Choosing a business entity—also known as a business structure—that fits really depends on how many owners are involved, how big your dreams are, and how you want to pay both yourself and Uncle Sam. Schedule a time to talk with us today! https://calendly.com/d/zyh-gdj-9qh/... Learn more at: http://whidbeycpa.com

ARE YOU RISKING AN AUDIT? The Inflation Reduction Act gives the IRS an additional $80 billion to spend over the next 10 years. With that money, the IRS promises that audits of taxpayers earning less than $400,000 per year will remain at historical levels and may even increase by as much 400 percent over their current levels. Schedule a time to talk with us today! https://calendly.com/d/zyh-gdj-9qh/... Learn more at: http://whidbeycpa.com

LOWER YOUR BUSINESS TAXES WITH FAMILY There are big dollar benefits to hiring your child. These go to Form 1040, Schedule C taxpayer and the husband-and-wife partnership because such businesses are exempt from FICA when they employ their children who are under the age of 18. No taxes to the child and tax savings to you. Yes, you are having your cake and eating it, too. Hiring your spouse to work as an employee in your business can save you big on taxes too. Hiring your spouse can result in substantial tax savings, if you pay your spouse solely, or mainly, with tax-free employee fringe benefits instead of taxable wages. The IRS doesn’t require you to pay your spouse any W-2 wages. The most valuable fringe benefit you can provide your spouse-employee is reimbursement for health insurance and uninsured medical expenses. You can accomplish this through a 105-HRA plan if your spouse is your sole employee, or through an ICHRA if you have multiple employees. Tax-free employee fringe benefits are not limited to health benefits—for example, you can provide certain education, life insurance, and working condition fringe benefits. More to consider regarding spouses: Having your profitable unincorporated husband-wife business classified as a partnership for federal tax purposes can lead to alarmingly big bills for Social Security and Medicare taxes. The good news is that you don’t have to sit still for that. Choosing one of the following three strategies, as discussed in this article, will save you some serious self-employment tax money: 1. Stop filing husband-wife partnership returns, and file as a sole proprietor or a single-member LLC if you live in a community property state. 2. Convert your husband-wife partnership to an S corporation. 3. Hire your spouse as an employee. Schedule a time to talk with us today! https://calendly.com/d/zyh-gdj-9qh/... Learn more at: http://whidbeycpa.com

PAYING FOR COLLEGE: TAX-SMART STRATEGIES Many people know about 529 plans, but there are other creative ways to pay for your children's college. Did you know you can pay your college student for a one-time job that is not subject to self-employment taxes? Ask us how: https://calendly.com/d/zyh-gdj-9qh/... Learn more at: www.whidbeycpa.com

CHILD IRA TAX STRATEGY Taxpayers with minor children who have earned income can take advantage of IRA contributions for their children. The child or the child’s parent can make contributions to the IRA up to the child’s earned income or the individual IRA limitations. To get the most out of this strategy schedule today: https://calendly.com/d/zyh-gdj-9qh/... Learn more at http://whidbeycpa.com

CHARITABLE GIVING Change your Required Minimum Distribution (RMA) from your IRA to a Qualified Charitable Distribution (QCD). The donated money escapes income taxes and doesn’t count as adjusted gross income, and it doesn’t bump up against the 50%-of-AGI ceiling that applies to cash donations. Donate to your church or charity using your business. As a business owner, you can make a few modifications and convert your church, school, and other 501(c)(3) donations to a different type of deduction—an ordinary business expense— which increases the tax savings that land in your pocket year after year. Consider a Donor-Advised Fund, which has greatly increased over the past few years, with over one million donor-advised fund accounts as of 2020. With a donor-advised fund, you make a charitable gift of cash or property to an account maintained by the fund. The fund—not you—owns and controls the assets in the account. But you control to whom and when the fund disburses the money. https://calendly.com/d/zyh-gdj-9qh/... Learn more at www.whidbeycpa.com

Looking to purchase a new electric or fuel cell vehicle with your tax refund? The IRS announced new guidance for the Clean Vehicle Credit, clarifying the critical mineral and battery component requirements in proposed regulations. To get the most out of this credit let’s talk – schedule today: https://calendly.com/d/zyh-gdj-9qh/... Learn more at http://whidbeycpa.com

SEP IRA vs Solo 401(k): Which Should You Choose? If you’re a business owner with no employees there is a right answer. Let’s talk – schedule a time today: https://calendly.com/d/zyh-gdj-9qh/... Learn more at http://whidbeycpa.com

Are you benefitting from the Short-Term Rental Loophole? Let talk: https://calendly.com/d/zyh-gdj-9qh/... Learn more at whidbeycpa.com

Solo 401k can be your best retirement option. Let’s talk about your plan: https://calendly.com/d/zyh-gdj-9qh/...

If you own a business, then you need a tax plan. Let’s talk – schedule here: https://calendly.com/d/zyh-gdj-9qh/...

Thinking about selling your home? GOOD NEWS - the federal income tax gain exclusion break for principal residence sales is still on the books, and it’s a potentially big deal for prospective sellers. If you’re unmarried, the exclusion can shelter up to $250,000 of home sale gain. If you’re married, it can shelter up to $500,000. Schedule a time to talk with us– https://tinyurl.com/4s4xvsht

WHAT’S NEW? Energy Efficient Home Improvement Credits The new law renamed the old Non-Business Energy Property Credit as the Energy Efficient Home Improvement Credit and greatly expanded it starting in 2023. The old credit contained a tiny $500 lifetime cap (yes, lifetime). Good news! Beginning in 2023, lifetime caps are gone. Instead, there is a $1,200 overall annual cap on the new credit, along with annual caps for certain types of improvements. This means you can perform energy efficiency projects over several years and collect the credit each year. The credit is non-refundable and lasts through 2032. Let’s talk – schedule here: https://calendly.com/d/zyh-gdj-9qh/...

Let’s eliminate commuting and make those trips from your home to your office deductible. The law gives you two ways: 1. Make a temporary business stop on the way to the office. 2. Establish a home office that qualifies as a principal office. Let’s talk - we can save you money on your taxes! Schedule with Daren at http://calendly.com/daren-dcatax or Scott at http://calendly.com/scottbaxter