News from Tax Department
It has been a busy week in Washington! Below are a few items we wish to share with you. TAX REFORM UPDATE: The U.S. House of Representatives, Committee on Ways and Means, issued a bill titled “The Tax Cuts & Jobs Act” which aims to simplify the tax code. The proposed bill includes a reduction in […]
Estimated Tax
As approaching year ending, it is a good time to check whether you withhold enough tax or made estimated tax payment to find your safe harbor. Taxes must be paid as you earn or receive income during the year, either through withholding or estimated tax payments. If the amount of income tax withheld from your […]
Hiring Dependents
Problem: Combined income and payroll tax can devour half the profit of a self-employed individual. It may be possible to shift income to a dependent child who will pay tax at a lower rate, or no tax.Applicable rules: Solution: An employer-parent can shield self-employment (SE) income from taxation by hiring his child. In addition, this could help […]
One day is very important!
The preferential 0 percent/15 percent/20 percent rates do not apply to all types of long-term capital gains and dividends. Specifically:
Start-up Considerations
When I started my business, below resources was very helpful. I would like to share with you.
What is Qualified Home Office?
To qualify for deductions, the area in the home used for business must be used regularly and exclusively: [IRC Sec. 280A(c)(1)] Example: Gail is an attorney and uses a den in her home to write legal briefs and prepare client documents. Her family also uses the den to watch TV. Because the den is not […]