When to Have Your LLC Taxed as an S-Corp
When is the right time to have your small business taxed as an S-Corp? We look at some the pros and cons to consider when weighing this change.
Author Archives: Jason Ackerman
Staying on Top of Changes to the 20% QBI Deduction (199A) – One Year Later
How has the 20% QBI Deduction changed since it’s release last year? This deduction was a fundamental change to the tax code brought on by the TCJA, and just over a year later (thanks to a recent IRS FAQ), we have some additional clarity on how it affects taxpayers (and who gets left out in the dust).
Sometimes Congress Admits Its Mistakes – Correcting the QIP/Bonus Depreciation 15-Year Glitch
A technical glitch in the TCJA prevented taxpayers from taking bonus depreciation on Qualified Improvement Property. Now Congress is out to get this fixed.
Update: How to Ensure Your Real Estate Investment Qualifies for the 20% QBI Deduction
The IRS knows that there has been confusion as to whether or not rental real estate qualifies for the new 20% pass-through deduction on Qualified Business Income. The IRS issued guidance in the form of a safe harbor, which, if met, will ensure that your rental property qualifies for this valuable tax deduction. We break down the safe harbor to help you determine if your property qualifies…
How a Glaring Hole in Quickbooks Online Makes Life Difficult for Accrual-Basis Companies That Are Cash-Basis Taxpayers (And How to Work Around It)
Quickbooks Online does many things well, but the inability to indicate if a journal entry should affect both accrual and cash basis reports or if it should only affect accrual basis reports is a glaring hole that can make things difficult for small business owners (especially for businesses with deferred revenue), so we came up with a workaround…
The Hobby Loss Rules, Or How Your Hobby Can Hurt You Come Tax Time
Could the IRS view your side hustle as a hobby instead of a business? If they do, you could be in for a rough surprise come tax time. Know what it takes to ensure your business doesn’t fall prey to the brutal Hobby Loss rules.
Update: Aggregating Multiple Pass-Through Entities for the 20% QBI Deduction
Update: The IRS recently released guidance related to the 20% QBI deduction. In this article we dig into the concept of aggregation and what it means for owners of multiple related businesses.
Charitable Donations and the New Tax Law: Minimizing Your Tax Bill While Maximizing Your Giving
The new tax law made changes that can reduce or even remove the tax benefits of making charitable contributions. We put together a few strategies that you can use to save on taxes while maintaining your charitable giving.
When the Government Can Help Fund Your IRA: Finding the Silver Lining in a Down Year
Starting a new business can mean lower-than-usual income until things get up and running. So can taking off time to travel or care for a loved one. Make the most of a low-income year by having the government help you fund your IRA with the Saver’s Credit.
This New Election Allows Employees to Defer Income from Exercising Stock Options or RSUs for Up To Five Years Using Section 83(i)
An employee who receives equity-based compensation may have to pay tax when they receive or exercise stock or options, but the terms of the grant (such as a vesting period) may not allow them to exercise the option and/or sell the shares until a later date, leaving the employee with a tax bill and no way to liquidate their options to pull together the cash to pay the taxes due. The new Section 83(i) election aims to resolve this timing difference.