126 results for author: Daniel Morris


Find the Winning Tax Law for Your IRS Audit

Parts of this article are published with permission from Bradford Tax Institute, © 2021 Daniel Morris, Morris + D’Angelo If you ever find yourself in a dispute with the IRS, it's probably a good idea that you know which documents you will need that will help your case. In this article, I will help you understand my preferred sources of Tax Authority; rules that absolutely bind the IRS and the Rules IRS gives credence to. Know Your Audience When you search for Tax Rules, keep your audience in mind. As you’ll see, the IRS and the courts disagree over the persuasiveness of the different sources of tax law. Unless you are fighting a ...

Tax Savings for Married Taxpayers Claiming Section 179 Deductions

If you are married, you need to know three special rules that can benefit your Section 179 deductions: The Section 179 business income limit includes W-2 income earned by both you and your spouse. Section 179 expensing treats you and your spouse as one taxpayer. If you and your spouse file separate returns, you need to make an overt election of how you are going to share your Section 179 deductions. The W-2 For Section 179, among other purposes, employees are engaged in the active conduct of the trade or business of their employment. Thus, wages, salaries, tips, and other compensation derived by a taxpayer as an employee count as ...

Loophole: Harvest Tax Losses on Bitcoin and other Cryptocurrency

Parts of this article are published with permission from Bradford Tax Institute, © 2021 Daniel Morris, Morris + D’Angelo You are not cheating when and if you use a loophole. The dictionary defines “Loophole” as a means of escape ... it’s a small opening to admit light and air or to permit observation. When it comes to tax losses on Bitcoin and other cryptocurrencies, you’ll find in this article an escape from a tax-loss rule that does not allow you to deduct a tax loss. Yes, you read that right! The tax code has rules that don’t allow current deductions for tax losses. Background In past articles, I may have explained the ...

Don’t Miss Out on the Employee Retention Credit

Parts of this article are published with permission from Bradford Tax Institute, © 2021 Daniel Morris, Morris + D’Angelo Since the start of all the challenges that the COVID-19 pandemic brought to us with all of its mandates, many inconveniences, and I’m sure business anxiety, one thing is for sure; that your U.S. Government does not want your small business to fail. The U.S. Federal Government wants your small business to survive and likely thrive. Since COVID-19 struck, the government has created free and/or easy money in the form of tax credits and loans that are forgiven. The Employee Retention Credit (ERC) is one such perk for your ...

IRS Income Limit Mistake on Home Office Deduction

Can you ever imagine that the IRS could ever be wrong? If the IRS were wrong, what would be your strategy? Situation You use the office in your home as the administrative office for your business. You use your downtown office as your sales or patient office. The downtown office is the office location where you make the cash register ring. Questions What percentage of your gross income comes from the office in your home? Why do you need to know this? Because the IRS Says... Pub. 587: In its home-office publication, the IRS says that because (a) part of your gross business income comes from your home office, and (b) ...

The U.S. $1 Trillion Infrastructure Package Spotlights Crypto Transactions / Crypto Taxes

It appears that the U.S. Senate is moving closer to passing a $1 trillion infrastructure package recently after lawmakers from both parties came together and voted to clear a key procedural hurdle. The measure would provide a massive injection of federal money for a range of public works programs, from roads and bridges to broadband Internet access, drinking water, and more. This occurred over this weekend in a rare showing of bipartisanship. For those of us who are paying attention, especially for our Customers, there is a provision, tucked inside this massive infrastructure bill that would require tax reporting for transactions similar to ...

You Took Coronavirus-Related IRA Money Last Year: What Now?

Parts of this article are published with permission from Bradford Tax Institute, © 2021 Daniel Morris, Morris + D’Angelo If you’re a traditional IRA owner who was adversely affected by the COVID-19 pandemic last year (2020), you may have been eligible to take a tax-favored coronavirus-related distribution from a traditional IRA. If so, that privilege was thanks to the Coronavirus Aid, Relief, and Economic Security Act (CARES Act). In this analysis, we will call these tax-favored traditional IRA distributions “CVDs.” Elsewhere, you may see them called “CRDs.” Whatever they may be called, this analysis explains how to get the ...

Can Home-Office Tax Deductions Include Garage Space?

Parts of this article are published with permission from Bradford Tax Institute, © 2021 Daniel Morris, Morris + D’Angelo Do you claim a tax deduction for a home office? Should you include or exclude your garage space in your calculations of business-use percentage? Home-office tax deductions require a look at the garage and other usable space as possible positive or negative factors in the home-office calculation. This takes more than a sentence or two. You need to read this article because there’s more to the garage space questions and answers than meets the eye. Besides the garage, this article also touches on the unfinished ...

Know These Four Magic Business Mileage Rules

Parts of this article are published with permission from Bradford Tax Institute, © 2021 Daniel Morris, Morris + D’Angelo When you know the rules related to business mileage, you Protect yourself in the event of an IRS audit, and Pay less tax. Take Henry, for example. Before he knew the mileage rules, he deducted 30 percent of his SUV’s cost. Once he learned the rules, he deducted 92 percent. Or look at poor Mark; he lost almost all his vehicle deductions in an IRS audit. Be like Henry! Here’s how... Start with this brief four-question quiz on the mileage rules that apply to your business (regardless of business type). Quest...

Tax Pros Speak: Returning to In-Person Meetings

Good News or Challenging News… depending on how you want to look at it we appear to be nearing “normalcy” from the COVID-19 Pandemic that still requires our responsible due diligence for the safety of our Customers and Morris + D’Angelo Team. The Centers for Disease Control and Prevention (CDC) is still advising flexible meeting and travel options (such as postponing in-person non-essential meetings) and using videoconferencing or teleconferencing when possible. The CDC also recommends holding in-person meetings with masks and social distancing in open, well-ventilated spaces. Meaning… Now is not the time to become complacent. We may see ...