Author Archives: donovanniles

Can I leave the country and stop paying taxes? 

If you are a U.S. citizen or resident alien, the rules for filing income, estate, and gift tax returns and paying estimated tax are generally the same whether you are in the United States or abroad. You are subject to tax on worldwide income from all sources and must report all taxable income and payContinue reading “Can I leave the country and stop paying taxes? “

Can I write off my mortgage interest and other expenses on my vacation home?

Mortgage interest paid on a second residence used personally is deductible as long as the mortgage satisfies the same requirements for deductible interest as on a primary residence. If the home was acquired on or before December 15, 2017, then the total amount you (or your spouse if married filing a joint return) can treatContinue reading “Can I write off my mortgage interest and other expenses on my vacation home?”

Can I write off my business car or truck?

If you use your car only for business purposes, you may deduct its entire cost of ownership and operation (subject to limits discussed later). However, if you use the car for both business and personal purposes, you may deduct only the cost of its business use. You can generally figure the amount of your deductibleContinue reading “Can I write off my business car or truck?”

What is considered a gift?

Transfers Subject to the Gift Tax Generally, the federal gift tax applies to any transfer by gift of real or personal property, whether tangible or intangible, that you made directly or indirectly, in trust, or by any other means. The gift tax applies not only to the free transfer of any kind of property, butContinue reading “What is considered a gift?”

Can I take a home office deduction?

Home office deduction With a growing number of business owners now working from home, many may qualify for the home office deduction, also known as the deduction for business use of a home. Usually, a business owner must use a room or other identifiable portion of the home exclusively for business on a regular basis.Continue reading “Can I take a home office deduction?”

Can I write off tax-free wages paid to my child? 

One of the advantages of operating your own business is hiring family members. However, employment tax requirements for family employees may vary from those that apply to other employees. The following information may assist you with pointing out some differences to consider. Children employed by their parents If the business is a parent’s sole proprietorshipContinue reading “Can I write off tax-free wages paid to my child? “

What is an S-Corp or “pass through entity”?

S corporations are corporations that elect to pass corporate income, losses, deductions, and credits through to their shareholders for federal tax purposes. Shareholders of S corporations report the flow-through of income and losses on their personal tax returns and are assessed tax at their individual income tax rates. This allows S corporations to avoid doubleContinue reading “What is an S-Corp or “pass through entity”?”

What is the “SALT cap”?

Generally, you may take an itemized deduction, subject to limitations, for certain state, local, and foreign taxes you pay even if you did not pay the tax while in a trade or business or while carrying on a for-profit activity. You deduct the tax in the taxable year you pay them. The categories of deductibleContinue reading “What is the “SALT cap”?”

What can I deduct for meals and entertainment?

Enhanced business meal deduction For 2021 and 2022 only, businesses can generally deduct the full cost of business-related food and beverages purchased from a restaurant. Otherwise, the limit is usually 50% of the cost of the meal. To qualify for the higher limit, the business owner or an employee of the business must be presentContinue reading “What can I deduct for meals and entertainment?”