Introduction Most taxpayers spend more time shopping for a new television than planning for one of their largest annual expenses: taxes. Effective tax planning occurs throughout the year and allows taxpayers to make informed financial decisions before it is too late. What Is Tax Planning? Tax preparation reports what already happened. Tax planning helps influence what happens next. A properly executed tax plan evaluates income, business profits, investments, retirement contri

Who Is Really Preparing Your Tax Return? When most taxpayers hire a CPA firm or tax professional, they assume the person they're speaking with is also the person preparing or reviewing their tax return. In today's accounting industry, that assumption is not always correct. As accounting firms continue to face staffing shortages and increasing workloads, many firms have turned to outsourcing and offshoring as a way to manage capacity. In some cases, portions of bookkeeping, pa

Your business is growing and you're ready to hire some help. That's great—but before offering someone $25 an hour, it's important to understand that an employee who earns $25 an hour costs your business more than $25 an hour. There's More Than Just the Paycheck When you hire an employee, your business generally becomes responsible for costs beyond their wages, including: Employer Social Security and Medicare taxes Federal and state unemployment taxes Workers' compensation ins

Thinking about buying a truck, SUV, or other vehicle for your business? One of the first questions we usually hear is: “Can I write the whole thing off?” The answer is: possibly—but there’s more to consider. Start With Business Use The biggest factor is how much you actually use the vehicle for business. If a vehicle is used 80% for business and 20% personally, you generally can't deduct 100% of the cost and expenses. That's also why keeping good mileage records matters. Mile

If you rent a cabin, vacation home, Airbnb, or VRBO, there’s more to the tax picture than simply reporting the income. One of the first questions is: Should your rental be reported on Schedule E or Schedule C? Decisions made on day 1 can affect the taxes you pay years from now when you sell the property. Schedule E — Most Rental Properties If you’re mainly providing guests a place to stay, your short-term rental will often be reported on Schedule E. Cleaning between guests, p

This short article explaining how a holding company structure works by leasing to the operating LLC and why many successful business owners choose it.

Colorado Enterprise Zones have been around since 1986, and numerous modifications have taken place over the years. Basically, business located within one can receive tax credits for a number of different expenses that they would have made anyway! Sometimes the Enterprise Zone Credit ends up being the deciding factor of weather to make an investment or not. Click HERE to lookup your business address to see if you qualify. The Credits & Incentives Job Training Credit- Businesse

This article provides a quick breakdown of business operating structures. It details self-employment or payroll taxes, and the advantageous that S-Corporations have over the others.

One Big Beautiful Bill has been signed into law and is meant to make America take off like a “Rocket Ship!" There are measures certainly intended to strengthen the United States at home and support our interests worldwide. Spending cuts of $1.2trillion are paying for the investments. Many are concerned that programs like Medicaid are at risk. With the number of Americans on the program skyrocketing over the last several years to 21% of Americans, as reported by Fox News, mayb

The massive devastation caused by recent Wildfires has many thinking and preparing for the worst-case scenario. Especially for those of us living in a very arid-wooded area like the Rocky Mountains, near coastal waters & the flood plains, and those that are currently trying to figure out what's next. The new act eliminates the 10% adjusted gross income adjustment and removes the requirement to itemize on the tax return. That means that the total loss will no longer subject to

A common misconception is that you must be a realtor to file as a real estate professional on your tax return. That’s not true. As long as you meet the specific criteria and keep diligent records you may be able to file as one yourself! When you're a Real Estate Professional, you can take rental losses the same year that they occur and effectively offset other taxable income. This is different from the average person who carries these losses over year after year. As a real

One of the biggest advantages of an S-Corporation is the ability to reduce self-employment taxes. However, that benefit comes with one of the most misunderstood requirements in the tax code: reasonable officer compensation. Every year, we meet business owners who have heard they can save thousands of dollars by electing S-Corporation status. What many don't realize is that the IRS requires shareholder-employees to pay themselves a reasonable wage before taking distributions.

A federal court has challenged the BOI filing requirement contesting that it may be unconstitutional. The government will likely appeal the preliminary injunction after which time an appellate court will have the opportunity to uphold or overrule the injunction. This is something to keep an eye on. If the injunction is overruled you may still be required to comply. Keep reading to learn more. There is a new filing requirement in 2024 for LLC’s, and many folks are being caught

Americans are packing up their travel trailers, campers, and other recreational vehicles to trade a life in normal society for a life of adventure, and seclusion! It is my experience that the need to explore can only be satisfied by those places considered vast, wild, and untamed by the trappings of society. In the past, this reclusiveness came at the price of modern amenities, but not any longer. With the newest updates in solar technology, and a really SWEET Tax Credit the

Underpayment of Tax Penalty Many people filing their upcoming Tax Return will encounter a penalty for underpayment of taxes. This is a penalty based on what you should have gotten paid into the IRS by year end, and what was actually sent. People who own businesses typically experience penalties due to underpayment of estimated taxes, whereas W-2 employees will experience penalties because the amount withheld from their wages wasn’t enough. Wage Under Withholdings In 2022, thi

Running a successful business involves more than generating revenue—it requires maintaining accurate records and understanding which expenses are deductible. Good recordkeeping not only helps maximize legitimate tax deductions but also provides valuable insight into the financial health of your business and helps protect you in the event of an IRS audit. Why Recordkeeping Matters Good recordkeeping helps you maximize deductions, monitor profitability, prepare accurate financi

With fossil fuels in the cross hairs, Federal Tax Credits have become available to incentivize renewable energy investment- specifically solar energy. Many are still crunching numbers to determine if the $50,000-80,000 investment is right for them. Improved technology has enabled people to capture more of the sun's energy, and it’s made taking full sized homes off grid a real possibility. But with such a lofty price tag one would hope for a substantial credit to help offset s

The digital age has brought about a new way of doing business. Instead of showing up to a boring desk job, Remote Workers & Expatriates find themselves logging in from a destination that would be considered vacation by anyone else's standards. Digital Nomads have found a niche in this new world of business, and they operate from anywhere in the world! A multitude of tax issues arise when you decide that your remote work will include travel abroad for extended periods. Most