Author: Rick Kouns

The Internal Revenue Service (IRS) collects taxes on a pay-as-you go system, meaning taxes must be paid when income is earned.  For those who are small business owners or self-employed individuals whose income is not subject to withholding tax, you may have to pay the quarterly estimated taxes to avoid underpayment penalties and interest.   September… Continue reading 3Q Estimated Tax: Deadline and New Interest Rate! 

A business may sell one or some of its properties for several reasons. It can be for asset retirement, technology upgrading, or just possible cash inflows. Regardless of the reason, there are tax implications and IRS guidelines that must be observed in selling a business asset. The IRS rules differ based on the property category… Continue reading Let’s make a deal! Sale of Business property  

As per IRS (Internal Revenue Service), depreciation is a tax deduction that recovers the cost of your fixed assets over time as you use it for your business. It is also a way to gradually enjoy its relative tax benefit since depreciation also decreases your overall tax liability on your annual return. In this blog,… Continue reading Depreciation: Methods and MACRS 

As a rule, you must capitalize the costs of fixed assets, intangible assets, and major improvements in your balance sheet instead of claiming it as a full deduction in your tax return. However, this doesn’t mean that you won’t be able to recover the costs of your investments. You can still benefit from that tax… Continue reading Depreciation and Amortization: A Tax Deduction for Your Business 

Form 1099-MISC is part of the IRS 1099 series, a group of information returns used to report income that is not paid through a traditional paycheck. While many independent contractors are familiar with Form 1099-NEC, Form 1099-MISC is still widely used to report other types of miscellaneous income.  Understanding how Form 1099-MISC works—and how it differs… Continue reading What Is Form 1099-MISC? Miscellaneous Income Reporting for 1099 Contractors 

Many 1099 contractors, locum tenens physicians, and small business owners eventually ask whether electing S Corporation status could reduce their tax burden. An S Corp election can be a powerful tax strategy in the right situation, but it also comes with added rules, responsibilities, and costs.  This page explains what an S Corporation is, the potential benefits… Continue reading S Corp Election: Pros & Cons for 1099 Contractors and Small Business Owners

Selling real estate often triggers tax consequences, especially property owners who are independent contractors, self-employed professionals, or investors. Understanding how real estate capital gains work, and when exclusions apply, can help you plan ahead and avoid surprises at closing or tax time.  This page explains how capital gains on real estate are calculated, how different types of property are treated, and… Continue reading Real Estate Capital Gains: What Property Sellers Need to Know

If you work from home as a 1099 contractor, freelancer, or small business owner, you may already claim a home office deduction. However, many taxpayers overlook another opportunity: certain energy-efficient upgrades may qualify for federal residential energy tax credits, depending on when the improvements were installed.  The home office energy tax credit is not the same as a… Continue reading Home Office Energy Tax Credit Explained