Tax & Accounting Insights for Irvine, CA. Expert Guidance from Bharmal CPAs
Calculating Your Tax Deduction on Qualified Business Income
As you know, new tax code Section 199A offers a 20 percent tax deduction on your qualified business income—if you qualify for the deduction. The mechanics of the calculations can be daunting. But we found a nifty and very easy-to-use calculator at the Bradford Tax Institute. To use the calculator, simply click here.
Protecting Your Business: Legally, Physically and Digitally
From the solopreneur to multi-million-dollar corporations, businesses of every size face risks: legal, physical, and digital. Self-protection can seem bewildering. We’ve broken down ten areas of concern and offered advice that can help you significantly reduce risk and put your business on more confident, secure footing. Make Work a Safe Space: Strive to make the workplace you’ve created supportive of [...]
Business Tax Tips That Could Save You Thousands
We have worked with many entrepreneurs like you over the years. We find that the majority of our clients strive to run their business like a well oiled machine. We also know that they want to legally minimize their tax burden while reducing any exposure to an IRS audit. What follows are several tax tips that could save you from [...]
Hobby Income Versus Business Income
The tax law has mistreated hobbies for a long time. But the most recent tax reform brings an end to this topic. This means you will need to focus on making your activity a business and not a hobby. Under both prior law and the new law after the recent tax reform, your activity is either a business (for profit) [...]
S Corporation or Sole Proprietor?
Tax reform created a new 20 percent tax deduction for select pass-through entities. Will your business operation create the 20 percent tax deduction for you? If not, and if that is due to too much income and a lack of (a) wages and/or (b) depreciable property, a switch to the S corporation as your choice of business entity may produce [...]
Who Qualifies for Tax Credits?
We love tax credits because they help to reduce the taxes our client has to pay Uncle Sam. The two main types of credits that can reduce your tax bill is the refundable tax credit and the non-refundable tax credit. Before delving into this topic, let's describe these two credits. A refundable tax credit is a credit that can reduce [...]