Tax Tips

Backdoor Roth IRA Still Available After The Tax Reform

Good news. The Tax Reform (TCJA) did not harm the backdoor Roth strategy. Do not miss tax free growth - over 40 year period 94% of your account balance is due to growth and only 6% is due to contributions. First, as you likely know, the Roth IRA is a terrific way to...

IRS Issues Final Section 199A Regulations and Defines QBI

Qualified business income (QBI) deduction is available for a sole proprietorship, partnership, S corporation, and certain trusts, estates, and rental properties. The tax code says QBI includes the net dollar amount of qualified items of income, gain, deduction, and...

Home-office Tax Benefits Require No Cash Outlay

Why is the home-office deduction so important? Is it really that different from other business deductions? The answer is YES!   Two Reasons There are two reasons why this deduction is important for every single business owner and is in a class of its own:1. It’s...

Audit-Proof Your Time Spent on Rental Properties

Today’s tax law puts your income and deductions into three separate buckets for tax purposes. Each bucket has its own rules and regulations. These are the three buckets: active, passive and portfolio. A real estate rental is automatically in the passive bucket if you...

Defeat the Kiddie Tax after Tax Reform

For 2018–2025, the TCJA tax reform changes the kiddie tax rules to tax a portion of an affected child’s or young adult’s unearned income at the federal income tax rates paid by trusts and estates. Trust tax rates can be as high as 37 percent or, for long-term capital...

Avoid the 1099 Prepaid Rent Mismatch

Business rent payments to your landlord are reported on IRS Form 1099-MISC, which is due January 31. For the 1099-MISC, do you simply look at your checkbook or payment ledgers to identify the amounts you are going to report? If so, you will create an incorrect 1099...

Answers to Common Section 199A Questions

The Section 199A tax deduction is complicated, and many questions remain unanswered even after the IRS issued its proposed regulations on the provision. And to further complicate matters, there’s also a lot of misinformation out there about Section 199A. Below are...

Five Strategies for Dealing with a Business Loss

If you have a bad year in your business, the new net operating loss (NOL) rules are designed to stop you from using your business loss to find some immediate cash. The new (let’s call them bad-for-you) rules certainly differ from the prior beneficial rules.   Old...

Tax Reform: Entity Choice- Proprietorship or S Corporation?

If you are a high earner AND not in the out-of-favor specified service trade or business group, you may want to consider operating as an S corporation to qualify for the new Section 199A 20 percent tax deduction. If you currently file as a Schedule C taxpayer because...

Avoid 1099 Headaches: Three Strategies

The easiest way to avoid the headaches and potential penalties caused by issuing 1099s to independent contractors is to structure your activities to: (1) minimize the number you have to issue, and (2) prepare in advance if you do have to issue them  Strategy 1: Select...

S Corporation Deductions

We specialize in helping clients clarify their taxes so they keep more of their money. Many small business owners who come to see us in Fort Worth, TX are generally unaware of even the basic tax saving strategies. Setting up an accountable plan is one of the best...

Maximize Family Support

Do you give money to your parents or other loved ones to make their lives more comfortable? If the answer is yes, is your loved one in the 0 percent capital gains tax bracket? The 0 percent capital gains tax bracket applies to a single person with less than $38,600 in...

Health Insurance Tax-Saving in Fort Worth, TX

We specialize in helping clients clarify their taxes so they can keep more of their money. Many small business owners who come to see us in Fort Worth, TX are generally unaware of even the basic tax saving strategies. S corporation has to pay small business...

Save more for retirement in 2019

Get ready to save more for retirement in 2019! IRAs are bumped up to $6,000 and 401(k) type plans are at $19,000 in 2019. Catch-up contribution limits are unchanged. Happy saving!   We specialize in helping clients clarify their taxes so they keep more of their...