Captive Insurance
When businesses grow and become more profitable, owners may look for strategies to build cash reserves for the unknown future. Forming a captive insurance company, also called an 831(b) Plan, is one strategy for businesses with excess cash to lower their tax bill in the current year while providing flexibility in future years. A captive […]
Client Gifts
Many business owners like to express their appreciation to clients and referral sources with gifts, especially around the holidays. Understanding IRS rules around gifts can help you show your generosity without creating any surprises at tax time. $25 Limit Businesses may not deduct more than $25 for business gifts made to the same person. For […]
“I filed an extension. Why do I have to pay penalties now?”
This is one of the most frequently asked questions we receive around the extended October deadline! In the spring, we just as frequently hear, “I have an extension. Why do I need to make an estimated payment?” Unfortunately, even though an extension grants you additional time to file, it does not give you additional time […]
Business Owners: Are you deducting your health insurance premiums?
With the high cost of healthcare coverage, self-employed taxpayers may find relief by taking advantage of tax deductions for health insurance premiums. Self-employed taxpayers include sole proprietors, members of LLCs, partners, and owners of S-corporations. Who is not eligible? You may not take the deduction if you were eligible to participate in an employer-subsidized plan. […]
Section 179 Deductions
Tangible business assets include vehicles, equipment, and furniture. Depreciation is an accounting method used to allocate the cost of a tangible asset over its useful life. Depreciation ties the cost of using an asset with the benefit gained over its useful life. The IRS specifies the useful life of many types of assets under the […]
U.S. Energy Investments
Overview While many potential tax saving strategies are limited to business owners, oil and gas deductions can benefit high-earning W-2 employees as well. Energy investments avoid the phased-out deductions for real estate losses that investors face between $100,000 and $150,000 in income. These investments offer large tax deductions in the first year followed by attractive […]
Overview of the Inflation Reduction Act of 2022
Background The Inflation Reduction Act that was signed into law in August is a remnant of the “Build Back Better Plan.” The original $6 trillion dollar proposal was supported by President Biden and essentially comprised his domestic agenda. While most of the original proposal died in legislation, a very limited portion of the plan was […]
1031 Exchanges
Introduction If you purchased an investment property a few years ago, you were probably thrilled to see the skyrocketing prices in the Phoenix valley and across the country recently. For those that sold properties at top dollar, however, their excitement about their profits might have been dampened by the blow of a big tax bill. […]
