How to Calculate Taxes on Your Social Security Benefits?
You might be surprised to learn that Social Security benefits aren’t completely tax-free. Based on your income, up to 85% of your Social Security benefits could be taxed. This applies to retirement, survivor, and disability benefits from the Social Security trust funds, but not Supplemental Security Income (SSI). You’re more likely to pay taxes on […]
URGENT: Federal Reserve Cancels Recession, Prices Fall, Massive Pivot Ahead
Attention everyone! Just a few hours ago, a significant development occurred. The Federal Reserve has chosen to pause rate cuts indefinitely. Surprisingly, investors are now considering the possibility of an unexpected rate hike within the next year, assigning it a 20% probability due to rising inflation, falling stock prices, and global tensions. Today’s Federal Reserve […]
Lie for Tax Reasons?
When selling a recreational vehicle to a private party, the buyer may sometimes request the seller to declare a lower transaction value on paper. This typically stems from a desire to reduce the tax impact of the purchase. Such a request can put the seller in a difficult moral and legal position. Ethical Considerations It’s […]
Tax Brackets Explained For Beginners in The USA
Understanding how tax brackets work in the USA can be a bit complex, so let’s break it down using an example of someone earning $100,000 a year. This total income can be organized into different segments or “piles” to represent tax brackets. How Tax Brackets Work Here’s a simplified breakdown of the income: Misconceptions About […]
Ensuring Payroll Tax Compliance: A Cautionary Tale and Proactive Steps
When you own and operate a business, it’s imperative to exercise vigilant oversight, especially regarding payroll taxes. Failure to do so can lead to dire consequences, as illustrated by the unfortunate case of Rodney Taylor. The Case of Rodney Taylor and Robert Gard, CPA Rodney Taylor entrusted his corporation’s accounting and bookkeeping to Robert Gard, […]
Partnership Dissolution: What to Expect Under Three Typical Scenarios
Winding down a partnership can be a complex and emotional process. As you navigate this transition, understanding the potential outcomes and tax implications is crucial. Here’s a detailed overview of what you might expect under three typical scenarios of partnership dissolution. Scenario 1: One Partner Buys Out the Others Overview In this scenario, one partner […]
Navigating the 2020 Employee Retention Credit (ERC) Adjustment: Compliance and Strategic Steps
The IRS mandates that anyone claiming the 2020 Employee Retention Credit (ERC) must adjust their 2020 wages on their tax returns accordingly. If you haven’t yet received your ERC funds and the IRS has not processed your claim, it’s essential to proceed with the necessary amendments to comply with tax laws and avoid potential penalties. […]
Maximising Tax Benefits: Selling Your Home to Your S-Corporation
Converting your home into a rental property can be a strategic financial move. One effective way to enhance the tax benefits of this conversion is by selling your home to your S corporation. This guide explores the benefits, addresses common doubts, and outlines the steps to implement this strategy successfully. Benefits of Selling Your Home […]
Beneficial Change in IRS Policy: The Partial Disposition Election
The IRS has introduced a significant change in its repair regulations, offering a partial disposition election that benefits property owners when replacing a structural component, such as a roof, on their office building or rental property. Previously, replacing a structural component like a roof meant the old roof’s remaining depreciation continued on your books, which […]
TAX EXPERT EXPLAINS: Money Habits Keeping You Poor
Over the past decade, I have deeply immersed myself in finance, earning a finance degree, an accounting qualification, and pursuing a career in investment banking. One crucial skill I’ve developed is managing personal finances, identifying poor money habits, and overcoming them. In this discussion, I’ll share nine common bad money habits that can hinder financial […]