Potpourri of Tax Topics

/Potpourri of Tax Topics

Do I Lose the Tax Deduction if I Don’t Issue a 1099?

By | November 6th, 2019|Categories: Potpourri of Tax Topics|

Question: if I don't issue a contractor a 1099-MISC for their work, will I lose the ability to take a tax deduction for that payment on my business tax return? Answer: NO!!! But sometimes IRS auditors will try to take this position. Discussion There are two separate issues here. One is the ability to take a [...]

S-Corporation Loans from Shareholders, Or “My Dentist Told Me”

By | October 23rd, 2019|Categories: Potpourri of Tax Topics|

Last fall I was meeting with a prospective client who was starting a small business. The business had just $10,000 of income in 2018, and would maybe have $30,000 of income in 2019. She was thinking about making her business an S-corporation because her dentist had told her about "these great tax strategies where you put [...]

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Things I Wish Clients Understood: Taxes Are Hard and Sometimes I Need to Just Get Away

By | August 5th, 2019|Categories: Potpourri of Tax Topics|

This is a followup to the post I wrote last week about trends I see in the tax field and in dealing with clients. Warning, this is a cynical ... but honest, post. I have talked to tax pros who tell me they appreciate what I have written on this subject and they thank me and [...]

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Trends I Am Noticing in the Tax Field

By | July 22nd, 2019|Categories: Potpourri of Tax Topics|

I can't believe it's been 6 months since I last blogged. Tax season hit, various things happened in my life, I didn't have time to write articles, and now here we are. This is a practice-management topic: things I am noticing in dealing with clients, and other trends I am noticing in this business now that [...]

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Glossary: Form 1099-C

By | January 16th, 2019|Categories: Potpourri of Tax Topics|

Form 1099-C is a form used by lenders to report canceled debt to the IRS. Canceled debt is often taxable to the recipient, though the tax code contains a number of "outs" that can allow the recipient to avoid taxation. Examples of those outs include when the taxpayer is insolvent, or foreclosures on a taxpayer's primary [...]

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