The IRS Allows Flexible Allocations for LLCs Taxed as Partnerships—Don’t Ignore It!

The limited liability company (LLC) legal structure is a popular one among entrepreneurs. Founders may enjoy limited personal liability while avoiding double taxation present with traditional corporations. The Internal Revenue Code (IRC) also offers flexibility among LLC members (owners) when it comes to allocations of profits, gains, losses, deductions, and credits.  With great flexibility, however, comes great Read More

With Tax Laws in Flux, What Should You Do Now?

On September 13, 2021, Democrats in the House of Representatives released a new $3.5 trillion proposed spending plan that includes a wide array of changes to federal tax laws. Specifically, the Democrats proposed a number of significant tax increases and other changes to fund the plan, including increases to personal income tax rates and the capital gains tax rate, along with a major reduction to the federal estate Read More

3 Ways to Achieve Tax Benefits By Incorporating Charitable Giving Into Your Estate Plan

You are likely well aware of the tax benefits that come from donating to charity during your lifetime—donations to charity are tax-deductible. But you may be surprised to learn about the numerous benefits that are available when you incorporate charitable giving into your estate plan. As with donating to charity during your lifetime, dedicating a portion of your estate to a charitable cause can reduce the taxable Read More

The Ins and Outs of Forming Your Business Outside Your Home State

It’s a popular myth that it’s always best to form your business in a business-friendly state, like Delaware, Wyoming, or Nevada in order to save on taxes, benefit from increased privacy, and possibly have an easier time raising capital. However, for many businesses, incorporating in these states is completely unnecessary—and it may even cost your company in the long run. Let’s break it down here, so you can make the Read More

New Developments Transform the Role Life Insurance Plays in Your Estate and Financial Planning

Within the past year, a combination of new legislation and the recent change of leadership in the White House and Congress stands to dramatically increase the income taxes your loved ones will have to pay on inherited retirement accounts as well as increasing the income taxes you owe on your taxable investments. However, purchasing life insurance may offer you the opportunity to minimize the effect of these Read More

Saving Taxes for S-Corporations

There are many reasons why the owners of an LLC or corporation would choose to have their company receive S-corporation tax treatment. Corporations might want to take advantage of the pass-through taxation (shareholders must still report dividends on personal income tax returns). Members (owners) of an LLC might also be attracted to the S-corporation tax treatment due to recent tax reforms. Depending on your reason Read More

Tax Attorney vs. CPA: What’s the Difference?

When you’re dealing with something as complicated as taxes, you need a specialist who can meet your needs with surgical precision. Even then, not every tax professional is the same. Take, for instance, certified public accountants (CPAs) and tax attorneys; while both of these professionals have deep knowledge of intricate issues, they occupy distinct roles for taxpayers. In this blog, we’ll dive deeper into the Read More

Questions & Answers On COVID-19 Tax Changes for 2020

Throughout 2020, Congress passed multiple pieces of legislation—most notably the Coronavirus Aid, Relief, and Economic Security (CARES) Act—offering numerous forms of tax relief to help businesses like yours deal with the economic fallout of COVID-19.  That said, these new laws have also created a tangled web of new tax and accounting changes that can be quite challenging to keep track of. To help you sort through Read More

Using the Home Office Write-Off (for Business Owners)

Even before COVID-19 took over the country (and the world), working entirely from home was becoming more fashionable by the minute. This has highlighted the utility of the home office write-off, which is available to employees by the state of California. However, this blog will focus on using the federal home office deduction for business owners, as well as reducing your audit risk when using the deduction. What Read More

PPP Loan Forgiveness and Tax Consequences

Now that many business owners have hopefully seen Paycheck Protection Program (PPP) approvals and funds hit their bank accounts, you may be wondering how to ensure the loan is forgiven and what the tax consequences will be. We’ve got some of your answers. Recently, some business owners were surprised to find out that payments for payroll, and other expenses paid using PPP money, will not be tax deductible. It Read More