Your personal losses resulting from casualties and thefts are allowed to be deducted by the tax law, within certain limits. And a “theft” for tax purposes isn’t strictly limited to house burglaries or stolen cars. However, as you will see from several U.S. Tax Court cases, the deduction can hinge on the application of state  Continue Reading »

You’re probably fed up with high self-employment (SE) tax bills if you own a profitable, unincorporated Maine business with your spouse. Typically, an unincorporated business in which both spouses are active is treated as a partnership that’s owned 50/50 by the spouses — or a limited liability company (LLC) that’s treated as a partnership for  Continue Reading »

Is a Simplified Employee Pension (SEP) right for your Maine small business? SEPs are stripped-down retirement plans intended for self-employed individuals and small businesses. Consider establishing a SEP if you don’t already have a tax-favored retirement plan set up for your business, and if you act quickly, you may be able to claim a deduction for  Continue Reading »

This year, the IRS Whistleblower Office is celebrating its 10-year anniversary. The office was created under the Tax Relief and Health Care Act of 2006 to oversee the IRS whistleblower program, which is a critical part of overall enforcement and compliance. Informants have helped the IRS collect $3.4 billion in additional revenue since the program began.  Continue Reading »

The Basics of Section 179 Deductions Under the Protecting Americans from Tax Hikes (PATH) Act of 2015, the Section 179 deduction for qualified real property expenses was made permanent. However, claiming this deduction isn’t a no-brainer. This article will explain some of the pros and cons. The Sec. 179 deduction allows you to write off qualified  Continue Reading »

As many Americans already know, President Trump and Republicans in Congress have vowed to repeal and replace the Affordable Care Act (ACA). In its place, they plan to introduce a more market-based system of health coverage. Here is the one question many people have: How will the replacement plan help individuals without employer-provided insurance buy  Continue Reading »

If you own an unincorporated small business in Maine, one way to lower your self-employment (SE) tax liability is to convert your business to an S corporation. SE Tax Basics Incomes subject to SE tax include sole proprietorship income as well as partnership income that flows through to partners (except certain limited partners. These rules also  Continue Reading »

It is planned that the Affordable Care Act (ACA) will be repealed and replaced in the coming months by the Trump Administration and the Republican majority in Congress. In the meantime, however, employers must continue to comply with the existing rules for 2016, including the information reporting requirements and shared responsibility provisions. Three sets of FAQs  Continue Reading »

Does your Maine business offer health insurance and group-term life insurance, as well as an array of fringe benefits to its employees? While there are certain requirements, these fringe benefits are generally deductible by the company and tax-free to the employees as long as they are not discriminatory in nature. (If your company decides to reward  Continue Reading »

Last year, there were several significant tax developments that may affect federal income tax returns that individual and business taxpayers file in 2017. Here’s a quick look at 10 key changes that you should be aware of during this tax season. 1. Stand-Alone HRAs Just over a month before leaving office, President Obama signed the 21st  Continue Reading »