If you are working for a parent who is a sole proprietor or a partnership where both partners are parents, then you may still be subject to S E tax. This is because the parent-child relationship does not change the fact that the work is still considered self-employment.
Posts in the Accounting Instruction category:
Standard Mileage, Excess Business Loss, Qualified Paid Sick Leave Income Tax 2023
Rental properties can be a great investment, but it’s important to understand the tax implications. In this blog, we’ll be discussing some of the key points related to rental properties and taxes for the tax year 2022.
Sale Exchange Rental Property, Tax Free Exchange
When it comes to selling or exchanging rental property, there are several tax implications that you need to be aware of. The first step is to calculate the gain or loss from the sale or exchange, which can be a complex process that requires detailed record-keeping and knowledge of tax laws and regulations.
Net Investment, Self Employed & More
The net investment income tax (NIIT) is a 3.8% tax on the lesser of net investment income or the excess of modified adjusted gross income (MAGI) over the threshold amount. MAGI is basically your AGI with some slight modifications. Net investment income may include rental income and other income from passive activities. This tax is one of the issues with rental property, which is why it is often reported differently or on another form other than a Schedule C.
Filing Earned Income Tax Credit (EIC) No Children Part 1 Income Tax 2023
Understanding the Earned Income Tax Credit (EITC) can be a daunting task. With so many variables involved, it’s easy to get lost in the weeds. However, it’s important to understand the EITC because it can be a significant benefit for low-to-moderate-income individuals and families.
Deduction Amount, Depreciable Basis & more Income Tax 2023
If you’re a business owner or a tax professional, you know that depreciation can be a valuable tool to reduce your tax liability. Depreciation is the gradual write-off of the cost of a business asset over its useful life. The IRS has rules that dictate how much you can depreciate in any given year. However, there are situations where you can take a special depreciation allowance to accelerate your depreciation deductions. In this blog post, we’ll go over the details of the special depreciation allowance and how it can benefit your business.
Expenses Credit for Child & Dependent Part 2 Income Tax 2023
As the tax season is upon us, it’s essential to stay up-to-date on the latest changes and updates to tax laws and regulations. The IRS has made several changes to tax laws for the 2022 tax year, including changes to dependent care benefits, personal exemptions, and more. In this blog, we will dive into some of these changes and what they mean for taxpayers
Long Production Period Property, Aircraft, Excepted & Special Rules Income Tax 2023
To qualify for the 80% special depreciation allowance, non-commercial aircraft must meet the following requirements:
Expenses Credit for Child & Dependent Part 1 Income Tax 2023
The Child and Dependent Care Expenses credit is an important part of the income tax formula, which is used to calculate the tax liability of individuals. The credit is based on expenses related to the care of a qualifying child or dependent, and can be claimed on up to $3,000 of qualifying employment-related expenses for one qualifying person, or up to $6,000 for two or more qualifying persons.
How to Claim Child & Dependent Expenses Credit Flowchart Part 1 Tax 2023
The Child and Dependent Care Expenses Tax Credit is designed to help offset the cost of child or dependent care for working taxpayers. This credit can be a significant financial benefit, but it’s important to understand the rules and qualifications in order to determine whether you qualify. In this blog post, we will take a closer look at the details of the credit, as outlined in publication 503 for tax year 2022.