If you've fallen victim to a scam and lost money, you're probably wondering: Is scammed money tax deductible? The answer is complicated—and depends largely on why you fell for the scam. According to recent IRS guidance, your motive matters. If you were trying to make money (a profit motive), your scam-related losses may be deductible....Continue reading
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...
Deducting your rental property tax losses against your other income is tricky, as you likely know. You have to get the tax law to treat you—say, a computer engineer—as a tax-code–defined real estate professional. Let’s say you get there. Does that status allow immediate use of suspended passive losses? Unfortunately, the answer is no. Here’s...Continue reading
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
Paying yourself from your business depends heavily on your entity structure and understanding the tax implications of your choice. This post gives you a few key points to remember, but call us as Ken-Mar Tax for more in-depth tax advice. A common question among business owners is how to pay themselves from their businesses properly....Continue reading
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...
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
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
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
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
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
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
If you’ve recently been billed by the IRS with the claim that you owe a penalty for late filing, late payment, or missed employment tax deposits, I urge you to pause before making any payment. You may not have to pay that penalty at all. The IRS often imposes steep penalties for filing tax...Continue reading
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
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
Do you need to file a BOI report? If you own a small business, the answer is most likely, YES! Tens of millions of small businesses (with 20 or fewer full-time employees and $5 million or less in gross receipts or sales) meet the criteria and, therefore, must submit a BOI Report. Read the in-depth...