re in the seat. But the reality is, they still have a lot to learn. Now your job is to give that new employee the best possible chance to succeed. Because what happens next will determine whether they become an asset—or a drain…
Many business owners believe that leaving money in the business checking account can delay or even eliminate taxes on that income. At first glance, that feels logical. If you do not take the money out, it seems like it should not count as income. Unfortunately, that is not how the tax rules work. This misunderstanding is extremely common and often…
When does side income become a business? Many people are surprised to learn they already have a business for tax purposes — even if they never formed an LLC or thought of themselves as “business owners.” For tax purposes, the IRS uses a very broad definition of a business. Understanding whether what you’re doing counts as a business can dramatically affect your taxes. It determines whether you can deduct…
Many business owners would just look at inflation in terms of the standard published rate, such as the CPI (Consumer Price Index), and feel on top of things if they do an equal or greater price increase this year. But this article is going to show you how inflation specifically impacts your business and help you understand what actions…