What is a 401(k) Plan?

401(k) plans let you and your employees defer current income into the plan. You can matchyour employees’ deferrals make discretionary profit-sharing contributions or both. These may be your best choice if you want to let your employees fund the bulk of their own accounts: Some highlights: 1. You can defer up to 100% of your… Read More

Harvest Tax Losses on Bitcoin and other Cryptocurrency

Here’s something to know about cryptocurrencies. Because cryptocurrencies are classified as “property” rather than as securities, the wash-sale rule does not apply if you sell a cryptocurrency holding for a loss and acquire the same cryptocurrency before or after the loss sale. You just have a garden-variety short-term or long-term capital loss depending on your… Read More

Deduct 100 Percent of Your Business Meals under New Rules

Since 1986, lawmakers have limited business meal deductions: first to 80 percent, and then to 50 percent (unless an exception applies). But on December 27, 2020, in an effort to help the restaurant industry due to the COVID-19 pandemic, lawmakers enacted a new, temporary 100 percent business meal deduction for calendar years 2021 and 2022.… Read More

Secrets to IRS Penalty Forgiveness Using Reasonable Cause

The IRS can waive penalties it assessed against you or your business if there was “reasonable cause” for your actions. The IRS permits reasonable cause penalty relief for penalties arising in three broad categories: Filing of returns Payment of tax Accuracy of information Contrary to what you might think, the term “reasonable cause” is a… Read More