How the tax law changes that became effective on January 1, 2013 will affect you will depend upon the amount of income you earn.
If your income is $200,000/$250,000 (single/married filing jointly (MFJ)) or less, there are no significant changes to your income tax treatments. Your ordinary income, capital gains and dividend rates will remain the same.
For those who earn more than $200,000/$250,000 (single/MFJ), an additional [Read more…] about 2013 TAX LAW CHANGES BY INCOME LEVEL
All corporations are required to pay their shareholder/employees a reasonable compensation. One of the challenges facing corporations is how to determine reasonable compensation for these individuals, especially since “reasonable compensation” is not defined by the Internal Revenue Code or by IRS Regulations. Complicating matters is the legal entity selected by the owners of the corporation.
If a C Corporation is chosen, the corporation tends to pay “too much” compensation to its shareholder-employee to reduce taxes paid. The motivating factor for the corporation is [Read more…] about REASONABLE COMPENSATION PAID TO CORPORATE SHAREHOLDER-EMPLOYEES
It has come to our attention that there has been a problem with the feed on our blog page. If you have not received a blog from us in the past couple of weeks, we suggest that you log into our blog and look at the 3-4 most recent blog postings to make sure that you have not missed a posting that may be interest to you.
The Department of U.S. Citizenship and Immigration Services (USCIS) has released a revised Form I-9. This revised form is required to be immediately used by employers to [Read more…] about EMPLOYERS MUST USE NEW I-9 FORM IMMEDIATELY!
John and Marcella McCormack v. Commissioner, Docket No. 25758-11S, filed in February 11, 2013 is a good example of how taxpayers lose tax deductions and are assessed penalties by the IRS. The couple showed $5,360 of receipts on their Sch. C. home renovation business and reported a loss of $41,818. The majority of the business expenses related to them claiming 100% of the costs associated with their Mercedes 450 GL automobile which they claimed was used exclusively for business purposes. In addition to the home renovation business, they claimed that Marcella used the car for work related to her W-2 employer for which she was not reimbursed. When asked to provide evidence that the employer required the use of her personal automobile, none could be produced and the evidence showed that the employer provided company vehicles to it employees when on company business. When asked by the IRS to produce a mileage log to substantiate the business mileage [Read more…] about IRS DENIES TAX DEDUCTIONS – LESSONS TO BE LEARNED
