Readers of this blog may remember a post from about two months ago titled “Cryptocurrency and the IRS” (https://www.taxplanning.com/single-post/2019/09/12/Cryptocurrency-and-the-IRS). The IRS must be paying attention, because they recently released some guidance and frequently asked questions (FAQs) on cryptocurrency. Under the guidelines, a taxpayer does not have gross income from a “hard fork” of the taxpayer’s cryptocurrency if the taxpayer does not receive units of a new

A series limited liability company is a limited liability company that is allowed to form multiple “series” that are shielded from liability against other series. For example, imagine a tree. The trunk of that tree is the main LLC that is formed, often referred to as the “parent LLC” or “umbrella LLC”. The branches of the tree are the series formed as entities that are separate from each other and only connected via the main LLC. The series LLCs are beneficial because they ar

Any corporation or company formed with the Secretary of State should keep a corporate record book. While there are no federal laws requiring a corporate record book, the IRS may inquire about one in the event of a company audit. Illinois, Florida, Washington, Oregon, California, and Delaware either specifically require or strongly encourage an up-to-date corporate record book. Even if your state does not have a corporate record book requirement, failing to do could open yours

The first step to determining whether your clothes can be used as deduction is to figure out whether your clothes are also suitable for other uses other than work. For example, the IRS has repeatedly said that a suit cannot be deducted as part of a uniform because it has other uses. Just because an anchorwoman or attorney bought the suit exclusively work, it could also be used for everyday wear or events such as a wedding, court, bar mitzvah, etc. However, the IRS has accepte

An intended consequence of the TCJA is that the combined tax liability of a married couple may be higher or lower than the combined tax burden if they had remained single. If their burden is lower, it is considered a marriage bonus. However, if their burden is greater than before, it is considered a marriage penalty. Many variables can go into whether how a marriage will affect someone’s tax burden such as combined income, whether or not the incomes are similar, or the number

First off, congrats! Beginning your own business is an exciting and rewarding experience. But now, let’s get down to business (pun intended). Luckily, the IRS has put together a suggested list of what needs done with regards to federal taxes in order to prepare for your opening day. To begin, you should register for an FEIN (federal employer identification number). This is the number used to identify your business with the IRS and if you choose to obtain funding from a financ