It’s always nice to be recognized for your hard work. That’s why Tucson Local Media and Inside Tucson Business have created the Executive Excellence Awards. The team here at the Royce CPA Firm recently attended the 2018 Executive Excellence Awards, and we had a wonderful time! This year’s Executive Excellence Awards took place at the…
A Look at Family Tax Deduction Strategies
How does having a family affect your end-of-the-year tax calculations? The answer is: It depends! Whether you’re married or divorced, have kids or are childless, or are supporting any of your relatives, here are some tax strategies to keep in mind for the coming year. If your children work for you, treat them as employees….
Section 199A Deduction Strategies to Keep in Mind
Is it time to start thinking about your Section 199A deduction? If the end of the year is approaching, the answer is yes—that’s the best way to ensure that you’re able to claim a deduction at all! If you have income that is $157,000 or more, then it’s possible to reduce or even eliminate your…
What You Need to Know About Medical and Retirement Deductions
As the end of the year gets closer, it’s time to start seriously thinking about your taxes—and that means it’s also time to think about your medical plan and your retirement account. A little preparation now can pay off in the long run! Here are some important steps you can take that will help you…
Planning Your General Business Deductions for the End of the Year
The end of the year means it’s time to make sure that your financial affairs are in good order—and that means planning your general business deductions. Fortunately, this is easier than you might imagine! Here are some smart strategies that will help you reduce your tax obligation. Pay next year’s expenses in advance. If you…
Stock Portfolio Tax Strategies for the End of 2018
Are you planning your year-end stock portfolio? If not, there’s a very good reason you might want to do so—it can end up paying off! As long as you know how to handle your stock portfolio wisely, you can come up with a smart year-end tax strategy. Your goals are to steer clear of the…
The Royce CPA Firm at QB Connect 2018
We headed to San Jose earlier this month to attend QB Connect and we had an incredible time! Our team enjoyed hearing featured speakers like Mindy Kaling and Alex Rodriguez share their knowledge, and we had a great time exploring, learning, and networking. You can read about this year’s conference and get a snapshot of…
IRS Changes Rule on Deductions for Business Meals
In a much-welcome development, the Internal Revenue Service has announced that both client and prospect business meals are now considered to qualify as tax deductions, in keeping with the Tax Cuts and Jobs Act of 2017. But what exactly does the new rule mean for you? Under the new guidelines from the IRS, you are…
Are Expenses Deductible for an S Corporation?
Here’s a common scenario: You’ve decided to dissolve your corporation, and then you suddenly realize that you’ve got some additional expenses for that corporation. Since the corporation doesn’t exist anymore, you pay them yourself. Is this a tax-deductible expense for you? In fact, it isn’t. Since you didn’t incur the expenses through a corporation that…
Hiring Your Children to Work on Your Rental Properties
Have you considered hiring your children to work on your rental properties? If so, were you concerned when you did not see a line item for wages on Schedule E of your Form 1040? Don’t let that bother you. The IRS in its instructions explains that wages and other ordinary and necessary business expenses of…
Your Personal Home Is Not Your Tax Home
The fact that your personal home is not your tax home is one income tax issue. Here’s another: Business travel is different from business transportation. Your tax deductions, tax strategies, and tax records hinge on the following federal income tax–defined terms: Personal home Tax home Business travel Business transportation We know you don’t have an…
Reduce Self-Employment Taxes by Renting from Your Spouse
As a sole proprietor, you know that the 15.3 percent self-employment tax can eat up your profits in a hurry. You may be able to use a simple strategy to ease this tax burden. If you own an office building or other assets, you can set up a rental arrangement with your spouse that could…
How to Deduct Your Legal Fees after Tax Reform
The Tax Cuts and Jobs Act (TCJA), known as tax reform, made it more difficult for you to deduct your legal fees. The new tax reform law suspended (killed is a better word) your legal fees as 2 percent miscellaneous itemized deductions for tax years 2018 through 2025. This means you need to look for…
Tax Reform: Planning for Your New 20 Percent Deduction
As you likely know by now, the Tax Cuts and Jobs Act created a 20 percent tax deduction under new tax code Section 199A. The question for you: Will you reap any benefits from this new deduction? And the second question: If your chance of qualifying for the 20 percent tax deduction looks bleak, what…
Avoid Being an IRS Target When Your Business Loses Money
If you operate what you think is a business, but that business loses money, it may not be a business at all under the tax code. Such a money-losing activity can look like a tax shelter to the IRS, and that substantially increases your chances of an IRS audit. The tax code contains a business…
Divorce? Alimony? Tax Reform Says Get Divorced Now—Don’t Wait
Tax reform changes the alimony game. This may or may not have any relevance to you, but if it does, you will want to move quickly. The Tax Cuts and Jobs Act (TCJA) eliminates tax deductions for alimony payments that are required under post-2018 divorce agreements. More specifically, the TCJA’s new denial of alimony tax…
Tax Reform Update on Business Meals with Clients and Prospects
Note that in our previous announcements, we let you know that business meals with clients and prospects were no longer deductible based on the recent tax reform changes. But we now know that lawmakers plan to reinstate business meals with clients and prospects as 50% deductible. Here’s the updated strategy: deduct your client and business…
S Corporation Fringe Benefits after the Recent Tax Reform
Fringe benefits are usually a good thing—but there’s a catch when you own more than 2 percent of an S corporation. The good news? Federal tax law allows the cost of these fringes as deductible expenses for your S corporation. The bad news? You, the shareholder-employee who owns more than 2 percent, may suffer additional…
Good News: Tax Reform Lands a Blow to AMT
Tax reform made changes to the tax law that significantly impact the alternative minimum tax (AMT). The changes could mean more money in your pocket and less going to the government. If you own a C corporation, then you are the big AMT winner: Tax reform completely eliminated AMT for C corporations. C corporations are…
Tax Reform Makes Professional Gamblers Who Lose Money Suffer More
As a professional gambler, you know that tax law did you no favors before tax reform. But now, because of tax reform, tax law has you between a rock and a hard place for tax years 2018 through 2025, because during this eight-year period of darkness, you get no deduction for any part of your…