Business Loss

Can You Deduct a Big Business Loss? Not So Fast…

If you’re a self-employed contractor, consultant, or realtor who took a major business loss this year, you may be surprised to learn that you can’t always deduct the whole thing on your taxes. A rule called the Excess Business Loss Disallowance might limit how much of that loss you can write off—at least this year....Continue reading

Statutory Employees

Employee or Contractor? Don’t Get It Wrong—Especially with Statutory Employees

What are statutory employees? (https://www.irs.gov/businesses/small-businesses-self-employed/statutory-employees) If you run a small business, one of the most important decisions you’ll make is how you classify your workers: are they employees or independent contractors? It’s not just a paperwork issue—it’s a tax decision with real financial consequences. If you classify a worker as an independent contractor, you don’t...Continue reading

Estimated Tax Penalty

Beat the Estimated Tax Penalty with Strategic Withholding

How can yo avoid the estimated tax penalty with strategic tax withholding? As of April 2025 — The due dates for quarterly estimated tax payments for your 2025 tax year are: April 15, 2025 June 16, 2025 September 15, 2025 January 15, 2026 If you miss one of those dates, the IRS imposes a penalty...

Deducting a Loss from an Airbnb

Deducting a Loss from an Airbnb Bedroom Rental

My tax professional tells me that I cannot deduct a rental loss on my Airbnb rental. She says the Morcos case limits my expenses to the amount of my rental income. My Airbnb rental is a full bedroom and bath, accessible from a separate entrance. I had the rental in place for six months during the year...Continue reading

Home Office Tax Deduction

Combine a Home Office Tax Deduction with a Heavy Vehicle for Major Tax Write-Offs

If you are taking a home office tax deduction and considering purchasing a business vehicle, you may be eligible for significant tax deductions, especially when combining the qualifying home office. Here’s how: Heavy Vehicle Deduction In 2025, businesses can take advantage of: Section 179 expensing – Deduct up to $1,250,000 of qualifying business equipment, including...

real estate investor

For Tax Purposes Are You a Real Estate Dealer or a Real Estate Investor?

If you buy and sell real estate, you need to know the difference between being classified for tax purposes as a real estate dealer versus a real estate investor. Real estate dealers are in the business of buying and selling real property—property is their inventory. Real estate investors own property primarily to earn income from...Continue reading

Tax Deductions When Starting a Business

Avoid Losing Tax Deductions When Starting a Business

Starting a new business is an exciting endeavor, but it also comes with complex tax considerations. Starting a business for tax purposes involves more than ambition—it requires clear evidence of operational activity to justify deductions. A recent Tax Court case involving petitioners Kwaku Eason and Ashley L. Leisner highlights the importance of understanding when a...Continue reading

Business Vehicle Tax Deductions

Maximize Your Business Vehicle Tax Deductions with Year-End 2024 Vehicle Purchases

As 2024 comes to a close, there is still time to reduce your tax liability through strategic vehicle purchases for business vehicle tax deductions. Whether you need a new SUV, pickup, van, or electric vehicle, there are significant deductions and credits available—but timing and proper planning are key. At Ken-Mar Tax, we specialize in helping...Continue reading

2024 Tax Deductions Cleveland

2024 Tax Deduction Strategies to Implement Now

As the year draws to a close, it’s the perfect time to implement 2024 tax deduction strategies that can significantly reduce your tax burden. Whether you’re a business owner or self-employed, these six powerful tax-saving tips can help you maximize your deductions and keep more of your hard-earned money. 1. Prepay Expenses to Claim Tax...Continue reading

Get married tax implications

Will You Get a Better Tax Return if You Get Married?

Many of our self-employed and small business owner clients ask us about tax implications of getting married. Marriage is a life-changing decision, and it’s essential to consider how it impacts your financial and tax situation. Depending on your circumstances, getting married could simplify your taxes—or increase your tax burden. Here are key points to keep...Continue reading

Deduct My Dog

Can I Deduct My Dog or Cat on My Taxes?

When we ask our clients about dependents, a common response is "that depends, can I deduct my dog." Dogs, cats, and other household pets are expensive.  It costs an average of $1,270 to $2,800 a year to own a dog. Unfortunately, the expenses you incur for a family pet that provides you only with love...

GVWRs More Than 6,000 Pounds

List of Popular Vehicles with GVWRs Greater Than 6,000 Pounds

As you know, the fastest vehicle deductions are found with SUVs, crossover vehicles, and pickup trucks with gross vehicle weight ratings (GVWRs) greater than 6,000 pounds. These vehicles avoid the limitations on depreciation for luxury automobiles. Below, you will find some of the vehicles that qualify for the bigger deductions. But here’s the ultimate proof....Continue reading

Independent Contractors

Why it’s Becoming Harder for Businesses to Use Independent Contractors

Does your business classify workers as independent contractors instead of employees? You should know that the U.S. Department of Labor is trying to make it harder for all businesses to use independent contractors. The Department of Labor enforces the Fair Labor Standards Act (FLSA), the federal law that requires most employers to pay employees a...Continue reading

professional gambling tax strategies

Tax Court Ruling to Give Professional Gamblers Tax Breaks

If you gamble, take a bow and say thank you to Ronald A. Mayo, who took his gambling case to the Tax Court and won a big, precedent-setting victory for gamblers. Before getting to Mr. Mayo’s accomplishments, note that there are two types of gamblers: 1. Hobby Gamblers - those who participate in gambling for...Continue reading

gambling tax laws

Gambling Tax Laws

For this tax season, 2024, we have seen an increase in inquiries about gambling tax laws. With interest in writing off gambling losses, claiming gambling winnings and general questions about tax rules when it comes to gambling. See our recent posts, Can I Write Off My Gambling Losses? and When Do I Report Gambling Winnings...Continue reading

Real Estate Investments and Rentals

Tax Strategies to Increase Profits on Real Estate Investments and Rentals

Real estate options and leases with purchase options can enhance your real estate investments profits. Here’s a concise guide to help you navigate the potential pitfalls and maximize your returns. Real Estate Investments: Stand-Alone Purchase Option A stand-alone purchase option can be highly profitable. Here’s how it works: Immediate cash. You receive cash up front...Continue reading

Writing Off Gambling Losses in Cleveland

Can I Write Off My Gambling Losses?

Ever since posting "When Do I Report Gambling Winnings to the IRS?" we have had several inquiries about writing off gambling losses. So, here's the question: "Can I write off my gambling losses?" With sports gambling legalized in Ohio since January 1, 2023, it's the 2024 tax season when this massive increase in tax questions...

depreciation deductions - tax reduction strategies

Can You Speed Up Your Depreciation Deductions?

If you own rental properties than you know a significant tax benefit of owning investment property is depreciation—a deduction you get without spending any additional money. But regular depreciation for real property is slow. Residential rental property is depreciated over 27.5 years and non-residential property over 39 years, providing a relatively small deduction each year....Continue reading

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