Money

  • Tax Advantages of a Health Savings Account

    Are you looking for ways to save for retirement? Did you know? The Health Savings Account (HSA) is the only tax-advantaged account that gives you both: a tax deduction for the money you put in, and tax-free withdrawals What is a Health Savings Account (HSA)? The HSA is a tax-advantaged medical savings account similar to […]

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  • If I Hire My Kids, Can I Give Them Tax-Free Education Benefits?

    Yes! Potentially, in two different ways. Here’s how. Payments for Job-Related Education Your business can reimburse an employee for certain education expenses, and the reimbursements will be treated as tax-favored working condition fringe benefit payments. For the employee, that means the reimbursements are free of any federal income tax hit or federal employment tax hit. Nice! For […]

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  • Planning for Taxes on Real Estate

    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? Real Estate Dealer Status: is defined as someone who is involved in […]

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  • Tax Law Changes for Electric Vehicle Credits

    The qualified plug-in electric vehicle credit remains in place through December 31, 2022, but if you purchased a qualifying electric vehicle after August 16, 2022, it must have been assembled in North America. The credit maximum remains $7,500. A new clean vehicle tax credit takes effect in 2023. The maximum amount of the new credit […]

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  • $80 Billion to the IRS: What It Means for You

    For the business owner and tax practitioner, the most important part of the Inflation Reduction Act of 2022 was not the tax credit for flashy new electric cars. It was something much more basic: a long-term budget commitment to help the struggling, failing IRS. The Inflation Reduction Act invests an additional $80 billion in the […]

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  • Estate Planning Resolutions for 2023

    Thinking about what happens after you die can be an uncomfortable thing to consider. Oftentimes it’s easy to put-off getting your estate plan done because you’re not planning on passing away anytime soon. However, it’s so important to have a plan in place for when the unexpected occurs so that your family won’t be left […]

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  • Last Minute Tax Moves

    Here’s an easy question: Do you need more 2022 tax deductions? If yes, continue reading. Next easy question: Do you need a replacement business vehicle? If yes, you can simultaneously solve or mitigate the first problem (needing more deductions) and the second problem (needing a replacement vehicle) if you can get your replacement vehicle in […]

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  • Pass Through Entity Tax

    Maybe the least popular change brought about by the Tax Cuts and Jobs Act (TCJA) was a first-ever cap on the federal personal income tax deduction for state and local taxes. From 2018 through 2025, the TCJA caps itemized deductions for state income taxes (or general sales taxes if elected instead of income taxes), state […]

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  • Planning for Taxes on Real Estate

    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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  • Tax Advantages of a Health Savings Account

    Are you looking for ways to save for retirement?  Did you know? The Health Savings Account (HSA) is the only tax-advantaged account that gives you both: a tax deduction for the money you put in, and tax-free withdrawals. What is a Health Savings Account (HSA)? The HSA is a tax-advantaged medical savings account similar to an […]

    Read more

  • Planning for Taxes on Real Estate

    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? Real Estate Dealer Status: is defined as someone who is involved in real estate as […]

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  • Choosing the Right Legal Entity for Optimal Tax Strategy

    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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  • Highlights of 2022 Tax Season for Your 2021 Tax Return

    Highlights of a few key issues to watch for as you get ready to have your 2021 tax return prepared. Charitable contributions: Usually, if you choose to claim the standard deduction, you cannot deduct your charitable contributions. For 2021, if you don’t itemize deductions, you may deduct up to $300 ($600 if Married Filing Jointly) […]

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  • Grand Opening Celebration on January 13, 2022

    Temecula, California – We are excited to celebrate the grand opening of our new offices with our clients and community: The press and public are invited to the joint grand opening of Elite Tax Partners on January 13, 2022. The event will take place at 41951 Remington Avenue, Temecula, CA 92590. Guests will be treated […]

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  • Esther Phahla, CPA, Named 2020 Top 50 Women in Accounting

    Esther Phahla, President/CEO of Esther N. Phahla, CPA, A Professional Corporation in Temecula was selected as one of the 2020 Top 50 Women in Accounting by PRACTICE Ignition – celebrating all the amazing women who are driving advocacy, change and creating opportunities in the Accounting and Bookkeeping industry! “2020 was a year like no other. […]

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  • Tax Law Changes Amidst Tax Season

    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 […]

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  • COVID-19 Tax Relief Measures - Part 1 of 3

    The Coronavirus Aid, Relief, and Economic Security Act (CARES Act) made many temporary changes in the tax law. The new Consolidated Appropriations Act (CAA) adjusted some of these and left others to die on December 31, 2020.  Below are insights into some of the changes.  Borrow $100,000 from Your IRA and Pay It Back within […]

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  • Reasonable Compensation vs Distributions for S Corporations

    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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  • Mileage Log

    Do you have a mileage log that will survive an IRS audit? If so, good for you! If not, get ready to give up all (not some, but all) of your vehicle tax deductions for not just one year but three years, as you will see in this true story.   The story is about […]

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  • Are You Prepared for Tax Filing Season?

    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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  • Choosing the Right Legal Entity for Optimal Tax Strategy

    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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  • 7 Crucial Reminders Before You Take Out an EIDL

    Before borrowing any money, especially from the government, you need to remember to always read the documentation involved to be sure you know all the ins and outs to what you are agreeing to. This is even more important when borrowing through the Small Business Administration’s (SBA Economic Injury Disaster Loan (EIDL) program. The EIDL […]

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  • Last Minute Business Deductions for Tax Year 2020

    Here are seven powerful business tax deduction strategies that you can easily understand and implement before the end of 2020. 1.Prepay Expenses Using the IRS Safe Harbor – You just have to thank the IRS for its tax-deduction safe harbors. IRS regulations contain a safe-harbor rule that allows cash-basis taxpayers to prepay and deduct qualifying […]

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  • The Legislative Summit Will Address Issues Affecting Business

    The Temecula Valley Chamber of Commerce will host the 2020 Legislative Summit on December 1, 2020 from 8:00am-9:30am. It will be presented virtually as a Zoom webinar and there is no cost to attend. The Summit is the Chamber’s premier advocacy event with presentations by legislative and policy experts, as well as elected and appointed […]

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  • Why is Tax Planning Important?

    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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