by Leif Jensen | Mar 4, 2026 | Running a Business |
Hobby vs Business; the 9 factor test Regs. Sec. 1.183-2(b) lists nine factors for determining whether a taxpayer engages in an activity for profit: 1. How the taxpayer carries on the activity. A tax preparer would first want to look for how the taxpayer handles the...
by Leif Jensen | Mar 2, 2026 | Running a Business |
For a business expense to be deductible, it generally must be ordinary and necessary or be an investment expense. Investment-related deductions under IRC §212 have largely been eliminated by the TCJA. That puts the emphasis on deductions to be tied to a trade or...
by Leif Jensen | Dec 1, 2025 | Running a Business |
I found this little tidbit on the internet, it seems to cover ground always covered with only some insite. Whether a business fails in it’s first year or tenth year, it is typically due to more than one reason. Understanding the specific causes behind small business...
by Leif Jensen | Nov 19, 2025 | Running a Business |
At one of my networking events, I was talking to someone who described their business as owning a job and not a business or a career. They were discussing what will be the survival rate of the business, meaning what is the survival rate of industry rivals. Finally,...
by Leif Jensen | Nov 17, 2025 | Running a Business |
I was reading an article that highlighted the following as issues concerning their financial stability. Lack of Funds Nothing can hold a business back like money problems. This is even more true for small businesses. While most larger companies have enough cash flow...
by Leif Jensen | Sep 24, 2025 | Running a Business |
For S corporation (S corp) owners who are actively involved in their business operations, paying themselves a “reasonable salary” for the work performed is a requirement. The Internal Revenue Service (IRS) defines this reasonable compensation as an amount...
