There’s good and bad news if you’re in the market for an electric or plug-in hybrid electric vehicle.   The good news is that the newly enacted Inflation Reduction Act includes a wholly revamped tax credit for electric vehicles that starts…

At first glance, the corporate tax rules for forming an S corporation appear simple. They are not. Basic Requirements Here is what your business must look like when it operates as an S corporation: The S corporation must be a…

All good things must come to an end. On December 31, 2022, one of the best tax deductions ever for businesses will end: 100 percent bonus depreciation.   Since late 2017, businesses have used bonus depreciation to deduct 100 percent of…

The Fed is finally taking aggressive action to fight inflation, but will it work? Where’s the stock market headed? Who knows? Real estate might be a good inflation hedge, but it’s a non-liquid asset and no sure thing. Clearly, this…

Through October 2022, you can buy Series I bonds that pay 9.62 percent interest. And you receive that rate for six months from the time of purchase. What happens after that? On November 1, 2022, the U.S. Treasury Department sets…

During much of 2020 and 2021, you may have qualified for the Employee Retention Credit (ERC). Lawmakers created this tax credit in response to the COVID-19 pandemic. With the ERC, you found (or could find) tax credits of up to…

Here’s a question: Does a member of a limited liability company (LLC) or a partner in a partnership have to pay self-employment taxes on the member’s or partner’s share of the entity’s income? Incredibly, the answer is not always clear.…

The IRS noticed that average gas prices across the United States exceeded $5.00 a gallon and took action.  Small businesses that qualify to use and do use the standard mileage rate can deduct 62.5 cents per business mile from July…

If you own an unincorporated business, you likely pay at least three different federal taxes. In addition to federal income taxes, you must pay Social Security and Medicare taxes, also called the self-employment tax. Self-employment taxes are not insubstantial. Indeed,…

Here’s a question I received from one of my clients: “I will hire my 15-year-old daughter to work in my single-member LLC business, and I expect to pay her about $12,000 this year. Do I pay her through payroll checks…