Qualified Business Income Deduction

What is the Qualified Business Income (QBI) deduction? The QBI deduction is one of the most important deductions for business owners to be aware of.  It was created as part of the 2017 Tax Cut and Jobs Act, and essentially provides a 20% deduction on all business...

Home Office Deduction

One of the tax deductions that causes the most confusion (and worry) is the home office deduction.  Are you eligible for it? Who Can Claim It To claim the home-office deduction, you must be self-employed. If you work for an employer and currently working from home,...

S-Corp Conversions

Using an S-Corp to Lower Your Taxes If you’re a small business owner, you’re well aware of the pain of self-employment taxes and how much they can take out of your pocket.  (And if you’re not yet aware, you’re in for a rude awakening next April.)  Converting an S-Corp...

Dividend Taxation

How are dividends taxed? Dividends are treated in one of two ways.  Ordinary dividends are treated just like any other income, such as salary your job.  In that case, they’re taxed at whatever your ordinary tax rate is.  They could also be treated as qualified, which...

Renting Out Part of Your Home

What are the tax issues when I rent out part of my home? When most people think about ‘rental properties’, they picture buying a small house or condo and collecting rent from a tenant.  The tax issues with doing that are relatively straightforward: you just keep track...

1031 Exchanges

A 1031 Exchange, also called a ‘Like Kind’ or ‘Starker Exchange’, involves the owner of one investment property exchanging it for a different investment property.  Because this is treated as an exchange, and not a sale, there are no taxes due on the transaction. Why...