10 Strategies To Reduce Your Taxes - Tip #2 Maximize Deductions
We are nearing the end of the year with Thanksgiving at a close. Luckily, we have our second strategy out of the ten to reduce your taxes! The second tip we are going to be covering is about maximizing your deductions and investing in revenue-generating assets. We discuss what depreciation is, and the three types of depreciation. We give business owners strategies to make their assets have a 100% deduction before the end of the year. Need help? Please do not hesitate to call
Build Back Better Act Has Passed, What Does This Mean To You?
The House of Representatives on Friday morning passed H.R. 5376, the Build Back Better Act, by a vote of 220–213. The bill encompasses a wide range of budget and spending provisions and has been the focus of protracted negotiations for the past several weeks. How is this Bill going to affect you? One good news you would perhaps want to know is the change in the SALT deduction cap. The bill would increase the Sec. 164(b) limitation on the deduction for state and local taxes fr
This New Tax Rule Will Affect You If You Use Online Payment Apps!
Dear business owners, in this upcoming year, your merchant processor will start requesting you to provide your tax information like your EIN (Employer Identification Number), ITIN (Individual Tax ID Number), or SSN (Social Security Number). Surprised? This is because the IRS is now asking third-party electronic payment companies (including PayPal, Venmo, and Square) to disclose to the IRS a user's business transactions if, in aggregate, they total $600 or more for the year. T
Employee Retention Credit Is Now Gone!
We have some shocking news today! ERC has ended! The infrastructure legislation ends the employee retention credit (ERC) early, making wages paid after Sept. 30, 2021, ineligible for the credit (except for wages paid by an eligible recovery startup business). This latest legislation H.R. 3684 passed the House of Representatives and is headed to the President’s desk to be signed into law. President Joe Biden is expected to sign the Infrastructure Investment and Jobs Act which
How Are Taxes Going To Rise Without The Help Of Lawmakers?
While Democrats make a huge push to raise taxes on the wealthy, many of the current tax provisions are going to expire anyways by 2026. For example, TCJA 2017 was previously passed to cut the top income-tax rate, a 20% tax break was offered to business owners, and estate tax threshold was increased from 5.5M to 11.7M. All these provisions would not survive after 2025. Regardless, the current proposals may still change in ongoing negotiations and lawmakers may decide to extend
Is America Becoming A Communist Country?
President Joe Biden recently proposed a mandate that the IRS should have access to all of our transaction information (withdrawals or deposits) that exceeds $600 from your personal bank accounts. With this proposal, the Treasury Department believes that it will raise 460 billion untapped tax revenues from its people. What does this mean to you and other business owners out there? Watch our latest video on how this could affect you and your business! If you have any questions
Reminder Oct 15 Is When FBAR Extension Should Be Filed!
Today, the IRS reminded all U.S. citizens, resident aliens, and any domestic legal entity to complete the annual FBAR (Report of Foreign Bank and Financial Accounts) filing by October 15, 2021. So if you have financial interest or authority over one or more bank accounts, brokerage, mutual funds, or other financial accounts OUTSIDE the US and the combined total exceeds $10,000 at any given time of the year, you would have to file FBAR. Any filers that missed the April 15 dead
Why CEOs Are Worried About The Latest Tax Law Changes?
Based on the latest tax law changes, CEOs are getting worried about a potential increase in corporate tax rate from 21% to 26.5%. To make it worse, there are other challenges including the challenge to hire qualified workers and slow recovery from the pandemic. Democrats have proposed a higher corporate tax rate with the intent to use the tax dollars to fund a $3.5 trillion reconciliation bill to tackle US poverty. In addition, Democrats have also proposed adding back the top
Year-End Tax Strategies To Save On Taxes For 2021!
The end of the year is approaching fast, regardless of what new tax legislation that Congress passes, there are a few year-end tax strategies you may want to consider to increase your tax savings. For example, for investors, you may want to consider tax-loss harvesting which allows you to offset capital gains with losses, especially if you have more losing assets than winning assets. Next, charitable donations. With a $12,550 standard deduction for single filers ($25,100 for
1040 Extension Deadline Nears, Biden Administration Raises Taxes on the Wealthy
Top news today, 1040 extended due date. If you have applied for an extension for your 1040, October 15 is the last day to file your tax return. If you have not started, we urge you to start soon. If you have suffered financial losses from the recent Hurricane Ida, you can include those losses as deductions when you file your 2020 tax return to obtain a refund. For families and individuals who are making more than four hundred thousand dollars a year, it is very likely that th
