Bankruptcy Tax Dischargeability Analysis
What is Tax Dischargeability Analysis (“TDA”)? Many taxpayers and even tax professionals do not realize that income taxes may be dischargeable in a bankruptcy. Treatment of discharging tax liability is one of the more complicated aspects of consumer bankruptcy law. Many professionals including bankruptcy attorneys do not always understand the rules in their entirety. Hire […]
Court Case You Must Be Aware of Regarding the Taxation of Your Cannabis Business
When operating a cannabis business as a “ganjapreneurs” from a taxation standpoint there are a few tax court cases you have to become intimately aware of. On June 13, the U.S. Tax Court issued an opinion regarding the application of IRC §280E. In Alterman v Commissioner of Internal Revenue (“Alterman“) the Court held, yet again, […]
Crytocurrency Non-Filers Should File or Face Potential Large Penalties
A few months ago, the IRS was successful in suing Coinbase for their customer list. Coinbase had to turn over 15,000 names of US Taxpayers that used their platform to buy and sell Cryptocurrencies. Eight years ago, cryptocurrency was worth a dollar, but now it’s trading at about $6,500. During 2017 and early 2018, it […]
Section 199- Production Activities Deduction
The Section 199 deduction (also referred to as the domestic manufacturing deduction, U.S. production activities deduction, and domestic production deduction) is a tax break for businesses that perform domestic manufacturing and certain other production activities. It was established by the American Jobs Creation Act of 2004 in an effort to ease the tax burden of […]
Understanding the New Sec. 199A business income deduction
Sec. 199A allows taxpayers other than corporations a deduction of 20% of qualified business income earned in a qualified trade or business, subject to certain limitations. The deduction is limited to the greater of (1) 50% of the W-2 wages with respect to the trade or business, or (2) the sum of 25% of the […]
Tax Credits for Small Employers Offering Health Coverage
The Patient Protection and Affordable Care Act provides a tax credit for an eligible small employer (ESE) for nonelective contributions to purchase health insurance for its employees. The term “nonelective contribution” means an employer contribution other than an employer contribution pursuant to a salary reduction arrangement. Qualified small employers, generally those with no more than […]
Safe Harbor Home Office Deduction
Taxpayers can elect a simplified deduction for the business use of their home. The deduction is $5 per square foot with a maximum square footage of 300. Thus, the maximum deduction is $1,500 per year. Here are the details of this simplified method: Annual Election – A taxpayer may elect the safe-harbor method or the […]
Employee Vs. Independent Contractor
Whether you hire someone as independent contractors or as employees will impact the amount as well as the types of taxes you will pay. Furthermore, it will affect how much additional cost your business must bear, what documents and information must be provided to you, and what tax documents must be given to the individuals […]
Frequently Asked Questions of Non-U.S. Residents Wanting to Incorporate Their Business in the U.S.A.
Non-U.S. Citizens wanting to incorporate their business or setup a branch in our country face different challenges than local entrepreneurs. The following is a compilation of the most frequently asked question about starting and running a company in the United States of America. Can I own / participate in the ownership of a corporation if […]
Many American Living Abroad Their Whole Live Are Receiving a Scary IRS Compliance Letter
Many American have recently discovered that they have U.S. tax compliance obligations even though they may be living outside the country and may not even have Social Security Number. This notification may have come in the form of a IRS letter delivered by a foreign bank that has custody of their money. In the letter […]