Good news. The new Paycheck Protection Program (PPP) law enacted with the stimulus package adds dollars to your pockets if you have or had PPP money. Further, if you are going to apply for PPP money for the first time, the favorable rules in this article apply to your newfound tax-free money. Before we go […]
As you doubtlessly know, Congress recently passed a massive new stimulus bill that was enacted into law on December 27, 2020. Most of the public’s attention has been focused on the bill’s authorization of additional stimulus checks and new PPP loans and other aid targeted to struggling businesses. But Form 1040 American taxpayers who are […]
New mileage rates announced by the IRS Mileage rates for travel are now set for 2021. The standard business mileage rate decreases by 1.5 cents to 56 cents per mile. The medical and moving mileage rates also decrease by 1 cent to 16 cents per mile. Charitable mileage rates remain unchanged at 14 cents per […]
Here’s a tax strategy that you should seriously consider. When a business provides an employee or a partner with a smartphone or similar telecommunications equipment primarily for non-compensatory business reasons, the following great things happen: The employee’s or partner’s business use is a working condition fringe benefit that is excludable from income. The employee’s or […]
You have to love the seven-day travel rule. First, the seven-day travel rule is crystal clear. Second, the seven-day travel rule allows you to deduct 100 percent of the transportation cost to a business destination even when you work only one day and spend the rest of the time at the beach or on the […]
Estimated tax tip savings: When you convert your vacation into a business trip, your transportation expenses suddenly become deductible. Consider that $1,200 business-class plane ticket back home to see your parents—with the right tax planning, you can deduct 100 percent of the cost. Isn’t it about time you took a vacation? Maybe you don’t think […]
You can reap major tax savings with the heavy vehicle and home-office combo. The heavy vehicle produces quick deductions. The home office that qualifies as a principal office eliminates commuting miles, and such an elimination can dramatically increase your business-use percentage of vehicles. For example, say you bought a $50,000 vehicle that you use 60 […]
Under the de minimis fringe benefit rules, your business deducts the cost of giving you or your employees flowers, fruit, books, and similar property under special circumstances. The recipients—you or your employees—receive these fringe benefits tax-free.
Situation Eddie Fiss works 40 hours a week at his small downtown office that he owns. He also spends 12 hours a week working at home doing all the administrative tasks required for his consulting business. Questions Can Eddie claim tax deductions for any of these? A. His downtown office only B. His home office […]