When you first see that 21 percent tax rate for the C corporation, you have to think that this could be the choice of entity for your business operation. Further, when you find yourself in the out-of-favor group for the 20 percent deduction, you naturally gravitate to thinking about the C corporation, perhaps as a means of getting even. Let’s [...]

Does your rental property activity meet the definition of a trade or business activity? If yes, your rentals produce the best possible tax benefits. In general, you report your rental properties on Schedule E of your tax return. When your activity rises to the level of a business, you continue to report the rentals on Schedule E, but with the [...]

The office-in-the-home deduction produces good-to-excellent cash benefits when it eliminates commuting mileage. That’s the result you achieve when you claim an administrative office in your home. To qualify for the home-office deduction, you must use the office exclusively for the business or businesses for which you are claiming the deduction. Your ability to qualify for the office-in-the-home deduction is straightforward [...]

The IRS has ruled that you “may deduct daily transportation expenses incurred in going between your residence and a temporary work location outside the metropolitan area where you live and normally work.” In this favorable ruling, you find two possible impediments: Temporary work location Metropolitan area Temporary Work Location The “temporary work location” is a location where you realistically expect [...]