Side gigs

This year we picked up a number of new clients, a surprising amount have side gigs. Granted a number of them have a rental property of two. Today, I met with a couple where one had a pretty extensive e-commerce operation.  They have their website, but also are very...

2022 Capital Gains

With the significant drop in the stock market, I expect that capital gains from mutual funds will be sizable for 2022. When the market goes down a significant percentage of the population panics and go to cash. Mutual fund companies only hold so much cash in reserve...

Capital Gains

I don’t know why, but this is the first year that no one seems to understand how capital gains work. I have had to explain them to at least four people this year. Versus the usual one to none. I am not talking about stocks where you buy low and sell high, they seem to...

Biggest wealth increase in Congress, 2008-2018

Not all politicians come into office wealthy – but many leave that way. Here are the top 10 winners of the past decade. No one ever said Congress was not the place to grow your wealth       Name Growth Percentage Avg. Wealth 2008 Avg. Wealth 2018  Grace...

Poorest Members of Congress 2018

The salary of a typical member of Congress is $174,000. No one is qualifying for food stamps, but some lawmakers carry significant personal and/or business debt. Here are those “poorest” members. I know 2018 is the most current data. But then it is...

What does Congress earn?

I was wondering what Congress earned in only pure salaries, here is what I found… Speaker of the House                                                                                                                     $223,500 Majority leader and minority leader of...

Charcoal briquets

Most of the time when you’re grilling, you don’t think about the history behind it – just how delicious the food is going to taste when you’re done. I explored the history of Kingsford charcoal and was surprised to find a rich history, interestingly tied to Ford...

Stolen Property

Did you know that if you steal property, you are required to report its fair market value in your income in the year you steal it?  That is unless you return it to its rightful owner in the same year. No, you can’t give your neighbor a 1099 for the garden tools they...

Stock Act

The Stock Act is an Act of Congress designed to combat Congressional insider trading. It was signed into law by President Barack Obama on April 4, 2012. The law prohibits the use of non-public information for private profit, including insider trading by members of...

Illegal Activities

Did you know that income from all illegal activities, such as money from dealing with drugs, must be included as income on Schedule 1 so it can flow onto your 1040? You will also be taxed for self-employment taxes as well, so both side of FICA.

China has a short-sighted approach to R&D

Beyond forcing outside companies partnering and sharing design plans with the government. China will have to invest more in productivity enhancements like basic scientific research. Traditionally, Beijing has been loath to spend money on R&D that doesn’t promise...

Who controls the US’s future?

As the US continues to issue debt obligations (why live within our means), China continues to pony up to collect our debts and thus hold our future in their hands. We can look for China to continue to buy a hefty portion of America’s Treasuries. Beijing holds about...

The distant past, and Schedule A

Sometime ago the cost of an MBA could be deducted, as illustrated here. A man worked as an investment analyst and owned technology ventures. He left his job to get an MBA degree and deducted the cost on Schedule A as an unreimbursed employee business expense subject...

Child Tax Payments – Form 8812

IRS is disbursed its last monthly child credit payment for 2021 on Dec. 15. Taxpayers who file a federal return next year will use Schedule 8812 to reconcile their 2021 advance payments with the child credit they are entitled to. For most, the credit will exceed the...

Self-Employed Contributions Act (SECA)

There are some LLC and LP members who don’t pay SECA taxes that are now on the IRS’s radar. The IRS has an ongoing audit campaign on when limited partners and LLC members owe self-employment tax on their distributive share of the firm’s income. In 2017, the Tax Court...

Tax Criminals have few worries…

It seems that the IRS’s Criminal Investigation division is pursuing fewer payroll tax dodges… In 2021, the CI began 215 of these cases, compared with 298 the prior year. Apparently the probes of nonfilers, abusive tax schemes and cross-border crimes are also down. But...

Cannot rely on the IRS

When having an issue with your taxes and calling the IRS of instructions, is what we have been instructed to do, it is in the instructions.  They are supposed to be the experts. Relying on an IRS phone operator’s incorrect advice doesn’t avoid a tax bill. A man called...

Start-up expenses

Expenses incurred before business starts aren’t deductible right away. An engineer bought vacant land with the intent to eventually farm and develop it. Although he spent time and money working on the land, began constructing a barn, and even came up with a business...

Who pay what in Federal Taxes?

The tax burden on the highest income earners has actually gone down, according to IRS statistics. That is not to say that they are not paying their share. The top 1% of individual filers paid 38.77% of all U.S. income taxes for 2019, the most recent year IRS has...

OIC and refunds

OIC (Offer in Compromise) is an easing for people wanting to settle tax debts for less than what they owe. Starting with offers in compromise accepted by IRS after Oct. 31, 2021, the Service is no longer recouping a taxpayer’s refund for the calendar year in which an...

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