When it comes to navigating complex tax matters, many in the Cleveland area may assume they need to hire a Cleveland tax attorney to represent them before the IRS. However, enrolled agents (EAs) like Ken Weinberg of Ken-Mar Tax provide a highly effective—and often more affordable—alternative for tax resolution. While both tax attorneys and enrolled...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
Do you owe the IRS more than you can pay? Choosing the correct method of relief when you can’t pay your taxes can eliminate much or all of your tax debt—which can amount to thousands, even tens of thousands, of dollars—and help you get back on track financially. If your tax bill has exploded beyond...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...
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
As you consider the process of shutting down your S corporation, it is crucial to understand the federal income tax implications that come with it. Here, I outline the tax basics for the corporation and its shareholders under two common scenarios: stock sale and asset sale with liquidation. Shutting Down Your S Corporation Scenario 1:...Continue reading
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
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...
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
As you consider shutting down your sole proprietorship or your single-member LLC treated as a sole proprietorship for tax purposes, it’s crucial to understand the tax implications of this decision. Here’s an overview of key points you need to consider. Sole Proprietorship Asset Sale Tax Implications When you sell a sole proprietorship, you sell its...Continue reading
Self-employment taxes are substantial, and most people want to minimize them. Self-employed taxpayers often avoid self-employment taxes by operating as an S corporation. The distributions from the S corporation are not subject to self-employment tax. But Social Security and Medicare tax must be paid on the shareholders’ employee compensation (which must be reasonable based on...Continue reading