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
If you get a 1099-K you likely have a side-hustle in the gig economy or sell goods or services through a third party. When you receive payments through a third party your third-party settlement organization (TPSO) will likely issue you a 1099-K. If so, you must know the IRS’s new reporting rules. TPSOs include: payment...Continue reading
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
The IRS in its repair regulations gives you a partial disposition election that benefits you when you replace a structural component such as a roof on your office building or rental property. (check out previous post: Landlords and Business Owners: New Law Improves Energy Tax Benefits) Previously, when you replaced a structural component such as...Continue reading
If your business is structured as an S corporation, not paying yourself an appropriate salary as an owner can torpedo your tax deductions, causing extra taxes and penalties. Tax Cuts and Jobs Act From 2018 to 2025, the Tax Cuts and Jobs Act is offering a 20 percent deduction on pass-through business income, with specific...
Are you not paying RITA? Are you facing other back taxes, local tax penalties, or unfiled income taxes with your local municipality? The team at Ken-Mar Tax understands the stress and confusion that can come with these situations. We specialize in providing RITA tax relief and resolving local tax issues with organizations like RITA, CCA,...Continue reading
We get many clients coming in asking about a how long the IRS can go back to audit your tax return, The good news is there is a statute of limitations on IRS audits and tax assessments. This time period is called the Assessment Statute Expiration Date (ASED). However, like all things IRS, it's more...Continue reading
The Corporate Transparency Act (CTA) became effective on January 1, 2024. The law was written to create a government database containing the identities and contact information of small business owners - specifically defined small corporate and LLC “beneficial owners.” The beneficial owners are the actual people who own the entity or exercise substantial control over it....Continue reading
For over 20 years, the IRS has issued an annual Dirty Dozen list identifying tax scams and avoidance schemes. This year’s list includes everything from employee retention credit claims to the use of fake charities. Before you invest your hard-earned money in these or other highly promoted tax schemes, you should check the IRS Dirty...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...
Now that so many types of gambling are legal in Ohio, when do you have to report your gambling winnings to the IRS? If you enjoy gambling, whether occasionally or frequently, it is crucial to understand how your winnings and losses can affect your tax liability. Basic Rules to Reporting Gambling Winnings Winnings: You report...Continue reading
Looking to maximize your vehicle tax deductions for 2023 and wondering if there's still time? - Do you need a replacement business car, SUV, van, or pickup truck? - Do you need tax deductions this year? - Do you need a tax credit to offset what you owe to the IRS? 2023 Tax Credits /...
It's not too late to consider 2023 tax strategies. Are you thinking of getting married or divorced? If so, consider December 31, 2023, in your tax planning. Here’s another planning question: Do you give money to family or friends (other than your children, who are subject to the kiddie tax)? If so, you need to consider...Continue reading
Are you hoping to write off more than one vehicle and have been told you can't? Contrary to popular belief, the IRS does not limit business owners to claiming deductions on only one business vehicle. When Should You Write Off More Than One Vehicle? You might maximize tax benefits by using multiple vehicles for business...Continue reading
With more people working from home, one has to wonder if the home-office deductions on tax returns are out of control or warranted. Will the IRS be scrutinizing home office deductions and what do they look for. In short, will your home office deduction pass in an IRS audit or will it raise red flags?...Continue reading
Form 8275 is filed to disclose all types of tax positions. When you're considering taking an aggressive position on your tax return that could result in a substantial tax reduction, but you're worried about having to pay a penalty, talk with Ken-Mar Tax for a free consultation. As an Enrolled Agent, Ken Weinberg is up-to-date...Continue reading
An inconvenient rule applies to how S corporation owners deduct the cost of health insurance that a corporation puts on its W-2s. The words that make this an inconvenient rule are “earned income,” and this is unusual because you generally think of earned income as a good thing. But for the S corporation owner who...Continue reading