If you're a solo business owner who prefers the benefits of a Roth retirement account—but your income is too high to contribute directly to a Roth IRA—there’s a powerful tool you should know about: the mega backdoor Roth! This strategy allows you to invest up to $70,000 ($77,500 if age 50 or older) into a...Continue reading
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
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
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...
BOI Reporting - If you have been following along with this saga you have seen us attempt to keep you updated along the way with our previous posts: BOI Report Requirements: New 2024 Businesses and Rentals (12/23), Do I Need a BOI for My LLC? Plus 12 More Answers to BOI Questions (2/24), BOI Reporting Deemed Unconstitutional...
Tax season is here, and with it comes the risk 2025 IRS tax penalties that can hurt both your wallet and your peace of mind. Did you know that failing to file your tax return on time could cost you up to 25 percent of the unpaid balance? Or that underpayment of employment taxes can...
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
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
If you live in a municipality that works with the Regional Income Tax Agency (RITA), paying local taxes is not just a recommendation—it’s a requirement. However, life gets busy, and sometimes tax obligations fall through the cracks. But what happens if you don’t pay your RITA taxes? Understanding the consequences and the steps you can...Continue reading
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...
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
You may be surprised by this headline, thinking, What? I must do 1099s for corporations? Are you kidding me? No, we’re not kidding. It’s only certain corporations, but still—this may be a shock. As you know, when your business makes payments of $600 or more from your business accounts to a person for services, you...Continue reading
When it comes to managing your taxes, understanding the difference between a tax accountant and a tax advisor is crucial. Both roles are essential, but they serve distinct functions that can significantly impact your financial health, especially if you’re self-employed or dealing with back taxes. Tax Accountant: The Day-to-Day Financial Gatekeeper A tax accountant is...Continue reading
If you’re a real estate professional who feels burdened by excessive taxes, it might be time to reassess your approach. Ken-Mar Tax is here to help. With over 20 years of experience, we have worked with more than 100 real estate agents across Northern Ohio, helping them optimize their tax strategies and reduce their tax...Continue reading
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
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
What is the best structure for my business? Use this chart to help determine how best to structure your business. Are you a business owner or entrepreneur trying to decide which entity structure is the best fit for your needs? Navigating the complex landscape of business entities can be challenging, so we provide this Business...Continue reading
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...
On January 1, 2024, the Corporate Transparency Act (CTA) went into effect. The CTA requires most smaller corporations, most limited liability companies, and some other business entities to file a beneficial ownership information (BOI) report with the U.S. Department of the Treasury Financial Crimes Enforcement Network (FinCEN). The BOI report identifies and provides contact information...Continue reading
If you started a business in 2024 pay attention to these new BOI Report requirements: If, in 2024, you start a small business or buy a rental property using a new limited liability company (LLC), you can trigger the need to file new federal reports and keep them up to date. Take BOI Report Requirements...