Who are your Dependents from tax filing perspectively? This could be confusing to a lot of taxpayers. Can the dependent have his or her own earned income? Do they have to live with you? Is there any age limit? These … Read More
Monthly Archives: January 2017
S-Corporation Compensation
The top two benefits of forming a S-corporation over sole-proprietorship are as follows: Set aside your investment into a separate legal entity to limit your liability Saving employment taxes (it could be widely named as self-employment tax, social security, medicare, … Read More
Implementation of hiring your children
Do you pay your children allowance in exchange for work (business work, not household work!), if so, this tax saving technique is perfect with you. Say if you hire your kid for work and pay them $5,000 annually on payroll … Read More
Work Opportunity Tax Credit (WOTC)
If you are considering to hire, you may want to hire someone from a targeted group, defined under US Department of Labor, to get the credit up to 40% of the first $6,000 wages paid. The new hire from the … Read More
Should your business hold the title of vehicle?
If you have vehicle for business use (over 50%), you can choose to either put the title under your business or personal name. Both are acceptable from IRS, you need to determine based on a few different factors. The advantage … Read More
3 Myths About Mortgage Deduction
It’s getting common for parents providing assistance to their children to buy home when the property price is soaring nowadays. There are three myths you need to be aware of. It is going to be pricy for these mistakes: Myths #1 … Read More
How to adopt de minimis safe harbor rule?
If you purchase an equipment or furniture and fixture for your business, you may expect to capitalize it as fixed assets which are subject to depreciate over 5 years in your books. This is a correct practice, but do you … Read More
S-Corp owner’s compensation
One of the popular tax planning strategies of S-corporation owner is to pay himself or herself as little as possible so as to save the payroll taxes (social security and Medicare). For example, if your business income before your salary … Read More