Latest Posts on USTaxAid's Blogs

  • S Corporations & Medical Insurance for Owners

    January 23, 2015 | Posted in Diane's Blog, USTaxAid's Blogs

    If your S Corporation pays for medical insurance for employees, it will be a 100% deduction for the company and not taxable for the employee. If you own >2% of the shares of the S Corporation, you don’t get the same tax break. In fact, the amount paid for the medical insurance by the corporation should be added back to the owner’s tax return. The owner then can take a deduction on his Form 1040... Read More »

  • Going From Zero to $100,000,000 (Almost)

    January 21, 2015 | Posted in Diane's Blog, USTaxAid's Blogs

    This past year two of my clients almost hit $100 million in sales. ALMOST. What’s most remarkable is that they started at zero. Zip. Nada. Zilch. They started a business solely with what they knew and a lot of hard work. That leads to the first of five lessons I learned from them. Lesson 1: If you want passive income, you need to start with capital (yours or someone else’s). There really... Read More »

  • Five Tax Changes for 2015 You Might Not Have Heard About

    January 19, 2015 | Posted in Diane's Blog, USTaxAid's Blogs

    I’ve been talking a lot about two big tax changes you’ll need to know about for your 2014 tax return: ACA forms (health care) and Form 3115s (if you have real estate investments or a business). I’ll talk more about that again in Friday’s blog post. Today, I want to go over five tax changes for 2015 that you might not have heard much about.

    1. Pell Grants, Living Expenses & Education Credits Pell... Read More »

  • The Repair vs Capitalization Argument and What Changed This Year

    January 9, 2015 | Posted in Diane's Blog, USTaxAid's Blogs

    For decades, a common tax dilemma for real estate investors has been how to handle repairs to property. The investor would love to write the expenses all off and the IRS would love for them to capitalize the costs and depreciate them over time. The IRS finally once and for all came up with the rules, but then they added a whole lot more including how and when to write off materials and supplies, how to... Read More »

  • What Happens if Your Business/Real Estate Business Doesn’t File a Form 3115 This Year?

    January 7, 2015 | Posted in Diane's Blog, USTaxAid's Blogs | 2 Comments

    Last Monday, I talked about the requirement for every business and real estate investment entity to file at least one Form 3115 this year. I talked about the fact that the IRS would be looking at every business that hadn’t filed for their audit pool. And I got questions whether preparing the Form 3115 was really that necessary. It’s a complicated form and you’ll have to pay your CPA more than usual to prepare these... Read More »

  • The Tax Form Every Business Owner & Real Estate Investor Needs to File

    January 5, 2015 | Posted in Diane's Blog, USTaxAid's Blogs | 5 Comments

    Before I even start with what the form is, or why you need to know about this, let me tell you what the IRS has said about Form 3115 “Application for Change in Accounting Method.” A US Treasury Official has stated that they expect that every single business owner and real estate investor will need to file at least one with their 2014 tax return. After all 2014 tax returns are filed, they will... Read More »

  • Last Minute Year End Planning

    December 29, 2014 | Posted in Diane's Blog, USTaxAid's Blogs

    A little under a week ago, Congress, the Senate and the President signed the Tax Extender Bill. It’s retroactive to January 1, 2014 and expires December 31, 2014. Yes, you read that right. This bill, passed at the end of December, 2014, and is retro active for an entire year and expires in a few days. The Tax Extender Bill covered 55 different tax laws that had expired at the end of 2013. Congress attempted to... Read More »

  • The Real Estate Professional vs IRS

    December 19, 2014 | Posted in Diane's Blog, USTaxAid's Blogs | 2 Comments

    The hottest tax topic is still the real estate professional tax deduction versus the IRS. Let’s start off with what that is and why it’s important. You may have heard that the three benefits of real estate investing over any other type of investing are:

    1. Cash flow,
    2. Possibility of appreciation, and
    3. Tax breaks.
    Unfortunately, if you buy too high or in a market with high prices and relatively lower rents, you won’t have positive cash flow. This was especially true... Read More »

  • How to Legally Move Your Business Offshore For Tax Purposes

    December 17, 2014 | Posted in Diane's Blog, USTaxAid's Blogs

    Let me start by saying it is possible to move all or part of your otherwise US business offshore. You have to follow the rules and you may find that you still need to pay some U.S. tax. You’ll pay more for business set-up and maintenance and your tax reporting will be more expensive. Let’s go over what I call the Easy C’s. First up, customers. Where are your customers from where do you fulfill... Read More »

  • Filing Tax Returns for New Business

    December 15, 2014 | Posted in Diane's Blog, USTaxAid's Blogs

    If you’ve started a new business this year, you certainly had a lot on your plate. There’s one more thing to consider – your business tax return. I spend a lot of time talking about business deductions and how to take them, but this is a more basic issue. Which tax return do you use and when is it due? If you haven’t selected a business structure, you’ve got a Sole Proprietorship. That means you file Schedule... Read More »

  • What Foreign Assets Do You Need to Report?

    December 12, 2014 | Posted in Diane's Blog, USTaxAid's Blogs

    Got a tax question? Send it in to me by clicking HERE. I received a question about US citizens holding foreign assets and what kind of reporting is required. This is an important question and, unfortunately, there are still some people who get it wrong. Let me tell you how it can go wrong. I heard this again just a couple of days ago. There are unscrupulous promoters who tell people that they can simply... Read More »

  • The Balance Between Low Taxes and Getting a Loan

    December 10, 2014 | Posted in Diane's Blog, USTaxAid's Blogs

    One of the benefits of having a business is that you’ll pay less tax. In fact if you make $50,000 in business versus $50,000 in a job, you’ll pay, on average, $5,000 less in tax. Businesses pay less tax. That’s because of business deductions. If you have an expense that can be shown to be ordinary and necessary to the production of income, it will be a deduction. So, you may have things in your... Read More »

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