Many people erroneously believe that state unemployment compensation is not considered taxable income, resulting in quite an unpleasant surprise at tax time when they realize their mistake.  With a record number of Americans filing for unemployment benefits due to the Covid-19 pandemic and struggling to make ends meet, it’s important to plan ahead in order […]

At the end of 2019, the IRS issued updated guidance on a new rental real estate safe harbor rule which allows certain rental real estate to be considered an “enterprise” eligible for a Section 199a deduction. What is Section 199a deduction?  Section 199a gives owners of pass-through business entities an extra deduction of up to […]

When taking money out of a business, transactions must be carefully structured to avoid unwanted tax consequences or damage to the business entity. If the loan and repayments are not set up and processed properly, the IRS can reclassify the funding as nondeductible capital contributions and classify the repayments as taxable dividends, resulting in unexpected […]

If you can’t pay your taxes, don’t panic. Here’s what to do first: Make sure to file your tax return on time—failure to file is a much higher penalty than failure to pay.  Pay as much as possible when you file your tax return, as every dollar you pay at tax time reduces the late […]