When it comes to tax audits, there are several red flags that could increase your chances of drawing unwanted attention from the IRS. Here are some key issues to be aware of: Failing to Report All Taxable Income: The IRS receives copies of all the 1099s and W-2s you receive and cross-checks them with tax returns. Make sure to report all required income, and provide accurate numbers. If there’s a mismatch between the forms and the income you report, it can trigger a red flag.

Former President Donald Trump’s first term saw the implementation of the Tax Cuts and Jobs Act (TCJA) in 2017, which introduced sweeping reforms that greatly benefited real estate investors. Trump’s administration could propose additional tax policies or extend existing provisions that impact the real estate sector. Below, we explore potential tax changes and their implications for real estate investors. 1. Extension of the Tax Cuts and Jobs Act (TCJA) Provisions The TCJA, en

BOI remains on hold, again.

To extend or not to extend, that is the question many business owners and individuals face each year. There are important reasons for considering each option. We've listed common situations to think about that will help you to make the best decision for you and your business. Top Reasons for Filing on Time: You Owe Taxes: If you expect to owe taxes to the IRS, extending your return will not give you extra time to pay. Interest will accrue and fees may be charged. Currently, I

In 2021, Congress passed the Corporate Transparency Act on a bipartisan basis. This law is part of the U.S. government’s efforts to make it harder for bad actors to hide or benefit from their ill-gotten gains through shell companies or other opaque ownership structures. As of January 1, 2024 business owners must comply with the Corporate Transparency Act (CTA). This means that an initial report must be filed, known as the Beneficial Ownership Information (BOI) report, with

The Minnesota Department of Revenue will send direct tax rebate payments for tax year 2021 to eligible Minnesotans after a recent tax law update. The legislation, signed May 24, 2023, provides payments of: $520 for married couples filing a joint return with adjusted gross income of $150,000 or less $260 for all other individuals with adjusted gross income of $75,000 or less Another $260 for each dependent claimed on your return, up to three dependents You do not have to apply

By Katie Lobosco, CNN Updated 5:26 PM EDT, Thu April 6, 2023 Danny Werfel testifies before the Senate Finance Committee during his IRS commissioner nomination hearing on February 15, 2023, in Washington, DC. Kevin Dietsch/Getty Images WashingtonCNN — The forthcoming overhaul of the Internal Revenue Service is intended to increase audits of the wealthy and big corporations while leaving audit rates on average households the same, according to a plan released by the agency Thu

We often get asked how or if travel arrangements can be made to make trips deductible as a business expense. Please read the following scenarios to illustrate how to get your travel, even if there is a personal component to it, subsidized by the IRS.

Many people have health savings accounts, or at least have heard of them. While you (or your employer) can only contribute money to them...

With tax season upon us, an almost universal question that many CPA’s and tax professionals get asked, “should I extend my tax returns”...

As you likely know, the Section 1031 tax-deferred like-kind exchange is one of the greatest wealth-building mechanisms for real estate...

When we see negative impacts on the economy we often see an increase in individual's debts piling up beyond a borrower’s ability to...

Want an after the fact tax deduction you can take for 2022 in 2023? Contribute to your IRA or HSA! Here are some things to keep in mind: IRAs Deadline: The deadline to contribute to a traditional or Roth IRA for 2022 is the original due date of your personal tax return in 2023. The actual due date is Tuesday April 18th, 2023. While the due date is typically April 15th, since April 15th 2023 falls on a Saturday, and Monday the 17th is Emancipation Day (a holiday), so the deadl

As a small business owner, you know how important it is to save money whenever possible. One great way to do this is by taking advantage...

1031 Like-Kind Exchanges for Real Estate Investors If you're a real estate investor, you've probably heard of 1031 like-kind exchanges. These transactions allow investors to defer capital gains taxes when selling one property and reinvesting in another. While the concept may seem complicated, this blog post will break down the basics of 1031 exchanges so that you can make informed decisions about your investments. What is a 1031 Exchange? A 1031 exchange (also known as a like

12/16/2022 You may have noticed that the IRS is in a bad way. It has a backlog of millions of unprocessed paper tax returns, and taxpayers can’t get through to the agency on the phone. Congress noticed and took action by passing a massive funding of the IRS in the recently enacted Inflation Reduction Act. The IRS will get an additional $80 billion over the next decade. This includes $35 billion for taxpayer services, operations support, and business systems. Among other thing

Yellen tells IRS to develop modernization plan in 6 months By The Associated Press Published: Aug. 17, 2022 at 10:53 AM CDT|Updated: 5 hours ago WASHINGTON (AP) — Now that President Joe Biden signed Democrats’ expansive climate, tax and health care bill into law, Treasury Secretary Janet Yellen has directed the IRS to develop a plan within six months outlining how the tax agency will overhaul its technology, customer service and hiring processes. In part, the improvements ar

The IRS is set to get billions for audit enforcement. Here’s what it means for taxpayers By Katie Lobosco, CNN Updated 2:53 PM EDT, Thu August 11, 2022 Zach Gibson/Getty Images WashingtonCNN — The Internal Revenue Service is finally about to get the additional funding its officials have long been waiting for. The Democrats’ Inflation Reduction Act calls for delivering nearly $80 billion to the IRS over 10 years. After months of negotiations over the sweeping spending package

Let's say you own a building. Now, let's say that you rent this building to your business. With no tax planning, you have a self-rental, and that ■ makes rental income from this building nonpassive, meaning that it cannot offset any passive losses (very bad); and ■ makes rental losses from this building passive losses, meaning that you likely cannot deduct the losses this year (also very bad). So, there you have it: with no tax planning, you get the worst of both worlds. So

Just a short article to remind readers that while it seems like we have had 100% bonus depreciation for a while, this year (2022) is the last year we have the ability to take 100% bonus depreciation. Once the clock strikes midnight on 12/31/2022 bonus depreciation will start to phase out. Before getting too much into the nitty gritty of what this means, think about any significant purchases you may need to make for your business. A new vehicle? New equipment or machinery for