Entries by Jordan Schrage

Get more deductions with a home office

Lock Down Vehicle Deductions with a Home Office The IRS gives you two possible strategies for turning otherwise personal mileage into business mileage: Going to a temporary work location Establishing an office in the home as a principal office The temporary work location strategy contains some real unknowns, such as what is technically considered a […]

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S Corp Health Insurance 2018

Update: 2018 Health Insurance for S Corporation Owners S corporations continue to enjoy good news in 2018 when it comes to health insurance, and this also applies to 2017 taxes. You first have to thank the 21st Century Cures Act for: Reinstating and extending IRS Notice 2015-17 to eliminate the $100-a-day penalty Creating the qualified […]

Post TCJA Entertainment that is deductable

Entertainment That Survived Tax Reform As just discussed above, you may no longer deduct directly related or associated business entertainment effective January 1, 2018. Common forms of directly related and associated entertainment that are no longer deductible include business meals with clients or prospects, golf, football games, and similar business-building activities. That’s the bad news. […]

Luxury Cars now deductable?

Tax Reform Allows Bigger Vehicle Deductions  Finally, lawmakers did the right thing by increasing the luxury auto depreciation limits on business cars. The old luxury limits were unrealistic, punitive, unfair, and discriminatory against any car that cost more than $15,800. The new limits don’t create parity in all respects, but they are a big improvement. […]

S Corp Fringe Benefits post TCJA

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 […]

TCJA increases benefit of hiring kids

Tax Reform Increases the Tax Benefits of Employing Your Child The recent tax reform eliminated personal exemptions for taxable years after December 31, 2017, and before January 1, 2026. This makes your child worthless to you on your Form 1040. But there is a way to get even or, perhaps, much more than even. Let’s […]

Proving Travel Expenses post TCJA

Proving Travel Expenses after Tax Reform As you likely know by now, your travel meals continue under tax reform as tax-deductible meals subject to the 50 percent cut. And tax reform did not change the rules that apply to your other travel expense deductions. One beauty of being in business for yourself is the ability […]

Hiring your Kid in your rental

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 […]

Personal Home does not default to tax home

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 […]