Tax Tips

Business Meals: Q & A on the new tax rules

Here is some good news for business meals:  The Tax Cuts and Jobs Act (TCJA) removed the “directly related and associated with” requirements from business meals. The net effect of this change is to subject business meals once again to the pre-1963 “ordinary and necessary” business expense rules.  You are going to like these rules. […]

Business or Hobby

If you derive income from any activity where you are not an employee, from occasional dog sitting to playing guitar for tips at your local coffee shop, then the IRS requires you to classify the activity as either a hobby or a business on your tax returns. Importantly, this decision must be based on IRS […]

Tips to consider on Estimated Tax Payments

The IRS states that federal taxes must be paid on a “pay as you go” basis, not just at the end of the tax year. This means that if you receive significant income that is not subject to withholding, it is likely necessary for you to make estimated tax payments throughout the year. In addition […]

Actual Vehicle Expense Deduction vs Standard Mileage Deduction

If you use your car, van or truck for business purposes, you may be able to claim a vehicle expense deduction on your tax return. You may either use the standard mileage rate or report the actual expenses associated with business uses of the vehicle. Actual expenses include gas, repairs, insurance and depreciation. Each expense […]

IRS Private Debt Collectors

The IRS began a program a few years ago where they assign certain cases of overdue tax debts to private debt collectors. If this happens to you the IRS will give you (and your tax representative) written notice that your account is being transferred to the private collection agencies. Watch out for scam phone calls […]

20% Qualified Business Income Deduction

The 2017 Tax Cuts and Jobs Act (TCJA) created a 20% federal tax deduction for many self-employed taxpayers and small business owners (i.e., not wage earners but those with business income).  This is called the Qualified Business Income (QBI) deduction which applies to income derived from “pass-through entities”—businesses whose earnings are reported on individual owners’ […]

Tax Deduction for Student Loan Interest

If you have student loans, you may be able to deduct up to $2,500 per year in loan interest on your federal tax forms. Because this deduction is classified as an adjustment to your gross income, you do NOT have to itemize deductions in order to claim it. For any loan on which you paid […]

Home Energy Tax Credits

If you purchased alternative energy equipment for your home in 2018 or plan to purchase it for 2019, you may be eligible for a tax credit of up to 30% of the cost of materials and installation. The equipment that qualifies for the “residential renewable energy tax credit” includes: Solar panels (i.e., photovoltaics) Solar-powered water […]

April 1 to May 31 Quarterly Estimated Tax Payments are Due June 17

Quarterly estimated tax payments for the April 1 – May 31 quarter of the year are due to the IRS on June 15th.  However, because the due date this year falls on a Saturday the payment will be considered on time if you make it on the next day that’s not a Saturday, Sunday, or […]

Tax Filing Deadline for Overseas filers is June 17, 2019

Gentle reminder that  If you are a U.S Citizen living abroad or a Green Card Holder living abroad or in active military service and have not filed your taxes yet, the deadline is coming up on June 17th, 2019. The extension is for the date to file, not to pay. Any interest on the taxes […]