4 results for tag: Tax Optimization

Home-Office Deduction If You Operate as a Corporation

Question What does the IRS audit manual say about the home office for an individual who operates his or her business as a corporation? Answer You will be interested in two boilerplate explanations from the Internal Revenue Manual that examiners use to explain why the IRS is denying the home-office deduction: We [the IRS] have disallowed your deductions for office-in-the-home expenses because you have not established that it was for the convenience of your employer. Voluntary, vocational, or incidental use of part of your home in connection with your employment does not entitle you to a business deduction. If you rent all or part ...

Part Two: Three More Answers on “Paying for College—A Handy-Dandy Strategy”

Parts of this article are published with permission from Bradford Tax Institute, © 2021 Daniel Morris, Morris + D’Angelo Last week, in the article I shared with you "Paying for College—a Handy-Dandy Strategy", you learned that you could pay your College Student, for example, $23,255 for a one-time job that was not subject to Self-Employment Taxes. With this strategy, you learned that you could deduct the $23,255 and your child paid $1,028 in 2021 taxes. This is good news, but you might ask: Do I need to give my student a 1099? Which one—the NEC or the MISC? What box do I check on the 1099? Since the $23,255 is not subject to the ...

Part One: Paying for College; A Handy-Dandy Strategy

As I have mentioned before, we at Morris + D’Angelo believe that Tax Optimization is one of the most empowering and responsible things you can do to protect your growing financial assets. Tax optimization looks at a multi-year approach to minimizing tax costs. Tax avoidance is integral to tax optimization. Some of these techniques and business practices like hiring your children as W-2 employees may have a benefit to you and your Bottom-Line. Parts of this article are published with permission from Bradford Tax Institute, © 2021 Daniel Morris, Morris + D’Angelo The Hire-Your-Child strategy works best for the Schedule C Proprietorship ...

2021 Last-Minute Year-End Tax Strategies for Marriage, Kids, and Family

Parts of this article are published with permission from Bradford Tax Institute, © 2021 Daniel Morris, Morris + D’Angelo If you have children under the age of 18 and you file your business tax return as a proprietorship or partnership, you can find big savings in the work your children do for your business. And if you operate as a corporation, don’t neglect to hire your children; there are good savings for you there, too. In this article, you will find five year-end tax-deduction strategies that apply if you are getting married or divorced, have children who did or could work in your business, and/or have situations where you give ...