Self-Employment Taxes for Partnerships and LLCs?

Here’s a question: Does a member of a limited liability company (LLC) or a partner in a partnership have to pay self-employment taxes (Social Security and Medicare tax) on the member’s or partner’s share of the entity’s income? Incredibly, the answer is not always clear. If you are a general partner in a general partnership, […]

5 Rules for Turning Your Vacation into Tax-Deductible Business Travel

Here’s an idea: how about transforming your next vacation into business travel? With careful planning, your transportation to any destination could be fully deductible. This includes airfare—even first-class—luxury hotel stays, and cruise expenses. If you can tie your travel to business purposes, you can enjoy substantial tax savings, depending on your tax bracket. Two Main […]

Converting Your Partnership into an S Corporation Tax-Free

Let’s say you’re considering converting your partnership into an S corporation. The reason might be to reduce exposure for you and the other owners to Social Security and Medicare taxes, which come in the form of the self-employment tax for partners. Specifically, each partner’s share of net partnership income is usually fully exposed to the […]

Deducting Start-Up Costs For Your Rental Property

Are you interested in becoming a commercial or residential landlord? If so, you’ll likely have to shell out plenty of money before ever collecting a dime in rent. The tax code treats some of those monies as start-up expenses. Start-up expenses are some of the costs you incur before you offer a property for rent. […]

New 2024 Businesses and Rentals Initiate FinCEN Filings

After years of delays, the first stage of the Corporate Transparency Act (CTA) goes into effect on January 1, 2024. It imposes a new federal filing requirement for most corporations and limited liability companies (LLCs) formed in 2024 and later. The CTA’s purpose is to prevent the use of anonymous shell companies for money laundering, […]

Why Some Business Owners Prefer Individual HSAs

Why Some Business Owners Prefer Individual HSAs

When enacted, the Affordable Care Act (ACA) eliminated most small business health plans that reimbursed individually purchased health insurance. Consequently, many small business owners chose health savings accounts (HSAs) or opted to provide no health coverage at all. As of 2022, over 35 million HSAs were active, with assets amounting to $104 billion. The Devenir […]

Tax Obligations for U.S. Citizens Working or Living Abroad

Businesswoman considering tax obligations for working or living abroad.

Many employees take opportunities to live and work in various parts of the world but may have concerns about their U.S. tax obligations for working or living abroad. We want to alert you to the tax implications you might encounter as a U.S. citizen living or working abroad. We’re going to use Switzerland in our […]

Repair Business or Rental Buildings for Tax Deduction Purposes

Repair or improvements give the best tax benefits?

The distinction between repair expenses and improvement costs can impact your tax benefits. it is important to know the difference between the tax benefits you can receive. You can make repairs to your business building, or make improvements (classified as capital expenditure) and then deduct depreciation. Both have different cash savings. The tax law categorizes […]

Does Your Business Have Fewer Than 50 Employees? Consider the QSEHRA Health Plan

Small business considering a QSEHRA Health Plan

As a small employer (fewer than 50 employees), you should consider the Qualified Small Employer Health Reimbursement Arrangement (QSEHRA health plan) as a good way to help your employees with their medical expenses. If the QSEHRA is indeed going to be your plan of choice, then you have three good reasons to get that QSEHRA […]

Proving Expenses for Business Travel

Here’s some crucial information on how to document expenses during business travel. Corporation or proprietorship? If you operate as a corporation, the corporation should reimburse you for the travel expenses or pay for them directly. Remember, you can’t deduct employee business expenses on Form 1040 anymore due to changes brought by the Tax Cuts and […]

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