F&E Professional Services LLC

🚨S-Corps are great, especially to those who want to avoid paying too much payroll taxes but rental income isn't subject to payroll taxes, so paying the extra costs that come with S-Corps is not worth it!

🚨Contribution of property, sales or even liquidation of interest in S-Corps trigger taxable event's that you can avoid, and S-Corps do not receive step-up basis upon deaths of shareholders.

❗This may not apply to all Real Estate Investors, and may sound confusing! Contact us and we will explain everything in detail:

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🔥Electing S-Corporation status can be are a great tax strategy to those who will benefit from it, but not everyone will benefit...

📝Some Pros & Cons:

Pros:
✅Can lower your Payroll Taxes (F**A)
✅Can pay dividends to employees
✅Passthrough Taxation
✅Cash Method of Accounting is allowed
✅Heightened credibility

Cons:
❌More expensive to create and maintain
❌Stock ownership restrictions
❌Taxable Fringe Benefits
❌Not favorable for real estate investing

Interested to find out more? Contact us:

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🔥 This is a great way to lower your business tax liability.

To use this deduction:

✏ You must regularly use your home office exclusively for conducting business activities
✏ Your home office must be your principal place of business
✏ You can NOT be a w2 worker, even if you worked from home. This deductions only applies to self-employed, independent contractors etc...

❗ Interested in more tips? Contact use for a free consultation:

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🔥The capitalization rate is used to compare different investment opportunities. For example, if all else equal, a property with an 8% cap rate versus another with a 5% cap rate, an investor is most likely to focus on the property with an 8% cap rate.

📝CAP rates will differ from location and risk. What is considered a good cap rate in a large city may not be the same in the outskirts where it is less populated. The lower the risk of the investment, the lower your cap rate (return) will be.

📝In general, 5%-10% is considered to be a good CAP rate. Also, 3% above your mortgage interest rate will give you good cash flow (in general)

❗This is a very basic introductions, there are CAP rate models that go into much more detail to come up with the calculations.

Interested to find out more? Contact us:

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🔥 You've all heard about making money while sleeping! This is it, Passive income❗

📝 Passive income is a great way to be more financially stable while not relying on a paycheck.

Contact us to learn all about passive activities, At-risk rules, passive losses and much more!

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🔥A great tax planning tip to lower your overall tax liability and keep more money in your pocket 💸

📝This $25k allowance is reduced by 50% of each dollar in excess of $100k of Adjusted Gross Income (AGI), therefore it phases out completely by $150k AGI.

Contact us to see if you qualify:

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❗ Previously allowed at 50%! Now the temporary exception allows a 100% deduction for food or beverages from restaurants, as long as the expense is paid or incurred in 2021 or 2022.

❌ This does not include businesses that primarily sell pre-packaged goods not for immediate consumption, such as grocery stores and convenience stores.

Contact us at:

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🔥 Pay kids up to the standard deduction without having to pay payroll taxes ❗

Must be:

✏ A Sole Prop or;
✏ LLC (Single member or Husband and Spouse owned)
✏ Genuine work (Paperwork, answering calls etc...)

If your business is set up as an S or a C corporation, or as a partnership with other non-parent partners, the IRS says you have to withhold payroll taxes. There is a loophole around this!!!

Contact us to find out more:

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😼 ”I didn’t choose Accounting, Accounting chose me”

This is our offices best consultant. For all your accounting and business needs, she’ll be there to assist you❗️

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💰 The benefits of living in a no-income-tax state are obvious. You get to keep more of your paycheck, and that’s always a win❗

Unfortunately, depending on your financial situation and lifestyle, not everyone may benefit as you may spend more on other taxes. Plus, you might receive fewer or lower-quality public services, like public schools.

Interested in finding out more❓ Talk to a Tax Pro ✅:

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🔥 Most eligible people already received the full amount they are entitled to receive. Anyone who did not receive the full amount they are entitled to should review the payment information to determine whether they should claim the Recovery Rebate Credit for tax year 2021.

❗ For example, parents of a child born in 2021 – or parents and guardians who added a new qualifying dependent to their family in 2021 – did not receive a third-round Economic Impact Payment for that dependent and may be eligible to receive up to $1,400 for the dependent by claiming the Recovery Rebate Credit.

Contact us for more info:

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🔥 The 1099-NEC is now used to report independent contractor income.

But the 1099-MISC form is still around, it’s just used to report miscellaneous income such as rent or payments to an attorney, etc..

Due Dates for the 1099's are:

🗓️ 1099 MISC - March 1 if filed by paper, March 31 if filed electronically

🗓️ 1099 NEC - January 31 in the year following the applicable tax year

Contact us for any additional question:

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