It is no secret that tax laws are confusing and frustrating. However, one strategy that can offer significant tax savings is the “pass-through entity tax” election. This election can be particularly beneficial for owners of S corporations, partnerships, and LLCs. Understanding how this election works and how it can save you money is crucial for
Category Archives: Tax
01
May
May
Introduction: It is no secret that pass through businesses entities are common. They actually make up about 94 percent of business forms in the United States. On top of that, there are about 2.2 million partnerships in the United States (via The Tax Foundation). They are so popular because they offer flexibility and shared responsibilities
16
Apr
Apr
Introduction: Navigating the intricacies of taxes can be daunting, especially when it comes to understanding the disparities between tax credits and tax deductions. While both serve the purpose of reducing your tax bill, their mechanisms and implications differ significantly. In this comprehensive guide, we’ll delve into the distinction between tax credits and tax deductions, provide
10
Jan
Jan
When the lottery is at the highs it has been recently, everyone is buying a ticket in the hope that they might be the one to win the millions if not billions of dollars. Around these times a very common question is asked is, “how are lottery winning taxed in California.” Although many California residents
05
Jan
Jan
As the new year rolls in, so does another tax season. For businesses, staying informed about each tax filing deadline and important dates is crucial to ensure compliance and avoid penalties. Whether you’re a seasoned entrepreneur or just starting out, understanding the tax calendar can help you plan and prepare effectively. In this guide, we’ll
20
Sep
Sep
Introduction With the current norm of remote work and the increasing number of people operating businesses from their homes, the home office has become more important than ever. Beyond the convenience and comfort it offers, your home office can also be a source of potential tax savings. With the information found in this blog you
Advisory|Tax, Strategic Guidance|Tax, Tax
What is the Difference: Amended Tax Return and a Net Operating Loss Carryback?
31
May
May
What is the difference between an amended tax return and a net operating loss carryback? During recent years with the ever-changing tax laws and updates related to COVID we have seen a dramatic uptick in the number of clients filing amended tax returns and net operating loss (NOL) carryback claims. This post explains the difference
14
Dec
Dec
What is R&D The research and development tax credit is a federal incentive that allows companies to reduce income tax liability in the current year dollar for dollar when they are preforming activities related to the development, design, or improvement of things like products, software, process, etc. Many businesses, especially smaller
07
Dec
Dec
What is an HSA? Health Savings Accounts, or HSA’s, are essentially personal bank accounts that can be used for medical expenses. Contributions are made tax free as well as withdrawals when they are made for qualified health expenses. People tend to use these accounts alongside their retirement plans to reduce their taxable income.
23
Nov
Nov
What is Basis? Basis measures the amount that the property’s owner is treated as having invested in the property. In most situations, the basis of an asset is its cost to you. The cost is the amount you pay for the property in cash, debt obligations, and other property or services.
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