Tax Laws

Did you know that there are several categories of income are not taxable in the eyes of the IRS? 

A lot of small businesses hire independent contractors to do projects that don't require a regular full or part time employee. Part of that process can be have that person fill out a W-9 form so that you have the proper information to give them a 1099-NEC form the next January showing how much you paid them.

It's the season for tornadoes, hurricanes, flooding and devastating winds.  So, I thought it would be a good time to review the rules for taking money out of your retirement accounts to get you through the storms. 

Many provisions in the 2017 tax law are slated to expire after 2025. Donald Trump wants the 2017 law made permanent.

Kamala Harris is sticking with this pledge:

Crowdfunding has become a very popular way for individuals to raise capital. It typically involves funding a project or venture by raising contributions from a large number of people, typically through online crowdfunding sites. Crowdfunding campaigns fund a broad range of projects, from producing a product or new technology to supporting a charitable cause.  Those supporting a product using can buy the product at a reduced price.

The IRS can take the fun out of just about anything.  Case in point:  Last week, baseball phenom Shohei Ohtani became the first major league player to start the “50-50 club” by hitting 50 home runs and stealing 50 bases in a single season.   And when he did that, one lucky fan in Miami caught the 50th home run ball and walked away with it even though he had the opportunity to give it to the Dodgers. No one yet knows whether the lucky fan will keep the ball or sell it. Should he decide to sell it , it could be worth hundreds of thousands, or even more than a million dollars.

The IRS has set its sites on millions of people who enjoy gambling: the huge gap between tax collections and people reporting them on their tax returns. Those unreported winnings ad up to a whopping  $13.2 billion. 

Last week, a dozen GOP lawmakers introduced the Fair Tax Act of 2025. The bill proposes to abolish the IRS and repeal all personal and corporate income taxes, the death tax, gift tax, and payroll tax.

One of the more interesting questions I get now and then is "I heard that I can hire my kid and save on my taxes.  Is that true?" 

The answer to that is yes - IF you follow the IRS rules.   I think their is a better reason to hire your children, though.  It is the best education they can learn to prepare them for life after they move out of your house - from either an employee''s point of view or a business owner''s point of view or both. 

After doing people''s taxes for over two decades, one of the worst parts of it is when your client''s die and you have to help pick up the pieces.   It is sad that in so many households only one of the spouses does all the accounting and taxes. If that spouse dies first, time and again I have found that the remaining spouse has no clue where to even start to put all the financial pieces together again.