Tax Season Tips

Generally, a current business deduction is allowed for the cost of repairs and maintenance incurred during the year.

For tax years 2018 through 2025, you may be able to deduct up to 20% of qualified business income (QBI) from each of your qualified trades or businesses, including those operated through a sole proprietorship, or a pass-through entity, such as a partnership, LLC, or S corporation.

Rental income includes any payment received for the use or occupancy of property. In addition to normal rent payments, the following items are reported as rental income.

Which records should you keep? You should keep information that you and the IRS need to determine your correct tax. Everyone should keep the following records.

If you spend significant time in activities related to real estate, you may qualify as a “real estate professional,” which can provide tax benefits.

Farmers can deduct expenses of operating a car or truck used in a farming operation.

An employer may reimburse you for travel and meal expenses incurred while performing services for the employer. The tax treatment of the reimbursement, including per diem allowances, depends on whether the employer has an “accountable plan” or a “nonaccountable plan.”

One of the advantages of operating your own business is hiring family members. However, employment tax requirements or family employees may vary from those that apply to other employees.

A worker’s status determines what taxes are paid and who is responsible for reporting and paying those taxes.