Author - SFS Tax & Accounting

Woman on laptop- 7 Ways For Business Owners to Reduce Their Taxable Income

7 Ways For Business Owners to Reduce Their Taxable Income

Taxes can be stressful for a business owner. You wear many hats, juggle many balls, and the last thing you want to do is give any more of your hard-earned revenue to the IRS than you need to. Thankfully, there are many tax savings strategies to reduce your taxable liability.  Here are 7 Ways For Business Owners to Reduce Their Taxable Income. Employ Family Member  One of the best ways to reduce taxes for your small business is by hiring a family...

December 2, 2021Read more...
Tax Moves to Make Before Year-End with hand holding cube saying 31 for taxable income

Tax Moves to Make Before Year-End

Tax Moves to Make Before Year-End - Are you looking to try and reduce your taxable income? Here are some tax-saving moves. However, they must be completed by December 31. Tax-loss harvesting  If you own stock in a taxable account that is not in a tax-deferred retirement plan, you can sell your underperforming stocks by December 31. And use these losses to reduce any taxable capital gains. If your net capital losses exceed your gains, you can even net up...

November 15, 2021Read more...
Tax Planning Session-1040

Why Do I need a Tax Strategy Session?

Why do I need a tax strategy session? A year-end tax planning meeting with your Enrolled Agent (EA) is a must for many taxpayers, especially individuals who own a business. For the business owner, the purpose of the meeting is to clean up your books (if necessary). However, the underlying reason for the session is to project your tax liability for the current year. Your EA can make recommendations to reduce the amount of taxes that you will owe. Bottom...

November 11, 2021Read more...
Employee Tax-Free Income -Woman with tax return

Employee Tax-Free Income

Most income received from your employer generally ends up on a W-2 tax form at year's end. However, some income is employee tax-free income. Here are eight common employee benefits that often avoid the impact of federal taxes. There are many more benefits to consider. Your tax professional can speak to this at your annual tax meeting.         1. Small gifts - non-cash The IRS calls these "de minimis" benefits. Small-valued benefits are not included in income...

November 1, 2021Read more...
Tax-loss harvesting, man with bubbe thinking about tax-loss harvesting

Tax-Loss Harvesting

Tax-loss harvesting, what the heck is that? Simply put, it is when you sell some investments at a loss to offset gains you've realized by selling other stocks at a profit. The result is that you only pay taxes on your net profit or the amount you've gained minus the amount you lost, thereby reducing your tax bill. Even with a strong market, you may not obtain the result you expect.  However, a poor-performing investment does have an upside. You may be able...

October 19, 2021Read more...
What is a Property Installment Sale. Image of vineyard

What is a Property Installment Sale?

Using an Installment Sale to Help Sell Real Estate and What to Look Out For You may be able to benefit from a tax deferral if you use an installment sale to sell a property and may even lower your tax bill. However, there is much to consider as specific "tax traps" to look out for. An installment sale is: You create an installment sale when you receive payments for sold real estate in the tax year of the sale and at least...

July 26, 2021Read more...
tax reurn and text that says- pay your tax bill

9 Ways Realtors Can Reduce Their Tax Bill

Do you know the 9 ways realtors can reduce their income tax bill? Is the IRS a dreaded agency that is working against the taxpayer? Tip #1: Gather Your Records To start, you’ll need to have all of the relevant documents on hand. This is especially important if you’re trying to maximize your deductible income. You’ll need documents and copies of the following: Copies of your receipts (scan or copy them if they may fade) Business earnings Business expense lists Deductions  Calendars,...

July 12, 2021Read more...
part of tax return-What the Heck is Backup Withholding

What the Heck is Backup Withholding?

If you are a taxpayer receiving certain types of income payments, the IRS requires the payer of these payments to report them on an information return. The person or business paying you does not generally withhold taxes from these types of payments, as it is assumed you will report and pay taxes on this income when you file your federal income tax return. So, what the heck is Backup Withholding? The tax withholding of federal income taxes on income typically does...

July 3, 2021Read more...
2021 Child Tax Credit Update2021 Child Tax Credit Update, image of 1040, IRS letters

The 2021 Child Tax Credit Update

The 2021 Child Tax Credit Update - Important changes to the Child Tax Credit (CTC) will help many families get advance payments of the Child Tax Credit starting in the summer of 2021. Half the total credit amount will be paid in advance monthly, and you will claim the other half when you file your 2021 income tax return. The IRS will issue the first advance payment on July 15, 2021. The new “Child Tax Credit Update Portal” allows parents to view...

June 23, 2021Read more...

Adopting? You Might Benefit from This Special Tax Credit

Are you adopting? You just might benefit from this special credit.  Here is some information you should know. What exactly is the adoption tax credit? The adoption tax credit is a nonrefundable tax credit meant to provide relief for the qualified costs you pay when adopting a child. The adoption process can be very costly. Fortunately, the adoption tax credit can help to offset some of those expenses. Here are some facts to help you understand the credit: • The maximum adoption credit taxpayers...

April 14, 2021Read more...