Business Strategies Archives - Page 3 of 17 - Think Outside the Tax Box

Business Strategies

By Dominique Molina, CPA MST CTS

Mitigating Risks: A Roadmap for Withdrawing Employee Retention Credits or Filing Income Tax Returns for Clients Who Have

Just in – the IRS dropped a hot alert about the Employee Retention Credit (ERC), and it's time to pay attention . With the March 22, 2024, deadline creeping up for the ERC Voluntary Disclosure Program, it's crucial for those who mistakenly filed a claim to take action. This program lets businesses repay just 80% of the claimed amount, so it's a chance to make things right. If your clients filed a claim that's still in the pipeline, it's time for a double-check. Review the guidelines ASAP and withdraw the claim if it doesn't pass muster.


Prepare For the Day When You Don’t Have More Work Than You Know What To Do With

In the last few months, I have been getting "seems like old times" feeling as interest rates rise. They remain laughably low by the standards of my early days in the business. I can remember prime being 20%. And then there are all these issues with office rentals thanks to the aftermath of the plague. One of the nice things about a career in accounting is that while you are affected by business cycles the need for our work is somewhat continuous. I’m thinking that now might be a good time to get ahead of the curve a little and study up on a Code Section that may be coming up a lot more – Code Section 108 – Income from discharge of indebtedness. Fortunately, a recent Tax Court opinion in the case of Michael G. and Julie A. Parker can provide us with a lesson in some of the important principles in this area.

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Minister’s Housing Allowance

There are tax perks to filing a tax return as an ordained minister. But some of the things you’ve heard in the pool of public opinion are false, while others have a hint of truth. For example, pastors and ministers do indeed pay income taxes. Churches, on the other hand, do not but that’s a different article for a different newsletter. If you are serving members of the clergy, it is important to understand these perks. One that I see messed up the most is the housing allowance. The IRS allows ordained ministers to exclude their housing allowance from taxable income. That is if they meet certain other criteria. The complete amount the church has deemed as a housing allowance is not always the amount that the IRS allows. Even with that, the excludable amount is only from income taxes, not all tax. Ministers also have special rules and a potential exemption when it comes to social security and Medicare taxes. This is where I see many well-meaning taxpayers and even tax professionals messing up. But that will not be you or your client. We are going to look at what the minister’s housing allowance is according to the IRS. Then we will look at who qualifies for it, and how to calculate it.

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Building a Strong Personal Brand as an Accountant: Strategies for Success

What is a personal brand? If you asked me that question in 2018, I would not know how to answer it. As I embarked on my journey to entrepreneurship, I took on any accounting-related project that came my way. I had yet to learn about the meaning of a personal brand. Fast forward to 2020, I launched my CPA firm just before the COVID shutdown. While established CPA firms could sustain or pivot to new services, I still had to figure out how to get clients, build my online presence, and establish trust to create my brand. I learned on my journey that in today’s competitive landscape, a personal brand has become more critical than ever. Professional success is directly related to one’s brand, especially in service-based industries such as accounting. Surveys show that more business owners and young entrepreneurs are looking for accountants they can rely on for not only their technical skills and qualifications but also for a personal connection. Therefore, creating a solid personal brand distinguishes accountants from the rest of the crowd, enhances their credibility, fosters loyalty, and opens doors for new opportunities. I will share my experience, dive into the significance of a personal brand for accountants, and provide actionable strategies to help you build a solid personal brand that resonates with your target audience.

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Salt Miner’s Run for the Roses Ends with a Big Tax Bill

Judge Mark Holmes of the United States Tax Court expressed admiration for the achievements of Joseph G. Bucci Sr. whose American Rock Salt provides the salt to keep many of the streets in the Northeast passable in the winter. You can learn a bit about that from an interview in New York by Adriane Quinlan . The positive remarks were no help in the ultimate result. Judge Holmes agreed with the IRS that Bucci’s three side hustles — a real estate enterprise, a farm, and some racing horses — were “Activities not engaged in for profit” making losses unallowable. The total tab including accuracy penalties for 2016 and 2017 was $711,980. Judge Holmes explained the result in a bench opinion, which is less formal than a memo decision. The trial began in Buffalo on June 14, 2023.

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Tax Planning for Gig Workers

The gig economy has opened moneymaking avenues for taxpayers who otherwise might have trouble making ends meet. But hustling has a price: Gig jobs also ignite tax complications that many of those workers probably don’t know about. Learning about those obligations too late can cost gig workers back-tax penalties and interest. They can also result in those workers sabotaging their own tax situation and paying too much money to the government. What do gig workers need to know about their complicated tax situation?

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Client Alert

Avoid Surprise Tax Hits When Using a Corporation for Your Business

Many taxpayers use S corporations (governed by Subchapter S of the Internal Revenue Code) or C corporations (governed by Subchapter C of the Internal Revenue Code) to legally reduce income taxes, payroll taxes, and self-employment taxes for their business. However, without careful planning, a taxpayer may have a surprise tax bill from using a corporation for federal tax purposes. This article will tell you when these unexpected tax hits can happen and how the taxpayer can avoid them with proper planning.

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Is the Augusta Rule a Tax Haven or a Ticking Time Bomb? New Tax Court Memo Cautions Users

Sure, the Augusta Rule can be a game-changer for your finances—but only if you tread carefully. Get one element wrong—be it your business structure, purpose, or documentation—and you could be inviting the taxman to your doorstep. And don't even think about going it alone; if your tax pro isn't well-versed in this complex write-off, you're essentially rolling the dice on an audit nightmare. The Augusta Rule has lately become the talk of the town on TikTok's tax scene, capturing the attention of both amateur bloggers and seasoned tax experts. In this article, we'll demystify what the Augusta Rule really entails, identify who stands to benefit from it, explore legal ways to leverage it, and highlight potential risks you should be aware of. First, let's delve into its fundamentals. Read on to find out how to navigate this high-stakes tax strategy without detonating your financial future.

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Why Tax Planners are Turning to ELI5 – The Results Will Amaze You!

Taxes can be a maze of numbers and jargon that leave even the savviest individuals scratching their heads. But what if there was a secret method that tax professionals were using to make it all seem as easy as child's play? Introducing the ELI5 approach!

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