Article Highlights: For-Profit BusinessesNot-for-Profit BusinessesNine Determining FactorsProfit Presumption Taxpayers are often confused by the differences in tax treatment between businesses that are entered into for profit and those that are not, commonly referred to as hobbies. Recent tax law changes have added to the confusion. The differences … [Read more...] about Hobby or Business? It Makes a Difference for Taxes – Now More than Ever
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Household Help: Employee or Contractor?
Article Highlights: Household Employee DefinitionEmployee Control FactorsSelf-employed or EmployeeWithholding RequirementsReporting Requirements Taxpayers often will hire an individual or firm to provide services at the taxpayer’s home. Because the IRS requires employers to withhold taxes for employees and issue them W-2s at the end of the year, the big question is … [Read more...] about Household Help: Employee or Contractor?
How Does Combining a Vacation with a Foreign Business Trip Affect the Tax Deduction for Travel Expenses of a Self-Employed Individual?
Article Highlights: Primarily Business Primarily VacationSpecial CircumstancesForeign Conventions, Seminars and MeetingsCruise ShipsSpousal Travel Expenses Note: effective for years 2018 through 2025, the Tax Cuts and Jobs Act of 2017 suspended the deduction of miscellaneous itemized expenses that must be reduced by 2% of the taxpayer’s adjusted … [Read more...] about How Does Combining a Vacation with a Foreign Business Trip Affect the Tax Deduction for Travel Expenses of a Self-Employed Individual?
States’ SALT Deduction Workarounds Shot Down
Article Highlights: Limit on Tax Allowed as an Itemized DeductionStates’ Attempted Workarounds Supreme Court RulingFinal RegulationsNotice 2019-12 The Treasury Department and the IRS have essentially shot down efforts by several states to help their residents circumvent the $10,000 cap on the itemized deduction for state and local taxes (SALT). When the Tax Cuts and … [Read more...] about States’ SALT Deduction Workarounds Shot Down
How to Organize Spending Priorities for Your Newer Growth Startup
According to a recent study conducted by U.S. Bank, over 80% of all newly formed businesses that ultimately fail do so due to cash flow problems. If you needed a reason to believe that getting your spending in order and dedicating the time to drafting a proper budget for your new startup is important, look no further than that one. If you take the time to properly … [Read more...] about How to Organize Spending Priorities for Your Newer Growth Startup