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 …
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 …
Creating More Business Meal Tax Deductions After the TCJA Read More »
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 …
Impact of Death, Retirement, and Disability on the 179 Deduction Read More »
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 …
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 …
Roth IRA versus Traditional IRA: Which Is Better for You? Read More »
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 …
Beware: IRS Error in Rental Property Deduction Publication Read More »
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 …
Can the IRS Require Odometer Readings with the Mileage Rate? Read More »
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 …
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 …
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 …
