One of the most significant changes in the new tax law is the doubling of the Standard Deduction. If you file as a “Single” taxpayer, you can take a standard deduction of $12,000 in 2018, which is double what you could take on your 2017 tax return. If you are “Married Filing Jointly”, you can […]
Author Archives: Jim Flauaus
Hire Your Children and Save a Bundle on Taxes
If your children go to private school, is their tuition tax deductible? The answer is no. If your teenager goes to summer camp, would the cost be deductible? Again, the answer is no. If you were to pay for your daughter’s college or wedding expenses, would you be able to write-off these costs on your […]
Three Steps To Take So You Won’t Miss Out on Meals and Entertainment Deductions
Real estate agents and self-employed individuals miss out on thousands of dollars in meals and entertainment deductions because their record-keeping has holes in it, or their accountant is too conservative and hesitates to take legitimate deductions. Here’s three simple steps to take to maximize your legal deductions in this area. 1. Respect the IRS–don’t fear […]
Three Simple Steps to Take to Maximize Your Auto Expense Deduction
If you’re a small business owner or “1099 income” earner, you can save thousands in taxes you shouldn’t have to paying by simply taking these three steps to maximize your auto and truck deduction. 1. Be strategic about which auto, truck or SUV you purchase. When it comes to IRS rules on autos and trucks, […]
Three Key Questions To Ask When You Select a Tax Accountant
Are you satisfied with the taxes you’re paying? Confident you’re taking every possible deduction on your tax return? If your answer is ‘no’, it may be time to select a new tax preparer. Here’s 3 key questions to ask in choosing your next accountant. 1. What kinds of clients do you work with? You’ll benefit […]
The Home Office: Your Key to Saving $5,000 or More in Taxes Every 5 Years
Realtors, self employed individuals and small business owners miss out on legal, legitimate tax deductions because their record-keeping has holes in it, or their tax preparer is too lazy and/or too conservative to take advantage of them. Not taking a deduction for your home office can cost you hundreds, even thousands of dollars a year […]
Do you fear an IRS Audit?
The second biggest tax mistake you can make is fearing, rather than respecting the IRS. Do you fear an IRS audit? Do you suffer from “audit paranoia”? Yesterday I sat down with a potential new client and reviewed last year’s tax return. OMG. She had paid really big bucks to a really big out of town […]
For every $1 you bring in… how much do you pay out in tax? (ie., what is your income tax rate)
A few weeks ago I ran a survey on my Facebook page asking whether your income tax rate has gone up, gone down, or stayed about the same over the years. The answers astounded me. Clearly most people think tax rates have gone UP. Some believe they’ve stayed about the SAME. But only one respondent believed […]
The Top 5 Reasons Most Small Businesses Should be Operating as an S Corporation
In a separate blog post, I shared 3 reasons why most attorneys are so quick to set up small businesses as Limited Liability Companies, as compared to an S Corporation. I also warned that you face higher taxes and increased audit risk by doing so. Now we’re going to follow up with the Top 5 Reasons […]
Do you need to make Quarterly Estimated Tax Payments?
Do you need to make Quarterly Estimated Tax Payments? Here’s the What, Who, When, Why and How What is Estimated Tax? It’s the method used to pay tax on income that is not subject to withholding. W-2 income has taxes withheld. On the other hand, 1099 income typically has no tax withholding. Neither does rental income, […]