Taxation

Going Broke from Estimated Tax Penalties? Five Tips to Keep You Out of Hot Water with the IRS

Going Broke from Estimated Tax Penalties? Five Tips to Keep You Out of Hot Water with the IRS

For taxpayers who do not pay taxes throughout the year or underpay, they may face a large tax penalty when they file their tax returns. If you are going broke paying estimated tax penalties, working with a Maryland tax attorney to identify problems with your estimated tax payments could help eliminate those penalties.

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

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.

Income Tax Planning for Musicians

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.

Two Ways to Save Thousands with the Home Office Deduction

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.

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

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.

Three Ways to Pull Money from Your IRA at Any Age - Without Getting Dinged

Three Ways to Pull Money from Your IRA at Any Age - Without Getting Dinged

Individual Retirement Accounts (IRAs) are used by many people to save for retirement because of the benefits of contributing to IRAs while you are working. However, if you want to access the money in your IRA before age 59 ½, you may owe taxes on the withdrawal, in addition to the hefty 10 percent penalty for early withdrawals.

Do You Owe Back Taxes? Here's What You Can Do To Get The IRS to Go Easy on You.

Do You Owe Back Taxes? Here's What You Can Do To Get The IRS to Go Easy on You.

Garnishments, seizures, and federal tax liens are just a few of the aggressive collection efforts the IRS may take to collect back taxes. A Maryland tax attorney can help you avoid aggressive tax collection efforts. Handling issues related to back taxes without legal counsel could cause the IRS being tougher on you than is necessary.

Should My LLC be Taxed as an S-Corporation?

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.

What Can a Tax Attorney Do For You?

What Can a Tax Attorney Do For You?

A Maryland tax attorney can do many things for clients. We are not only called upon when someone has a problem with the Internal Revenue Service (IRS) or other taxing authority. A tax attorney can help you with all matters related to personal and business taxes with two goals in mind – reducing your tax burden and preventing an audit.

Estate Planning Strategies Under the New Federal Tax Law

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.

Do You Know About the TCJA Reform Attack on IRA Recharacterizations?

Do You Know About the TCJA Reform Attack on IRA Recharacterizations?

A tax and retirement planning tool used by some individuals has been eliminated with the passage of the Tax Cuts and Jobs Act (TCJA). However, even though we may be losing an effective tax planning opportunity, all is not lost. There are still some ways to use IRA recharacterizations that comply with the TCJA. 

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

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.

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.

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

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.

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

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.

Top 4 Tax Mistakes Your Company is Probably Making

Top 4 Tax Mistakes Your Company is Probably Making

The signing of the Tax Cuts and Jobs Act the end of the year ushered in several changes to the US Tax Code. Even though tax day comes at around the same time each year, many companies still scramble to get everything in at the deadline since going through receipts, bank statements, and other documents can be a time-consuming and tedious affair. Proactive tax compliance can often make tax preparation a less-stressful affair. In addition, avoiding these four tax mistakes can save you time, money, and stress over the next few years.

Do I Have to Issue a 1099 to Independent Contractors I Paid Via Third-Party Vendor Services Like PayPal, Venmo or Wave?

Do I Have to Issue a 1099 to Independent Contractors I Paid Via Third-Party Vendor Services Like PayPal, Venmo or Wave?

For a business, regardless of the business entity or the size of the business, taxation is anarea in which even a small mistake can become very costly. Failure to properly account for payments to independent contractors can lead to steep penalties. However, penalties, interest, and additional taxes are not the only consequences a business owner should worry about when making a tax-related mistake. Business taxation mistakes can lead to expensive and time-consuming tax audits.

Sole Proprietorship or LLC – What is the Best Business Structure for Tax Purposes?

Sole Proprietorship or LLC – What is the Best Business Structure for Tax Purposes?

For anyone looking to start a business, one of the first steps involves choosing the business entity form. Popular options include sole proprietorships, limited liability companies (LLC), and corporations. Each entity type has different benefits and drawbacks, and there is no one “correct” choice. The best option is dependent on the business owner’s plans and appetite for risk and liability.

Changes In The New Tax Cuts And Jobs Act That Could Change The Way Small Businesses Operate

Changes In The New Tax Cuts And Jobs Act That Could Change The Way Small Businesses Operate

The sweeping tax reform bill known as the Tax Cuts and Jobs Act will overhaul the way the tax code treats businesses – whether small businesses or large multinational corporations. While it is not possible to gauge the exact ways different provisions will impact small businesses, it is very likely that the overall tax burden will be reduced for the majority of small businesses.

What Business Entity is Right for my Company?

What Business Entity is Right for my Company?

You came up with a great idea for a business. You might even have drafted a business plan.

Before you can move forward, one of the key questions that you need to decide, especially if you need to raise start-up capital, is what business entity to choose. Before you set up a structure, you must decide, what business entity is right for your company. A good business transaction lawyer can assist you in determining the right business entity before you make a costly mistake. Before you take that step, take a look at the pros and cons of some of the most common business entities out there.