Adam’s Tax Blog

Here are three tax breaks for small businesses to consider. 1. Claim bonus depreciation or a Section 179 deduction for asset additions Under current law, 100% first-year bonus depreciation is available for qualified new and used property acquired and placed into...

As the holidays and the end of the year approaches, many people are thinking of making gifts of cash or stock to their loved ones. By properly using the annual exclusion, gifts to family members and loved ones can reduce the size of your taxable estate, without...

A business may be able to claim a federal income tax deduction for a loss due to theft. But does embezzlement count as theft? In most cases it does but you’ll have to substantiate the loss. A recent U.S. Tax Court decision illustrates how that’s sometimes difficult to...

In recent weeks, some Americans have been victimized by hurricanes, severe storms, flooding, wildfires, and other disasters. No matter where you live, unexpected disasters may cause damage to your home or personal property. Before the Tax Cuts and Jobs Act (TCJA),...

In order to prepare for a business audit, an IRS examiner generally does research about the industry and issues on the taxpayer’s return. Examiners may use IRS “Audit Techniques Guides (ATGs).” A little-known secret is these guides are available to the public via the...

Employer-provided life insurance is a coveted fringe benefit. However, if group term life insurance is part of your benefit package, and the coverage is higher than $50,000, there may be undesirable income tax implications. Tax on income you don’t receive The first...

If you’re getting a divorce and you’re a business owner, tax issues can complicate matters. In many cases your business ownership interest is one of your biggest personal assets, and your marital property will include all or part of it. Tax-free property transfers You...

There may be a tax-advantaged way for people to save for the needs of family members with disabilities — without them losing eligibility for government benefits to which they’re entitled. It can be done though an Achieving a Better Life Experience (ABLE) account,...

What if you decide, or are asked, to guarantee a loan to your corporation? Before agreeing to act as a guarantor, endorser, or indemnitor of a debt obligation of your closely held corporation, you should be aware of the possible tax consequences. If your corporation...

If your child is fortunate enough to be awarded a scholarship, you may wonder about the tax implications. Fortunately, scholarships (and fellowships) are generally tax free for students at elementary, middle and high schools, as well as those attending college,...

If your business receives large amounts of cash or cash equivalents, you may be required to report these transactions to the IRS. What are the requirements? Each person who, in the course of operating a trade or business, receives more than $10,000 in cash in one...

Maybe you are launching a new business and want to know your options for setting it up. Or, perhaps you operate your small business as a sole proprietorship and want to form a limited liability company (LLC) to protect your assets. Here are the basics of operating as...