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Tax Tip Tuesday: Records to keep when building a house

*this transcript was taken from our Tax Tip Tuesday post on Youtube.  You can watch the video here....

November 13, 2019

How industry expertise and a detailed plan will save one physician over $145,000 over the next 5 years

When David reached out to Cerebral for help, tax planning became more than just saving money. He was able to walk away with a long term financial plan.David had never had a tax conversation that focused on his individual needs. An internal medical Physician and family man, he wanted to find an expert who catered to physician families and could understand his specific situation. “I was looking for the exact opposite of what I had. Someone who would come up with options available to me to lower ...

November 7, 2019

Tax Tip Tuesday- Health Savings Accounts

*this transcript was taken from our Tax Tip Tuesday post on Youtube.  You can watch the video here....

November 5, 2019

Tax Tip Tuesday- Backdoor Roth

*this transcript was taken from our Tax Tip Tuesday post on Youtube.  You can watch the video here....

October 29, 2019

How Locum Tenens can use Per Diem rules and rates to stop tracking receipts

Are you familiar with the Per Diem rule? If you’re a physician doing locum tenens work, you want to be! Per Diem comes from the Latin meaning ‘By Day’, and so the ‘Per Diem rule’ refers to a daily travel allowance. You can make use of the Per Diem rule to compensate for lodgings, meals and incidental expenses you incur when traveling on business. This fixed allowance can be used in place of your actual expenses.  If you’re a physician who does a lot of locum work, the per d...

October 28, 2019

Tax Tip Tuesday: CPAs verses EAs

*this transcript was taken from our Tax Tip Tuesday post on Youtube.  You can watch the video here.Hey, everyone. It's Tax Tip Tuesday. Today I'm going to be talking about CPAs versus EAs. Most of you know what a CPA is, certified public accountant, but some of you might not know what enrolled agents are. I'm an enrolled agent. I thought I'd talk about both and the similarities and differences just so you're more educated.As I said, most of you know what a CPA is. A CPA has to complete abou...

October 22, 2019

Tax Tip Tuesday- Hiring Your Kids

*this transcript was taken from our Tax Tip Tuesday series on Youtube. You can watch the video here.Hey everyone, I hope you're ready for another Tax Tip Tuesday. So I get a lot of questions about hiring your kids, and the type of jobs they can do. So I generally recommend that you only hire kids if they're seven or older. So there are tax court cases out there that basically make that the safe age.Now, there are some people that will hire their kids as models for their website or other sor...

October 16, 2019

Can I write off a cruise?

On the week of September 16th I was with my family on a Disney Halloween themed cruise ship, enjoying the all encompassing experience of being out in the middle of the ocean for four nights. I have to admit, I am not a boat person and this tripped confirmed it! We had rough seas going in and out of Port Canaveral and my eldest son, Grant, and I didn’t take well to the increase in motion. However, Disney being Disney, they put on a heck of a cruise with great entertainment and food. Disney magi...

October 10, 2019

Be Aware of Tax Issues While Working Abroad

Here are three quick things to know about working abroad. Issue 1: Section 199A To qualify for the Section 199A deduction, your business income must be effectively connected with the conduct of a trade or business within the United States. The preamble to the proposed Section 199A regulations clarified that in almost all circumstances, this means the income has to be U.S.-source income to qualify. Under the tax law, you source your compensation for personal services based on where you perform th...

October 7, 2019

Creating More Business Meal Tax Deductions After the TCJA

Here’s good news for business meals: the Tax Cuts and Jobs Act (TCJA) removed the “directly related and associated with” requirements from business meals. The net effect of this change is to subject business meals once again to the pre-1963 “ordinary and necessary” business expense rules. You are going to like these rules. Restaurants and Bars Question 1. If, for business reasons, you take a customer to breakfast, lunch, or dinner at a restaurant or hotel, or to a bar for a few drinks...

October 2, 2019

Impact of Death, Retirement, and Disability on the 179 Deduction

What tax effect would death, retirement, or disability have on you or your business? Here’s an easy example to illustrate. Let’s say that in 2017, you purchased for business use a pickup truck with a gross vehicle weight rating greater than 6,000 pounds. Asserting that you use the pickup 100 percent for business, you expensed the entire $55,000 cost. What happens to that $55,000 expensed amount if you die, retire, or become disabled before the end of the vehicle’s five-year depreciation pe...

September 30, 2019

Take Advantage of the 199A Deduction for 2019

If you operate your business as a pass-through entity, such as a proprietorship, partnership, or S corporation, the profits of that business can generate the Section 199A tax deduction. No-Problem Businesses You qualify for the Section 199A deduction—period, regardless of pass-through business type—when you have pass-through qualified business income (QBI), and 2019 Form 1040 taxable income equal to or less than $160,700 single (and head of household) or $321,400 married, filing join...

September 25, 2019

Roth IRA versus Traditional IRA: Which Is Better for You?

Roth IRAs tend to get a lot of hype, and for good reason: because you pay the taxes up front, your eventual withdrawals (assuming you meet the age and holding-period requirements—more on these below) are completely tax-free. While we like “tax-free” as much as the next person, there are times when a traditional IRA will put more money in your pocket than a Roth would. Making the Decision on What’s Best Example. Say that your tax rate is 32 percent and that you will invest $5,000 a ye...

September 23, 2019

Beware: IRS Error in Rental Property Deduction Publication

Here’s a heads-up on mortgage insurance. Personal Residence Mortgage Insurance The deduction for mortgage insurance on a qualified residence ended on December 31, 2017. But don’t give up on the deduction. The personal residence mortgage insurance deduction is part of what is called “tax extenders,” and it’s highly possible that lawmakers will reinstate the deduction retroactively for all of 2018 and 2019. That’s the good news. The bad news is that to claim the retroactive deduction w...

September 16, 2019

Incorporation Is Not for Everyone

If you’re not good at paperwork, the corporate form of business is probably not for you. Let me tell you about a tax court case involving William H. Bruecher III. He learned a lesson by paying more than $27,000 in taxes on monies his corporation supposedly loaned to him. Mr. Bruecher’s corporation did not pay him a salary; rather, the corporation paid his personal expenses, classifying the payments as advances. Advance Account on Corporate Books Advances handled properly do not create a tax ...

September 12, 2019

Can the IRS Require Odometer Readings with the Mileage Rate?

Do you claim your business miles at the IRS optional rate? If so, imagine you are now being audited by the IRS for your business mileage. The IRS has requested odometer readings for your vehicle. You might wonder if the IRS can do this. The answer is yes. The tax code says that you must substantiate your business vehicle deductions by adequate records or by sufficient evidence corroborating your own statement, including the time and place of the travel and the business purpose. The standard mile...

September 11, 2019

Proven Tax Reduction Strategies for Sole Proprietors

If you operate your business as a sole proprietorship, there are many strategies to reduce your taxes.Let’s start with the following 10:Use the Section 105 plan to make your health insurance a tax-favored business deduction on your Schedule C.Employ your under-age-18 child to make taxable income disappear.Employ your spouse without paying him or her a W-2 wage.Rent your office, even your home office, from your spouse to save self-employment taxes.Establish that an office in your home is your p...

September 9, 2019

The Brains Behind Our Rebrand

We’re paying all of our attention to Medical Professionals You’ll notice we’ve made some big changes around here. We’re saying goodbye to Gallati Professional Services and coming back stronger as Cerebral Tax.  GPS has served us well over the past 5 years. It’s our family name. It means something personal to us. But we decided to rebrand because we want this business to mean something personal to you.  Our logo is a nod to the brain, (as you can probably tell) and we took the...

August 26, 2019

Our Pricing: The Cerebral Difference

One of the most frequent comments I receive from potential clients is “I am really surprised by your higher prices. It is not what I am used to but then again, you are different from my current tax advisor. Can you please explain how your services vary from my current advisor to justify the higher prices?” It’s a great question and I wanted to provide the top 3 reasons why Cerebral is different and why so many physicians choose to work with us. 1) I have been through so many of the same fi...

August 23, 2019

The Seven Deadly Sins of Small Business Owners

In our Facebook live episode, we've covered the “7 Deadly Sins of Small Business Owners."  I discuss the ways small business owners get in trouble with the IRS and how they can correct those mistakes.   Deadly Sin #1: Commingling Personal and Business FundsMany small business owners are in the habit of commingling both their personal and business funds.  Examples of commingling funds are:-Depositing business checks into your personal bank account.-Using the same bank accoun...

August 12, 2019

3 Tax Reform Changes To Save You Money

We hosted a Facebook live event on Tax Reform Changes.  You can watch the whole video here.  Here are my Top 3 Tax Reform Changes to save you money. Tax Reform Change #1: Lower Individual Tax RatesThe Tax Cuts and Jobs Act is the biggest tax bill in 31 years and while it may look like 503 pages of nonsense to you, there really is reason behind all that rhyme. The main focus is on cutting corporate tax rates. Not only for C-corporations but for the over 90% of America’s businesses tha...

June 13, 2019

Why are kids so awesome for tax savings?

On our “Kids And Why They Are Awesome for Tax Savings" Facebook Live session, I discuss tax planning strategies and some of the ways your kids can be a benefit for saving money during tax time.  Effects of Tax Savings Over Time Let’s take a look at how structuring your finances for tax efficiencies can completely change the way you grow your wealth for the future. In the below chart you can see the impact that taxes have on compounded interest over time....

June 10, 2019

The Basics of S-corps

There’s an old Morgan Stanley slogan that says “You must pay taxes. But there’s no law that says you’ve gotta leave a tip.” That’s a great attitude to keep in mind as we work through all of this material.Self Employment TaxesLet’s start with the problem we’re looking to solve, and that problem is too much self-employment tax. Most businesses start out taxed as sole proprietorships. Even if the owner establishes an LLC, they usually elect the default tax treatment, which is a disr...

June 5, 2019

Tax Planning with a Certified Tax Coach

A separate service from tax preparation, tax planning is the key to successfully and legally reducing your tax liability. By making tax planning part of your yearly strategy, you can use our experience and access to the most current new developments in the tax laws. We help you customize the best possible plan for you to minimize your taxes not just at the end of the year but throughout all of the year. Remember, we are here to work for you, not for the IRS. Our clients save many times...

May 29, 2019 Posts 1-24 of 24 | Page