Author name: Elizabeth Stroup

When a taxpayer owns a house where a relative resides, they navigate tax considerations related to rent, expense reimbursement, and impact on deductions. Let’s explore three common approaches based on the document provided and relevant IRS guidelines.  1. Charging Rent at Fair Market Value  Charging fair market rent ensures the property is treated as a rental for tax purposes. This […]

Many business owners believe that leaving money in the business checking account can delay or even eliminate taxes on that income. At first glance, that feels logical. If you do not take the money out, it seems like it should not count as income.  Unfortunately, that is not how the tax rules work.  This misunderstanding is extremely common and often

When does side income become a business?  Many people are surprised to learn they already have a business for tax purposes — even if they never formed an LLC or thought of themselves as “business owners.” The IRS uses a very broad definition of a business for tax purposes. Understanding whether what you’re doing counts as a business can dramatically affect your taxes. It determines whether you can

Electing S corporation status can feel like a smart tax move, and in many cases, it is. You may reduce self-employment taxes and keep more of what you earn. Those savings come with real responsibilities though: running payroll, filing Form 1120-S, tracking shareholder basis, and following strict IRS rules. Before you file Form 2553, make sure