Tax & Accounting Insights for Irvine, CA. Expert Guidance from Bharmal CPAs
Can You Deduct Home Office Expense If You Didn’t Earn Any Income?
If you have no taxable income, should you claim the home-office tax deduction? Answer: yes. Even with no taxable income, you have two for-sure tax benefits from the home office, and you likely have a third benefit. By claiming your home office as your principal place of business when you have no business income for the year, or perhaps a [...]
Does Your Rental Income Qualify for the New 199A Credit?
The Tax Cuts and Jobs Act tax reform added new tax code Section 199A, which created a 20 percent tax deduction possibility for you if your rental property (a) has profits and (b) can qualify as a trade or business. As the law now stands, with rentals that achieve trade or business status, you win. Your business-status rental property creates [...]
What Should You Do If Your K-1 Does Not Include The Qualified Business Deduction?
Tax reform’s Section 199A deduction often confuses small-business owners and tax professionals alike. It’s quite possible you’ll get a Schedule K-1 from a business that omits the information you need to calculate your deduction. What do you do? You have a big problem. Without a properly completed Schedule K-1, your Section 199A deduction is a big fat $0. Best option: [...]
How the New Tax Laws Affect Loaning Your Company Money
Making loans to your corporation became more hazardous 33 years ago with the Tax Reform Act of 1986. But the new Tax Cuts and Jobs Act tax reform made things worse for tax years 2018 through 2025. If you operate your business as a corporation, you need to know how the rules apply when you loan money to your corporation. Imagine [...]
Reimburse Your Employees for Education and Training
As a small-business owner, you probably incur work-related education expenses from time to time. You may even decide to pursue an advanced degree, such as a Master of Business Administration (MBA). You likely want your employees to be on a path of continuous improvement. There’s much to know about how such business deductions work for both you and your employees. [...]
New Tax Cut and Jobs Act (TCJA)
The Tax Cuts and Jobs Act (TCJA) tax reform added an amazing limit on larger business losses that can attack you where it hurts—right in your cash flow. And this new law works in some unusual ways that can tax you even when you have no real income for the year. When you know how this ugly new rule works, [...]