Tax & Accounting Insights for Irvine, CA. Expert Guidance from Bharmal CPAs
Make Sure To File Your 1099’s To Avoid Potential Penalties
Make Sure To File Your 1099's To Avoid Potential Penalties Imagine this: you didn’t issue Form 1099s to your contractors. Now, the IRS is auditing your tax return, and the auditor claims you lose your deductions because you didn’t issue the Form 1099s. Is this correct? No. IRS auditors often make this claim, but they are incorrect. There is no [...]
9 Insights on the New Individual Coverage HRS for Small Business
9 Insights on the New Individual Coverage HRS for Small Business The new individual coverage HRA (ICHRA) has much to offer a small business (businesses with fewer than 50 employees). Here are nine insights into the new ICHRA. Insight 1. Application of the Class Size Rule The class size requirement applies only if you (a) offer a traditional group [...]
2019 Last-Minute Vehicle Purchases To Save on Taxes
2019 Last-Minute Vehicle Purchases To Save on Taxes Here’s an easy question: Do you need more 2019 tax deductions? If yes, continue on. Next easy question: Do you need a replacement business vehicle? If yes, you can simultaneously solve or mitigate both the first problem (needing more deductions) and the second problem (needing a replacement vehicle), but you need to [...]
2019 Last Minute Tax Planning for Your Family
2019 Last Minute Tax Planning for Your Family If you are thinking of getting married or divorced, you need to consider December 31, 2019, in your tax planning. Here’s another planning question: Do you give money to family or friends (other than your children who are subject to the kiddie tax)? If so, you need to consider the zero-taxes planning [...]
Make the RMD From Your Traditional IRA Tax-Free
Make the RMD From Your Traditional IRA Tax-Free Once you turn age 70 1/2, the tax code mandates that you withdraw a tax code–defined required minimum distribution (RMD) from your traditional IRA. But by using the RMD or other IRA distribution with a qualified charitable distribution (QCD), you can eliminate the RMD tax bite, possibly reduce your Medicare premiums [...]
Can You Deduct Assisted Living Expenses?
Can You Deduct Assisted Living Expenses? Watch your wallet: the median cost in 2018 for an assisted living facility was $48,000 and over $100,000 for nursing home care. If you could deduct these expenses, you’d substantially reduce your income tax liability—possibility down to $0—and dramatically reduce your financial burden from these costs. As you might expect, the rules are complicated [...]