161 results for author: Daniel Morris


$75 Receipt Rule for Business Vehicles

The Question I was having a conversation with a tax preparer who says there is no such thing as a $75 rule for receipts on vehicle expenses. He claims that we need receipts for all car expenses. Then I began to ponder... isn't there a rule that states that we do not need receipts if the vehicle expense is less than $75? Answer Yes! The $75 rule is contained in IRS Regulation 1.274-5(c)(2)(iii), and the best explanation of what this rule says is found in IRS Notice 95-50,2 which states that the $75 rule applies to travel, entertainment, gifts, and listed property. IRC Section 280(f)(d)(4) states that “Listed Property” includes any ...

Is Now the Time to Transfer Your Home to Your Adult Child?

Let's say that your adult child wants to enter the world of homeownership and is looking to buy a home in today’s "Overheated" real estate market. Needless to say, anymore, it’s a struggle against the odds. Meanwhile, you’re ready to check out of your current home and explore your retirement possibilities. Maybe you want to downsize or move to a warmer climate or a lower-tax or no-tax state. Whatever the reason, you’re financially set and don’t really need the money from selling your home. So, consider the following options to help your home-starved adult child. Here, I will explain the Federal Income and Estate Tax Consequences....

Owe Taxes for Misclassified Workers? Section 530 to the Rescue!

Are you living every small business owner’s worst nightmare: an IRS audit? Okay, that’s bad. But even worse, suppose the IRS asserts that many of your 1099 independent contractors are W-2 Employees. Now you owe tens of thousands of dollars in unpaid payroll taxes! What are you going to do? Before you throw in the towel and make a panic-stricken call to your friendly neighborhood bankruptcy lawyer, hold on. There may be a way out! You may qualify for the safe-harbor provisions of Section 530. Classifying Your Workers: Employees or Independent Contractors? As a business owner, you are obligated to collect and remit payroll taxes for ...

Deducting Mortgage Interest When Your Name Is Not on the Deed

Tax law has an amazing break for unconventional homeowners. You can deduct your mortgage interest payments even when the deed to the house and the mortgage are in someone else’s name. Here’s what happened to Sue Davis. Sue could not personally qualify for a home loan. Her parents stepped in to help. They bought the house and signed the mortgage. But Sue lives in the home and pays all the expenses of the property, including the property taxes and the mortgage. Using a little-known tax rule, Sue deducts the mortgage interest payments she makes on her Form 1040. What’s even more interesting is that Sue found out about this ...


It’s Tax Filing Season—Mail Correctly to Avoid IRS Trouble

Parts of this article are published with permission from Bradford Tax Institute, © 2021 Daniel Morris, Morris + D’Angelo During your taxable life, you need to mail various documents to the IRS. You likely find the idea of taking a trip to the post office distasteful because you can suffer long lines and unhelpful postal people. What can make you endure that ugly trip to the post office? The IRS. The federal courts. Your wallet. How One Taxpayer Suffered The IRS claimed that Charles Crispino owed $134,327 in taxes (due to an inadvertent rollover of his traditional IRA to a SIMPLE IRA) and collected the money by levying on Crispin...

Don’t Rob Yourself of the Home Internet Deduction

Parts of this article are published with permission from Bradford Tax Institute, © 2021 Daniel Morris, Morris + D’Angelo Given the connected nature of remote work these days, you likely use your home internet to do a little or a lot of work. In this article, you will learn how to deduct the cost of your home internet. The rules that apply to the home internet also apply to all the other expenses incurred while working at home, regardless of whether you claim the Home-Office Deduction. Deduction on Schedule C If you operate your business as a sole proprietorship or as a single-member LLC, you file a Schedule C to report your ...

IRAs for Kids

Parts of this article are published with permission from Bradford Tax Institute, © 2021 Daniel Morris, Morris + D’Angelo Working at a young age in the United States is an American tradition. I did it... I worked at my Father's Construction Business at an early age that taught me a lot of lessons along the way. What isn’t so traditional is the notion of your child contributing to their own IRA, especially a Roth IRA. But it should be a tradition because it’s a really good idea. Here’s what you need to know about IRAs for your child. Let’s start with the Roth IRA option. Roth IRA Contribution Basics The only Federal-Income-Ta...

Thinking of Moving to a Lower-Tax State? Tax Angles to Consider

Parts of this article are published with permission from Bradford Tax Institute, © 2021 Daniel Morris, Morris + D’Angelo If you’re considering moving to a different state, taxes in the new state may be the deciding factor—especially if you expect them to be lower. This article identifies the relevant state-tax issues for folks who are thinking about moving to a lower-tax state. Here’s what you need to know. Consider All Applicable State and Local Taxes If your objective is to move to a lower-tax state, it may seem like a no-brainer to move to one that has no personal income tax. But that’s not a no-brainer! You must ...

Amplified: 10 Tax Strategies for S Corporations: What, How, Where

Parts of this article are published with permission from Bradford Tax Institute, © 2021 Daniel Morris, Morris + D’Angelo Question In last week's article "10 Tax Strategies for Schedule C Taxpayers: What, How, and Where", you discovered 10 Tax-Saving Strategies for Schedule C taxpayers, and you also know exactly where on and in the tax return you should record these tax breaks. Do you have a similar resource for S Corporation Tax Strategies? Answer We do now, thanks to your question. In our new PDF titled “10 Tax Strategies for S Corporations: The What, How, and Where”, we provide you with 10 tax-saving strategies that will ...