by Leif Jensen | Sep 30, 2019 | Running a Business, Taxes |
While some states taxing authorities are urging the IRS to pick up the pace on giving them W-2 data. Others like Illinois are requiring that the data be entered on the My Tax Illinois website. Employers are required to file W-2s with the Social Security...
by Leif Jensen | Sep 25, 2019 | Advertising, Running a Business |
We recently picked up some work from a new client. They needed some assistance with their Chicago Use Taxes. When questioned why they sought us out, we were informed that their CPA was not interested in assisting them with the issue. They had been unwilling to...
by Leif Jensen | Sep 24, 2019 | Taxes |
Earlier this year I was invited to an event that I have never been a part of before, an IDES audit. I know that the Illinois Department of Employment Security does audit, but I have never had a client who was audited. Now I have had one. The client was an unlikely...
by Leif Jensen | Sep 23, 2019 | Running a Business, Taxes |
This tax season we picked up a new tax client. This person is apparently an independent contractor. Based upon the facts of the case, I disagree. I believe this person to be an employee and that his employer has him paid as an independent contract to save on the...
by Leif Jensen | Sep 18, 2019 | Investing |
Do you have or believe in life insurance? Years ago, I was not a fan and didn’t see the philosophy. Then when I worked as a financial planner and compliance for a group of financial advisors, I was taught and saw the benefits at work. Life Insurance is one of the...
by Leif Jensen | Sep 17, 2019 | Estate Planning |
I have a business client who owns a business and has three children. The largest asset the owner has is the business. One child works within the business and the plans are for them to eventually take over the running of it, while the siblings dabble in the business...
by Leif Jensen | Sep 16, 2019 | General |
I learned something new about insurance recently. I am Trustee on a Trust and the Trust owns a piece of property with a home on it. The tenant bypassed me and filed claims with the insurance company in 2017 and 2018. Very small claims, the 2018 had a payout of...
by Leif Jensen | Sep 11, 2019 | Tax Court |
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...
by Leif Jensen | Sep 10, 2019 | Running a Business |
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...
by Leif Jensen | Sep 9, 2019 | Tax Court |
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...
by Leif Jensen | Sep 4, 2019 | Tax Court |
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...
by Leif Jensen | Sep 3, 2019 | Tax Court |
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...
by Leif Jensen | Sep 2, 2019 | Running a Business |
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...
by Leif Jensen | Aug 28, 2019 | Running a Business |
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...
by Leif Jensen | Aug 27, 2019 | General |
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...
by Leif Jensen | Aug 26, 2019 | Taxes |
In May the IRS released Rev. Proc. 2019-26; this spells out the depreciation level for luxury passenger autos ($50,000 or more) and the tax liability for leased vehicles. The annual depreciation limitations for passenger automobiles (including trucks and vans) first...
by Leif Jensen | Aug 21, 2019 | 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...
by Leif Jensen | Aug 20, 2019 | Taxes |
Couples who are self-employed must each figure their SECA tax separately and are required to complete a separate Schedule SE. Their total combined self-employment tax then goes on Schedule 4, line 57, of the 1040. Losses incurred in one spouse’s business cannot be...
by Leif Jensen | Aug 19, 2019 | Tax Court |
A company’s CFO has liable for its past-due employment taxes, according to the tax court The CFO had control over the company’s bank account and oversaw all aspects of the firm’s operations and finances, including payroll, tax return preparation and personnel matters....
by Leif Jensen | Aug 14, 2019 | Tax Court |
Surprise, collectors can’t get the market full value of coins seized by IRS, according to a federal court. During a home search, an IRS agent confiscated 364,000 presidential $1 coins that were rolled and boxed. After seizing the coins, the Service unpacked them and...
