The New Qualifying Relative Rules for 2021

The IRS typically affords tax breaks to taxpayers with qualifying dependents to compensate for their additional costs. The most prevalent type of dependent is children, but qualifying relatives often include adults and other individuals in your household. However, your claimed dependents must pass the qualifying relative test to count. This guide covers the latest IRS […]

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Investing in Art and NFTs for Tax Deductions

For high net worth individuals, tax strategies and investing go hand-in-hand. If you’re not diligent about the tax consequences of your investments, you may owe the IRS far more than anticipated. As such, these wealthy individuals often ask our team about the potential tax savings of different investments. Recently, we’ve fielded questions about investing in […]

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Tax Brackets for Self-Employed Individuals in 2020

Tax season is approaching fast, so you should get focused on your taxes. Your taxable income will determine your final year-end tax bill. To determine taxable income, subtract your allowed deductions from your total income. Your adjusted gross income will include income from all sources including from your job, self-employed income, side hustles, and any […]

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IRS Schedule C Instructions For Independent Contractors

For independent contractors, filing taxes is a little more complicated. Contractors don’t have an employer, so they’re responsible for paying taxes and reporting their income. 1099 contractors must use IRS Form 1040 to report income. However, Form 1040 includes additional requirements for 1099 contractors. Specifically, you must report your business income and related expenses on […]

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Can Section 1231 Help You Save on Taxes?

Most business owners know the IRS taxes long-term capital gains at a lower rate than ordinary income. However, Section 1231 of the Internal Revenue Code offers an exception to this rule. This rule gives business owners the best of both worlds. When you sell Section 1231 property for a gain, you will get a more […]

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