Real estate activities fall into several different tax categories. It could be classified as a business or an investment, and that difference can change your tax bill. Rental Properties Rental real estate is sometimes treated like a business and sometimes treated like an investment activity, depending on what aspect of the tax law you want to dive […]
Real Estate: Business or Investment? Read More »
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
How Should a Taxpayer Handle Owning a House Occupied by a Relative? Read More »
You’ve worked hard to bring in a good new employee. You interviewed, agonized, made the offer—and now they’re in the seat. But the reality is, they still have a lot to learn. Now your job is to give that new employee the best possible chance to succeed. Because what happens next will determine whether they become an asset—or a drain
How to Train and Manage Your New Employee for Real Productivity Read More »
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
Does Money Left in the Business Bank Account Impact Taxes? It’s Complicated Read More »
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
Surprise! You Just Started a Business Read More »
Many business owners would just look at inflation in terms of the standard published rate, such as the CPI (Consumer Price Index), and feel on top of things if they do an equal or greater price increase this year. But this article is going to show you how inflation specifically impacts your business and help you understand what actions
The Business Owner’s Guide to Dealing with Inflation Read More »
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
S Corporation Election: Tax Savings with Strings Attached Read More »
If you only look at your numbers once a year, you’re trying to run a business based on financial guesses. Guessing wrong can cost you dearly. Monthly accounting is different. It turns your numbers into a tool that saves you time and money. Annual tax survival mode is sometimes enough to keep the IRS off your back, and it can seem like a
Monthly Accounting: The Tool Smart Business Owners Use to Increase Profit Read More »
At some point, every growing business runs into this question: “Do I need to offer a retirement plan?” What looks like an employee benefit decision is really a business and tax strategy decision. Get it right, and you can save more for yourself, reduce taxes, and improve retention. Get it wrong, and you’re stuck funding a plan
Should I Offer a Retirement Plan to My Employees? Read More »
Most business owners don’t know what to ask when hiring an accountant. And too many firms make vague promises, or set no expectations at all. So here are some clear, direct answers from Bearden Stroup CPAs to 4 key questions you should ask before you choose an accountant. What does your pricing include (and what doesn’t it)? Software: Our quotes will include subscriptions to the software that you need, so you don’t have to pay
4 Key Questions You Should Ask Before Hiring an Accountant—And Our Straight Answers Read More »
