Can Your Research Credits Offset Your Payroll Tax Bill?

Does your small business engage in qualified research activities? If so, you may be eligible for a research tax credit that can now be used to offset your federal payroll tax bill. Which Research Activities Qualify? To be eligible for the research credit, a business must have engaged in “qualified” research activities. To be considered […]

Sharing Tax Issues in the Sharing Economy

Mobile apps and online platforms have revolutionized the way many businesses offer services to consumers. Examples of the so-called “Gig” are widespread — from ride sharing and vacation rentals to on-demand housekeeping and legal advice. If you decide to jump on the sharing economy bandwagon, it’s important to understand the tax rules for recognizing income, […]

Prepare: E-Verify May Soon Become Mandatory

Is your company using E-Verify? Many employers currently use the voluntary system, but you should know it may soon be mandatory. E-Verify is the federal government’s employee immigration status system that individuals and employers can use to ensure that members of their workforce have the legal right to work in the United States. This article […]

*NEW* Property Tax Credit for Elderly Individuals and for Military Retirees

On March 7, 2017 the Montgomery County MD Council passed Bill 42-16, which will provide a tax credit for people who are over 65 years of age and who either: Have owned and lived in the dwelling that they own for at least 40 consecutive years, or are retired from one of the United States’ […]

Consider Taxes before Converting Your Home to a Rental Property

Have you ever thought about becoming a landlord? This option may be tempting if your local real estate market is surging and rental rates are strong, especially if you’re already planning to relocate or downsize to a smaller home. Ideally, you’ll be able to shelter most or all of the rental income with tax deductions […]

Notify the IRS if You Change Your Address

It’s important to notify the IRS if you move and change your address. Under tax law regulations, a taxpayer’s last known address is the one that appears on the tax return you filed most recently — unless the IRS is otherwise notified. In one court case, it was made clear that the burden of informing the […]

Contractors: Timekeeping Is a High Risk Area

For most government contractors, direct labor costs are usually the most significant expense charged to government contracts and usually make up the base, or largest, element used to allocate indirect costs. Section 1001 of Title 18 of the United States Code (U.S.C.), provides that: “Whoever, in any matter within the jurisdiction of the executive, legislative, or […]

Meal Deductions: Tax Rest for the Weary

In one significant case, the U.S. Tax Court allowed a taxpayer to claim deductions for meals that stretch the limits of the traditional “sleep-or-rest” rule for business travelers. (Bissonnette, 127 TC No. 10) Background: Generally, you can deduct 50% of your meals and all incidental expenses when you are away from home on business. The […]

Reclassifying Business Expenses as Constructive Dividends

To be deductible, a business expense must be both ordinary and necessary. An ordinary expense is one that is common and accepted in your field of business. A necessary expense is one that’s helpful and appropriate for your business. Beyond Personal Expenses Constructive dividends can come in many shapes and sizes. The most common example […]

Green Tax Breaks: Are You Claiming All the Credits You Deserve?

In recent years, the IRS has offered “green” tax credits to individuals who purchase qualifying residential energy-efficient equipment and certain electric vehicles. Some of these breaks expired at the end of 2016. But others are still ripe for the taking in 2017 and beyond. Here’s what you need to know to take advantage. Expanded Green […]