Do you play a major role in a closely held corporation and sometimes spend money on corporate expenses personally? These costs may wind up being nondeductible both by an officer and the corporation unless proper steps are taken.

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This issue is more likely to arise in connection with a financially troubled corporation.


Continue Reading The Deductibility of Corporate Expenses Covered by Officers and Shareholders

Your not-for-profit may prefer to avoid activities that subject it to unrelated business income tax (UBIT). But if you accept advertising or sponsorships that aren’t substantially related to your tax-exempt purpose, you may unwittingly expose your organization to UBIT liability.

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The rules governing these types of support are complicated, so it’s important to have a basic understanding of what is and what isn’t potentially taxable.


Continue Reading What’s Taxable for Your Not-for-Profit’s Sponsorships and Advertising?

Do you have significant investment-related expenses, including the cost of subscriptions to financial services, home office expenses and clerical costs? Under current tax law, these expenses aren’t deductible through 2025 if they’re considered investment expenses for the production of income.

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But they’re deductible if they’re considered trade or business expenses.


Continue Reading Can Taxpayers Who Manage Their Own Investment Portfolios Deduct Related Expenses?

Are you age 65 and older and have basic Medicare insurance? You may need to pay additional premiums to get the level of coverage you want. The premiums can be expensive, especially if you’re married and both you and your spouse are paying them.

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But there may be a bright side: You may qualify for a tax break for paying the premiums.


Continue Reading Writing Off Medicare Premiums on Seniors’ Tax Returns

If you’re a business owner hiring your children this summer, you can obtain tax breaks and other nontax benefits.

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The kids can gain on-the-job experience, spend time with you, save for college and learn how to manage money. And you may be able to:

  • Shift your high-taxed income into tax-free or low-taxed income,
  • Realize payroll tax savings (depending on the child’s age and how your business is organized), and
  • Enable retirement plan contributions for the children.


Continue Reading The Tax and Nontax Benefits of Hiring Your Children