Many of us want to work from home. Even more of us would work from home if it meant there was a guaranteed tax benefit. Unfortunately, unless you are self-employed, this is no longer the case. The Tax Cuts and Jobs Act of 2017 (TCJA) eliminated miscellaneous itemized deductions. In doing so, … [Read more...] about Working From Home: The Home Office Deduction
About Kyle Zak
How do Fortune 500 Companies Avoid Federal Income Taxes
How do Fortune 500 Companies Avoid Federal Income Taxes Another day, a new tax code, and big companies still pay no taxes. According to a 2018 report from the Institute on Taxation and Economic Policy, sixty Fortune 500 companies paid $0 in “federal income taxes on $79 billion in domestic pre-tax … [Read more...] about How do Fortune 500 Companies Avoid Federal Income Taxes
Better Living Through Accuracy
Better Living Through Accuracy The essential core of successfully defending your tax returns is meticulous and correct recordkeeping. As Kevin Costner said in his biopic Wyatt Earp, “fast is fine, but accuracy is final.”[1] This statement applies to both gunfights and tax returns. Furthermore, … [Read more...] about Better Living Through Accuracy
Six Democratic Candidates and the Tax Plans they Wish to Employ
Six Democratic Candidates and the Tax Plans they Wish to Employ The 2017 Tax Cuts and Jobs Act wrought sweeping changes throughout the Internal Revenue Code. As the race continues to see which candidate will face President Donald Trump in the 2020 election; STA explores a brief overview of Joe … [Read more...] about Six Democratic Candidates and the Tax Plans they Wish to Employ
Enough is Enough: Reasonable Compensation
A business may reduce its’ corporate income by paying employees a wage. If you work for your business, then you may deduct a reasonable salary as a business expense. Even the president and sole owner of a closely held corporation is considered an employee for tax purposes.[1] Fortunately, IRC … [Read more...] about Enough is Enough: Reasonable Compensation
How Amazon Paid $0 in Federal Taxes
How Amazon Paid $0 in Federal Taxes Jeff Bezos, the founder of Amazon, might be the richest man in America. Coincidentally, Amazon reported revenue of $232 BILLION, earnings before income taxes of $11.2 billion, and a tax rebate of $129 million in 2018.[1] According to an analysis from the … [Read more...] about How Amazon Paid $0 in Federal Taxes
Build Your Brand, Not Your Hobby
Are you engaged in a trade or business and subject to self-employment taxes, or are you participating in a hobby and subject to net investment income tax? Often, STA’s clients must confront this tax version of Sophie’s Choice. Even the co-producer of the Grammy-winning song “Midnight Train to … [Read more...] about Build Your Brand, Not Your Hobby
Deduct What You Love, With Hobby Losses
Deduct What You Love, With Hobby Losses A hobby is a regular activity done for enjoyment at leisure. STA is often asked; “Can I deduct my hobby losses?” When an activity is not pursued for profit, limited “hobby loss” deductions are allowable under section 183(b) of the Internal Revenue … [Read more...] about Deduct What You Love, With Hobby Losses
Write Your Will
Do not depend on the state or your relatives to honor your wishes after death. Write your will to transfer your property on your terms, protect your privacy, and mitigate potential bloodbaths over your estate. When Aretha Franklin died in 2018, her family thought she had no will.[1] In May of … [Read more...] about Write Your Will
Just Trust Me
Just Trust Me A trust is an agreement where you manage property to benefit someone else. In practice, a trust is a ten-dollar-to-fund strategy to transfer property to people you like while keeping it far away from the people you hate. To break down the “trust,” please embark on a magical … [Read more...] about Just Trust Me