Estimated taxes are a crucial part of the tax system for self-employed individuals, freelancers, business owners, and those with significant investment income. Understanding who needs to pay estimated taxes, when these payments are due, and how to calculate them is...
The IRS (Internal Revenue Service) imposes various tax penalties on businesses for non-compliance with tax laws and regulations. It's important for businesses to be aware of these penalties to avoid costly consequences. We've compiled a list of the eight most common...
Choosing the right entity for your business is a crucial decision that can have significant outcomes for your financial, tax, and operational aspects. Among the various options available, the S-Corporation, or S-Corp for short, is a popular choice for many small...
As another year has quickly passed, it’s time for our business clients (and landlords) to prepare for issuing 1099’s. The 1099 reporting window from year end to due date is short, with reporting due no later than January 31, 2024. Here is what we think you need to be...
The Augusta Rule You may have heard of the Augusta Rule over the last year or so because it has become increasingly popular on social media lately. The Augusta Rule is part of IRC Section 280A that allows a taxpayer to rent out their home tax-free for 14 days or less...
Tax time is over and if you're like most people, you probably don't even want to think about your taxes right now, but now is the best time to start thinking strategically. Working with a proactive CPA, instead of with someone who prepares your taxes and you discuss...
A tax deduction and a tax credit are two different types of tax benefits that can help reduce your overall tax liability, but they work in different ways: Tax Deductions A tax deduction reduces your taxable income, which in turn reduces the amount of income tax you...
I joined Aligned CPA in October, 2022 as the Director of Advisory Services, bringing CFO services to the tax world in order to foster perfect Alignment for our clients. My Experience I spent the last 19 years in the banking industry as a Senior Vice President, holding...
The newly enacted Inflation Reduction Act contains tax credits and depreciation benefits for owners of commercial property and residential rental property. If you implement various types of renewable energy improvements, you can qualify for hefty tax credits or...
Do you know all the ways to collect tax-free income? Surprisingly enough, there are still more than a few ways to do it. Here’s a summary of what we think are the best federal income tax-free opportunities for individual taxpayers. Break 1: Tax-free Income...
Small Business Taxes Self-employment taxes are to individual business owners what payroll taxes are to employers and employees. They fund Social Security and Medicare. All individuals with self-employment income must pay self-employment taxes, regardless of their age....
Tax Reduction Strategies As a business owner, you are in the tax reduction driver’s seat. This is true regardless of how you operate your business (sole proprietorship, partnership, S Corporation, or C Corporation). The tax planning strategies we’ve listed below apply...