by Leif Jensen | Dec 1, 2021 | Running a Business, Taxes |
Are you a gig worker? Do you have a side hustle to make yourself some extra cash? Do you know that you are supposed to report that cash to the IRS as reportable income and possibly pay self-employment taxes on those monies? The IRS wants to raise public awareness of...
by Leif Jensen | Nov 9, 2021 | Running a Business, Taxes |
S corporation owners that pay themselves low salaries should and will be a bigger IRS target, according to Treasury inspectors. Many S corporation shareholders take low salaries, so the bulk of their profits are passed through to their own 1040 individual returns free...
by Leif Jensen | Nov 8, 2021 | Taxes |
S corporations’ owners can blunt the impact of the 3.8% surtax on unearned income. Shareholders who materially participate in the S corporation’s operations generally aren’t subject to the 3.8% surtax on their allocable share of the firm’s income or on distributions...
by Leif Jensen | Nov 3, 2021 | Tax Court, Taxes |
We are all aware that the IRS uses ratio analysis to determine further scrutiny for their investigations. So taking higher-than-average deductions on Schedule A is an audit red flag if your write-offs are disproportionately large when compared with income reported on...
by Leif Jensen | Oct 11, 2021 | Taxes |
Do you contribute to a Traditional or a Roth IRA? The idea behind the investing in a Traditional IRA is that your tax rates will be less when you are retired. Most of our clients did not believe us when we explained that this is a fallacy, that they will be roughly...
by Leif Jensen | Oct 6, 2021 | Money Management, Taxes |
In Fiscal 2020 we had clients who sold their home and did not prepare for the tax consequences. What was the most surprising was the fact that two or maybe three clients all claimed that they rolled the funds into a bigger home and so the profits should not be...
