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Tax Home

Your tax home is not always be where you think it is…  It may not be where you live. As a self-employed consultant lived in Ga.found out. He spent his time at his client’s offices in N.J. for four days each week. He deducted his travel to and from N.J. as...

Getting started

You have decided upon your entity type and have done your initial analysis, you are now ready to get started with your business.  You have your product or service and can now jump in and get started. Whether you are full time or part time you will need to know where...

IRA for Education

Tapping an IRA before age 59½ to pay higher education costs is penalty-free. To qualify, the payout must cover costs paid in the year of the withdrawal. Payouts can be used to pay expenses for the IRA owner, spouse, child or grandchild. Note that even if the...

Home Mortgage Exclusion

Not all forgiven home mortgage debt qualifies for the $2-million exclusion, which is a lesson learned the hard way. She got a home equity line of credit from her bank that was secured by her primary residence. When she later relinquished the property to the bank in a...

Defunct Related Party Transactions

A multipreneur was paid $200,000 for consulting services provided to one of the entities. He reported the income on Schedule C of his 1040 and took a deduction for $200,000 of commissions reportedly owed to another entity that he owned but that had gone out of...

Initial Analysis

So you have decided to start that business and are anxious to get moving.  Now is the time for your initial analysis of your proposed business.  We will assume that you have decided on an entity type and have done all the steps required to get you in good standing...

Corporate entities

There are four basic corporate entities options for small business owners, Sole Proprietor, Partnership, S-Corporation or an LLC.  Yes, there are other flavors, but they are variations of these four basic entity types such as a C-Corporation or a LLP, etc. A Sole...

Running a small business.

Sole proprietorships are now officially on the IRS’s radar, because auditors know from experience that some self-employed individuals claim excessive write-offs and don’t report all their income. Tempting targets include proprietors reporting at least $100,000 of...

Not For Profit Taxes

Two recent tax law changes affect nonprofits. The first is that nonfilers get relief on exemption revocations. Exempt groups that fail to file their annual Form 990 returns for two consecutive years will get a letter from IRS notifying them that the agency hasn’t...

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