On March 11, 2021, President Biden signed the American Rescue Plan Act into law. The bill includes many provisions that have major tax impacts for 2020 and 2021 tax returns. As a taxpayer be aware and understand which ones affect your 2020 tax returns and plan for 2021. Here are some major provisions: Unemployment As […]
Esther Phahla
Esther Phahla is a Certified Public Accountant and Certified Tax Coach in Temecula. She also holds a Masters of Science in Taxation. She is the Best Selling Co-Author of a Tax Planning book “Why Didn’t My CPA Tell Me That”. She can be reached at (951) 514-2652.
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An S corporation is a corporation that elects to pass its corporate income, losses, deductions and credits through to its shareholder(s). A shareholder of an S corporation reports the flow-through of income and losses on their personal tax returns and are assessed tax at their individual income tax rates. When a corporate officer performs services […]
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The IRS announced that tax season will start on Friday, February 12, 2021, when the tax agency will begin accepting and processing 2020 tax year returns. The February 12 start date for individual tax return filers allows the IRS time to do additional programming and testing of IRS systems following the recent tax law changes. […]
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Being a business owner comes with a number of substantial benefits: being your own boss, pursuing your passions, controlling the growth of the company. One benefit that’s often overlooked is the ability to use a business as a completely legal tax shelter. By taking advantage of tax strategies designed to protect business owners, you can […]
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With the end of the year fast approaching, it’s time to dissolve any inactive business to avoid having to pay extra fees and paperwork for 2021. When a business entity is no longer needed, has completed its business dealings, has completed its job in a foreign State, or even if it was never used for […]
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With the end of tax preparation season for calendar businesses and individuals, you either complied and filed by the September 15 and October 15 Extension deadline or are delinquent, regardless of your choice, the common discussion during this period has been: “How can I save on taxes?” Some people had favorable results, and some did […]
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There are 3 categories the IRS uses to describe real estate investors that can dramatically change the taxpayer’s tax liability, namely: Real Estate Dealer Status Real Estate Developer Status Real Estate Professional Status Do you know which one are you? 1. Real Estate Dealer Status: is defined as someone who is involved in real estate […]
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S Corporation Shareholder-Employee: Are You Paying Yourself Reasonable Compensation? An S corporation is a corporation that elects to pass its corporate income, losses, deductions and credits through to its shareholder(s). A shareholder of an S corporation reports the flow-through of income and losses on their personal tax returns and are assessed tax at their individual […]
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The IRS issued Notice 2020-18, Relief for Taxpayers Affected by Ongoing Coronavirus Disease 2019 Pandemic, which clarifies some provisions for extended tax returns: The due date for filing Federal income tax returns is automatically extended from April 15, 2020 to July 15, 2020. Taxpayers can also defer federal income tax payments due on April 15, […]
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A Form W-4, formerly known as “Employee’s Withholding Allowance Certificate”, is filled out by employees to tell employers how much tax to withhold from each paycheck. The employer uses the W-4 to calculate certain payroll taxes and remits the taxes to the IRS on the employee’s behalf. You’ll fill out a W-4 when you start […]