Hiring Your Spouse? Here are Ways to to Maximize Tax Savings By Tiffany McBroom and Melanie Sikma Did you know that hiring your spouse as an employee in your business can lead to significant tax savings? However, if not done correctly, this arrangement can backfire. Here are five key things to keep in mind to ensure compliance and maximize your benefits: Pay Tax-Free Employee Benefits, Not Taxable Wages Instead of paying your spouse a traditional salary (which is subject to payroll taxes), consider providing tax-free employee benefits. Certain benefits, such as health insurance, are not taxable income to your spouse-employee but are…
Author: Tiffany & Melanie
Tiffany & Melanie
Tiffany McBroom and Melanie Sikma are a sister powerpack combo! They formed One Stop Tax Strategists as a way to help as many entrepreneurs as possible; connecting their clients with the best tax and financial professional fit for them. They love to help their clients pay as little tax as legally possible and utilize that extra money to fund their dreams, and are excited to do that for you as well! https://www.onestoptaxstrategists.com/
Are You Making Estimated Payments? By Tiffany McBroom and Melanie Sikma The United States has a “pay as you go” tax system in which payments for income tax (and, where applicable, Social Security and Medicare taxes) must be made to the IRS throughout the year as income is earned, whether through withholding, by making estimated tax payments, or both. You suffer an estimated tax penalty if you don’t pay enough to the IRS during the year. The IRS levies this non-deductible interest penalty on the amount you underpaid each quarter. The penalty rate equals the short-term interest rate plus three…
Understanding Bad Debt Loss Deductions By Tiffany McBroom and Melanie Sikma The current economic climate makes this a good time to focus on bad debt losses. As an individual taxpayer, deducting bad debt losses has always been controversial with the IRS. To claim the deduction, you must first establish that the loss was from a bona fide loan transaction that went wrong. So be alert. Avoid ill-advised moves, such as making a loan that turns out not to be a loan but a contribution to the capital of a business entity. Avoid the informal advance to a friend or relative…
Understanding The Tax Laws and Regulations is Crucial for Real Estate Investors By Tiffany McBroom and Melanie Sikma Real estate investment is a popular and profitable venture for many individuals, but navigating the tax implications can be overwhelming. It is crucial for real estate investors to understand the tax laws and regulations specific to real estate to minimize their tax liabilities and maximize their returns. In this article, we will discuss some important tax tips for real estate investors. Keep Accurate Records The first tip for real estate investors is to keep accurate records of all financial transactions related to…
