Small business owners know that high performers seek out jobs that offer them an opportunity to grow and to develop professionally. Benefits are also important to job seekers. However, salary plays a major role in the decision to accept a job offer. Every owner of a small business struggles with the question of how much to pay a new hire. As a small business owner, you understand that applicable wage… Read More
Saving Net Investment Income Tax (NIIT)
The 3.8% NIIT applies to the lesser of your NII or your excess modified adjusted gross income (MAGI) above an annual threshold of $200,000 for single filers and $250,000 for joint filers. For example, net investment income includes interest and dividends, capital gains and gains from passive activities. Certain other items, However, IRA and qualified retirement plan distributions and income from an active business don’t count as NII. Accordingly, I… Read More
S Corp, C Corp and LLCs – Which Works Best for You
S corporations, C corporations and Limited liability companies (LLCs) are all business structures that differ in ownership, taxation, benefits and disadvantages. Ownership C corporation can include unlimited number of shareholders including non-US citizens. S corporations can have up to 100 individual shareholders including LLCs, partnerships, or many trusts. S corporations also can’t have non-U.S. citizens or residents as shareholders. LLCs can have an unlimited number of members, including non-U.S. citizens and… Read More
Home related energy credit – Summary of Energy efficient home improvement credit and Residential clean energy property credit
Energy Efficient Home Improvement Credit Residential Clean Energy Property Credit The residential clean energy property credit is a 30-percent credit for certain qualified expenditures made by a taxpayer for residential energy efficient property. The IRS extended the residential clean energy property credit through 2034, modified the applicable credit percentage rates, and added battery storage technology as an eligible expenditure. The credit applies for property placed in service after December 31,… Read More
Good News! You May Be Worth More Than You Realize
As you write out another check to make your monthly mortgage payment or for your child’s college tuition, you may not be feeling particularly flush. In fact, you may be feeling decidedly cash strapped. However, it is possible that you may be better off financially than you realize. For starters, if you own a home, you have an asset that has the potential to increase in value and has historically… Read More
Losing tax-exempt status (IRC section 501(c)(3))
Organizations recognized as exempt from federal income tax under this section of the Internal Revenue Code include private foundations, churches, schools, hospitals, and many other types of public charities. A 501(c)(3) organization can lose tax exempt status if the organization engaged to involve in following actives. 1. Private Benefit/Inurement Private benefit: 501(c)(3) organization’s activities should be involved in satisfying the purpose of tax-exempt organizations. Its activities should not serve the… Read More