Business Taxation

If you run your business as an S Corporation and work from home, you might think claiming a home office deduction is as simple as filling out Form 8829 at tax time. However, because you are legally an employee of your own corporation, the standard home office deduction rules do not apply to you. To safely write off your home office expenses without triggering an IRS audit, your S Corporation needs to implement an accountable plan. Here is a breakdown of how an accountable pla

Navigating tax deductions can feel like a high-intensity workout. As small business owners, freelancers, and independent contractors look for ways to lower their taxable income, two categories frequently spark questions: gym memberships and marketing expenses. While one faces strict IRS scrutiny, the other serves as a flexible tax write-off. Here's what you need to know to maximize your deductions while staying compliant. 1. The Hard Truth About Gym Membership Many business o

It’s that time of year again. The calm before the tax storm. Within the next month, a flurry of W-2s and other income reporting forms will be sent to the government and taxpayers. Amongst those reporting forms are 1099s. 1099s are one of the most mismanaged forms by business owners. This is largely due to the lack of awareness regarding the requirements. Hopefully, by the end of this post, you will have a better understanding of when Forms 1099 are required. Requirements As a

Many items we buy for use in business can be expensed in the year purchased. This means the value of office supplies, some computers and furniture, and other items needed to operate a business can be placed on the profit and loss statement as an expense which reduces net income. However, not all items we buy are allowed to be expensed in the current year and must be capitalized. So, instead of being able to “write-off” the entire item as an expense, we must put the new asset

This post took entirely too long to get here. Alas, here it is. I have had plenty of people ask me whether switching from a single member LLC to an S Corporation is right for them. The answer will always be “it depends.” There are way too many variables to give a definitive answer in a quick five-minute conversation. The best way to know whether making the switch is right for you is to map out the difference in taxes and other costs between the two entities. For the purposes

State taxation isn't as simple as one might think. We attempt to break it down, here.

The rundown on the State and Local Income Tax deduction cap workaround.