Blog | WM. F. Horne & Company, PLLC

Article Highlights: 

• Primarily Business
• Primarily Vacation
• Special Circumstances
• Foreign Conventions, Seminars and Meetings
• Cruise Ships
• Spousal Travel Expenses

Note: effective for years 2018 through 2025, the Tax Cuts and Jobs Act of 2017 suspended the deduction of miscellaneous itemized expenses that must be reduced by 2% of the taxpayer’s adjusted gross income. Employee business expenses, including travel expenses, fall into this category. Therefore, this discussion only applies to self-employed individuals for years 2018-2025.

When a self-employed individual…

Article Highlights:

• Household Employee Definition
• Employee Control Factors
• Self-employed or Employee
• Withholding Requirements
• Reporting Requirements

Taxpayers often will hire an individual or firm to provide services at the taxpayer’s home. Because the IRS requires employers to withhold taxes for employees and issue them W-2s at the end of the year, the big question is whether or not that individual is a household employee.

Determining whether a household worker is considered an employee depends a great deal…

Article Highlights:

• Donor-Advised Fund
• Itemized or Standard Deductions
• Sponsoring Organizations
• Tax Benefits
• Bunching Strategy
• High Income Years
• Donating Appreciated Assets

If you would like to make a substantial tax-deductible charitable donation this year, but have the ability to spread the actual distribution of funds to specific charities over a number of years, a donor-advised fund (DAF) may fill that need. There are any number of reasons individuals choose DAFs, including making a substantial charitable donation in…

Article Highlights:

• For-Profit Businesses
• Not-for-Profit Businesses
• Nine Determining Factors
• Profit Presumption

Taxpayers are often confused by the differences in tax treatment between businesses that are entered into for profit and those that are not, commonly referred to as hobbies. Recent tax law changes have added to the confusion. The differences are:

Businesses Entered Into for Profit – For businesses entered into for profit, the profits are taxable, and losses are generally deductible against other…

Article Highlights:

• Nursing Homes
• Meals and Lodging
• Home Care
• Nursing Services
• Caregiver Agencies
• Household Employees

Because people are living longer now than ever before, many individuals are serving as care providers for loved ones (such as parents or spouses) who cannot live independently. Such individuals often have questions regarding the tax ramifications associated with the cost of such care. For these individuals, the cost of such care may be deductible as a medical expense.

Incapable…