6 Smart Moves to Cut Your Tax Bill Before December 31st
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4 Things to Know About Employing Your Spouse
If you own your own business and operate as a proprietorship or partnership (wherein your spouse is not a partner), one of the smartest tax moves you can make is hiring your spouse to work as your employee.
The Importance of Keeping a Mileage Log
The IRS notes that a taxpayer’s failure to keep a mileage log on vehicles indicates that the activity under examination is not being conducted in a businesslike manner.
What's the best way to report your vacation home rental income?
Do you have a beach or mountain home that you rent out? What’s the best way to report your income?
Don’t Rob Yourself of the Home Internet Deduction.
If you do some work at home, you’re probably using your home internet connection. Are your monthly internet expenses deductible? Maybe.
The deduction rules depend on your choice of business entity (proprietorship, corporation, or partnership).
Is Your Sideline Activity a Business or a Hobby?
Do you have a sideline activity that you think of as a business?
From this sideline activity, are you claiming tax losses on your Form 1040? Will the IRS consider your sideline a business and allow your loss deductions?
The IRS likes to claim that money-losing sideline activities are hobbies rather than businesses. The federal income tax rules for hobbies have been anti-taxpayer for years, and now an unfavorable change enacted in the Tax Cuts and Jobs Act (TCJA) made things even worse for 2018-2025.
If you have such an activity, we should have your attention.
Here’s the deal: if you can show a profit motive for your now-money-losing sideline activity, you can classify that activity as a business for tax purposes and deduct the losses.
In this article, we give you what you need to know about the federal income tax rules for hobbies and how to tilt the playing field in your favor.
Last-Minute Business Deductions
Well, here we are coming into the holiday season and the end of 2021. If you’re a business owner, you want to make the most of your business deductions and minimize your tax liability. The purpose of this article is to get the IRS to owe YOU money.
Of course, the IRS is not likely to cut you a check for this money (although in the right circumstances, that will happen), but you’ll realize the cash when you pay less in taxes.
Here are six powerful business tax deduction strategies that you can easily understand and implement before the end of 2021.