Author: Crystal Stranger JD, EA, NTPI Fellow
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Leveraging Tax-Free Rental Income With the Augusta Rule
The Augusta Rule, rooted in Internal Revenue Code §280A(g), offers a compelling tax-saving opportunity. If properly applied, it allows taxpayers to rent their primary residence for fewer than 15 days per year and exclude the rental income from their taxable income. However, utilizing this rule without running afoul of tax laws requires a deep understanding…
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2025 Tax Calendar Infographic
Tax season is here, and staying organized and informed is crucial to avoid costly penalties for your startup. To help you navigate the year ahead, we’ve created a comprehensive infographic highlighting the key 2025 tax deadlines for startups. Whether you’re filing forms for employees and contractors, preparing to make entity elections, or submitting returns for…
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Crystal Stranger Honored as a 2024 Top Presenter and Tax Educator of the Year
I’m thrilled and deeply honored to share some exciting news! This year, I’ve been recognized as a 2024 Top Presenter by CPAacademy.org and awarded the MyCPE Excellence Award in the Tax Educators category. These accolades are humbling and serve as a wonderful reminder of the impact that sharing knowledge can have within our professional community.…
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Penalties of Not Filing Forms K-2 and K-3
Over the years, partnership taxation has become a tangled web of compliance requirements, especially for partnerships with foreign partners. While Forms K-2 and K-3 have garnered much attention due to their complexity, they’re not the only essential filings. Forms 8804 and 8805 also play a critical role in ensuring that partnerships meet their U.S. tax…
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Is Your Foreign LTD or LLC Actually a Foreign Corporation to the IRS?
When starting a business, determining its tax classification for U.S. income tax purposes is one of the most critical decisions. This classification not only dictates how the entity is taxed but also affects compliance and long-term financial strategy. Business entities can generally be classified as flow-through entities or corporations: Among corporations, some are automatically classified…
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Why Roth IRA Conversions Are Rarely a Good Idea
Roth IRA conversions are a topic that often sparks heated debate among tax professionals and financial advisors. The idea behind a Roth conversion is simple: you move money from a traditional IRA (or other tax-deferred retirement account) to a Roth IRA, pay taxes on that amount now, and then enjoy tax-free withdrawals in retirement. However,…
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Form 1099 Filing Guide for 2025
Filing 1099 forms can feel overwhelming, especially with the tight deadlines and endless stream of rule changes introduced each year. For example, for the 2024 tax year, which is filed in early 2025, the IRS recently rolled out their updated the Form 1099-K filing thresholds, and it’s essential to understand these new rules along with…
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How to Get IRS Tax Penalty Relief For Your Business
When dealing with a tax debt, many taxpayers focus solely on the initial balance. However, the overall amount owed can be significantly higher due to penalties and interest that accrue over time. These penalties can quickly add up, creating a financial burden. For many, tax debt arises from unexpected life events, such as a job…
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Monetizing Tax Credits for Tax-Exempt Entities
The new Final Regulations released by the IRS give a way for Elective Payment Elections to open the door for tax-exempt entities to partner with taxable entities in innovative ways. This also allows for new funding opportunities for projects that generate tax credits. By opting out of Subchapter K and leveraging Section 6417, these organizations…
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Want your Form 5471 More Complicated?
Check out the new PTEP rules The release of the IRS’s proposed regulations on Previously Taxed Earnings and Profits (PTEP) under Sections 959 and 961 is nothing short of monumental for international tax practitioners and U.S. shareholders of Controlled Foreign Corporations (CFCs) who have to file the already time consuming and expensive Form 5471. Published…