Tag Archives: tax

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 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 does it mean “it is a writeoff”?

What Can I Deduct? To be deductible, a business expense must be both ordinary and necessary. An ordinary expense is one that is common and accepted in your industry. A necessary expense is one that is helpful and appropriate for your trade or business. An expense does not have to be indispensable to be consideredContinue reading “What does it mean “it is a writeoff”?”

What is a 1099-K and why should I care?

Be On The Lookout: The IRS is planning for a threshold of $5,000 for tax year 2024  Who gets Form 1099-K If you take direct payment by credit or bank card for selling goods or providing services – If your customers or clients pay you directly by credit, debit or gift card, you’ll get aContinue reading “What is a 1099-K and why should I care?”