ACCOUNTING (You have TWO businesses) • The bookstore or contracting business (example) is an operating business. Keep revenue and expenses separate from the rental business. This does not mean a separate checking account but it may be easier to maintain records. That is up to you. o The bottom line profit is taxable for income and […]
Read More… from LLC ROADMAP (Operating Business with Rental Activity)
Nonitemizers can claim an above-the-line deduction max of $300for charitable 2020 cash contributions. Individuals not itemizing Schedule A can take both the standard deductionand a max deduction of up to $300 in cash contributions. This is per return, meaning couples who file jointly can deduct only $300, not $600. The 60%-of-AGI limit on charitable gifts of […]
The 2020 standard mileage rate for business driving falls to 57.5¢ a mile. The mileage allowance for medical travel and military moves declines to 17¢ a mile in 2020. But the charitable driving rate stays put at 14¢ a mile. It’s fixed by law. […]
Donations to Charities are a tax deduction ONLY if they are a qualified organization per IRS. Click 501(c)(3) to show a map that can be researched by State. Gives lots of information. Giving money to friends or homeless, while it might be a nice thing to do is NOT a deductible charitable donation. […]
Taxpayers aged 70 1/2 (and older) can make Donations of up to $100,000 DIRECTLY from an IRA to a 510(c)(3) charity. You don’t get your hands on the money… it goes DIRECT. This QCD (Qualified Charitable Distribution) is NOT TAXABLE but it DOES COUNT toward RMD (Required Minimum Distribution). […]
Can unreimbursed employee expenses be deducted? No, not for a W2 employee. Any of the 2017 expenses and years prior that were subject to a 2% of AGI limitation are no longer deductible. Yes, for independent contractors. Yes, for Statutory employees. The best example of a Statutory Employee is an outside insurance […]
Read More… from 2018 Can Unreimbursed Employee Expenses be Deducted?
Assuming you are a W2 employee (not an independent contractor)….. There no longer is any deduction for unreimbursed employee expenses… GONE! That means, unfortunately, you have legitimate expenses you cannot deduct. In an ‘UNACCOUNTABLE’ plan (your allowance), it is suppose to be added to your W2 and taxed for both FICA and Federal Withholding. It is an […]
Read More… from 2018 Unreimbursed Mileage – Unreimbursed expenses for W2 Employee
SUMMARY OF IRS LINK https://www.irs.gov/uac/like-kind-exchanges-under-irc-code-section-1031 You cannot sell ANYTHING and defer taxes… You can EXCHANGE (qualified intermediary is hired.. you don’t get your hands on the money)… subsequent property is identified within 45 days… and have a total of six months from sale date to purchase like kind property. When the exchange is done, if you […]
Tennessee may soon have NO income tax. Now it taxes only interest from notes and bonds and dividends. Recently the new law lowers the tax rate to 5% (from 6%) for 2016 and drops further until the tax is gone at the end of 2021. There are SEVEN states with no income tax: Alaska Florida Nevada […]
Read More… from SEVEN states have no income tax… one more soon
