Employing your children in your sole proprietorship or partnership can provide significant tax advantages, including exemptions from FICA and FUTA taxes, the opportunity to shelter income through their standard deduction, and the potential for long-term financial growth through contributions to a Roth IRA.
Creating a separate entity, such as a partnership, to hold your real estate provides both insurance and tax advantages. Read more in this Business Tip.
You have a home office, but can you deduct it on your taxes? Before you do, make sure you pass two tests from the IRS. Find out in this week’s Tax Tip.
The Work Opportunity Credit has been modified by new legislation that extends the benefits for hiring unemployed veterans. Read more in this week’s Tax Tip.
Are you your own boss? The IRS has six key points on self-employment taxes they want you to know. Read the Article
If you regularly use independent contractors instead of hiring employees, you may still have to file Form 1099. Read more in this Tax Tip.
If you are a small-business owner, whether you hire people as independent contractors or as employees will affect the amount of taxes you withhold from their paychecks, as well as how much and what types of taxes you pay. Read this Tax Strategist for more.
Public Accountant, Wendy McCullough joins “Money Talks” to remind business owners about the reverted limits for Section 179 expensing and bonus depreciation.
In a sneaky attempt to avoid FICA, Social Security and Medicare payroll taxes, some S corporation owners and officers pay themselves artificially low salaries. The IRS is catching on and is paying very close attention to the salaries and corporate distributions S corporations pay out. For more information on how the IRS categorizes officers of S corps, read this C.P.A. Insight.
If you are self-employed, you may be able to hire your spouse or children as employees and take advantage of several tax deductions. The rules the IRS has for employing family members are very reasonable and simple to follow. For more detailed information on what tax benefits come with employing family members, read this C.P.A. Insight
