Posts in Taxation
Taxes for AirBnB Rental Properties

Owners who list their Maryland property on AirBnB should know a major change in the tax laws for short-term occupancy taxes. The change took effect on June 1, 2019. AirBnB has noted the tax on its website. Many property owners fear that the mandatory occupancy tax will reduce the number of guests who book their property, but owners of hotels and other businesses already subject to state occupancy taxes were for the change.

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How Will my Cryptocurrency Sales Affect my Taxes?

The IRS views digital currency as property. Therefore, the applicable tax code for cryptocurrency is typically the portion of the code that relates to capital gains or losses. However, some transactions involving digital currency may be treated as income for the owner. Now that Bitcoin and other forms of digital currency have gained in popularity, and increased substantially in value, the IRS is interested in ensuring that taxpayers report cryptocurrency correctly.

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When Do I Need to File a Non-resident Tax Return?

Individuals who work or live in Maryland are typically subject to state taxes based on their residency status. Therefore, your residency status can have a significant impact on whether you owe state income taxes. If Maryland demands you file a tax return and pay state income taxes even though you were not a resident, contact a Maryland tax attorney to discuss your options for challenging the state’s claim of residency.

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Did the Tax Cuts and Jobs Act Kill My Boat Deduction?

The deductions you may take for interest on your boat loan has changed somewhat since the Tax Cuts and Jobs Act (TCJA), but the deductions have not been eliminated. Below is a brief discussion from Maryland tax attorney, Steve Thienel, of some changes in the tax reform bill that impacts interest deductions for a boat. If you follow the current rules in the Tax Cuts and Jobs Act, you may still benefit from certain deductions.

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Income Tax Planning for Musicians

As a musician, you have expenses that are unique to your industry. Utilizing the tax deductions available for musicians is essential to reducing your tax liability. This is especially true since some of the deductions musicians may have used in past tax years were eliminated with the passage of the Tax Cuts and Jobs Act.

In this article, we discuss several of the unique income tax planning issues for musicians and how musicians can take advantage of tax laws to reduce income tax liability.

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Two Ways to Save Thousands with the Home Office Deduction

Business owners who use a portion of their home for business may benefit from using the home office deduction when preparing their income taxes. Claiming a deduction for a home office often reduces tax liability. However, the IRS has strict guidelines for claiming a home office deduction on your tax return. A Maryland tax attorney can help you determine if you can claim a home office deduction and the best way to maximize tax benefits for this deduction.

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Can I Deduct my Business-Related Auto Expenses on my S-Corp Taxes?

If you use your personal vehicle for business, you may be able to deduct the business-related auto expenses on the S-Corp tax return while obtaining reimbursement for these expenses from the corporation.

However, because unreimbursed employee expenses are no longer permitted under the new tax bill, a corporate accountable reimbursement plan is used to maximize the tax benefits of using a personal vehicle for business use. A Maryland tax attorney provides guidance on many S-Corp tax matters that impact the company and your personal tax liability, including deducting auto-related expenses.

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Should My LLC be Taxed as an S-Corporation?

An LLC may elect how it wants to be taxed: as a sole proprietorship, partnership, S-Corp, or C-Corp. Depending on the situation, electing one income tax structure over another income tax structure for an LLC can provide important tax benefits for the company and the owner. Because tax law can be complicated, it's beneficial to discuss your concerns and needs with a Maryland business tax attorney before electing how your LLC should be treated  for tax purposes.

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Estate Planning Strategies Under the New Federal Tax Law

Several events should trigger a review of your estate plan, such as the birth of a child, a divorce, or the death of an heir. Another reason to review your estate plan is a change in the tax code. When Congress passed the Tax Cuts and Jobs Act (TCJA), I received numerous calls from clients with questions about how the changes to the federal tax code impacted their estate plans.

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5 Things You Didn't Know About the Client Entertainment Deduction in 2018

Many of the changes made by the Tax Cuts and Jobs Act of 2017 benefit businesses. However, some of the changes may make it more difficult for businesses to write off certain expenses. For example, changes in the entertainment deductions for 2018 may cost companies thousands of dollars, especially for companies who have a strong sales department that entertains clients and potential customers on a regular basis.

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What is the difference between a LLP & an LP?

Choosing the right business entity is an important phase in business formation. Each type of business entity has certain advantages and disadvantages for the partners. The type of business, the partners’ goals, and state laws factor into your decision whether to form an LLP or an LP. An experienced business formation attorney can help you determine whether an LP or an LLP is best for your needs and goals.

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The IRS Placed a Tax Levy on My Bank Account – What Are My Options?

A tax levy is a legal action that allows the IRS to legally take property in order to pay off a tax debt. As a result of IRS litigation and other actions, you could see your wages garnished, assets frozen, or even the seizure of your vehicles and real estate. This is not something that happens overnight though. The IRS must satisfy a number of requirements before can actually issue a levy.

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Business Tax Compliance - Is Your Company Compliant with Tax Filings?

For many companies, especially smaller businesses, the tax code is a large source of unnecessary frustration. While the individual tax code is complex enough, the reporting and filing burden on companies is even higher. In addition to the federal requirements, each state has its own tax code which includes its own tax forms, payment thresholds, filing deadlines, filing schedules, and payment thresholds, among other unique requirements and obligations. Business tax compliance can be a true nightmare.

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