Teaching Tax Flow

Quick Tip: What Is Depreciation Recapture? When you sell a depreciated asset, the IRS may require you to recapture depreciation as taxable income. Here’s how it works: ➡️ 1245 Property: Personal property (machinery/equipment) is recaptured at ordinary income rates. ➡️ 1250 Property: Real property is recaptured at a 25% rate. Key Considerations: ✔️ A 1031 exchange can defer depreciation recapture on real property. ✔️ If accelerated depreciation (e.g., Section 179) was taken on vehicles and usage drops below 50%, recapture applies. Learn more by watching the video and consult a tax professional to plan effectively! #DepreciationRecapture #TaxPlanning #RealEstateTaxes #IRS

Quick Tip: What is the QBI Deduction? The Qualified Business Income (QBI) deduction, introduced by the Tax Cuts and Jobs Act, offers a significant tax break for business owners. Here’s what you need to know: ➡️ Max Deduction: Up to 20% of net business income ➡️ Sources of Info: K-1s, brokerage statements, trusts, or estates ➡️ Phaseouts: Based on income and business type (SSTBs) ➡️ Where to Claim: On your personal tax return (Form 1040) To ensure you qualify and maximize your deduction, consult your tax professional and integrate QBI into your tax planning strategy. #QBIDeduction #TaxCutsAndJobsAct #BusinessTaxTips #TaxPlanning

We're truly humbled to share a milestone with you. The Teaching Tax Flow YouTube Channel has surpassed 1,000 views per week for the past 5 weeks. For many channels, this may not seem like a huge milestone, but in the world of tax planning and strategy—topics that aren’t exactly known for being “entertaining”—this is an achievement we’re incredibly proud of. A heartfelt thank you goes to John Tripolsky, our talented editor, who ensures each video is engaging, clear, and professionally polished. His attention to detail and creativity have played a significant role in helping us reach this milestone. We’ve also created several playlists to help viewers easily find content that fits their interests and needs. From tax tips for business owners to year-end planning strategies and maximizing deductions, there’s a playlist for everyone seeking to better understand and take control of their taxes. If you haven’t yet, we’d love for you to explore the channel and consider subscribing if you find the content helpful. Our mission is to empower viewers with the knowledge to make smarter tax decisions and build wealth. Visit the channel here: https://lnkd.in/eNNkSmNw Thank you to everyone who has supported us so far—this milestone wouldn’t have been possible without you. We’re excited to continue growing and sharing valuable insights with you. #TaxPlanning #TeachingTaxFlow #YouTubeMilestone #FinancialEducation #TaxTips #TaxStrategy #WealthBuilding #TaxPros #EducationalContent #SmallWinsBigImpact

Top 3 Tax Benefits of Owning a Primary Home #1 Mortgage Interest & Property Tax Deductions #2 Tax-Free Capital Gains #3 The Augusta Rule Owning a primary home comes with significant tax advantages! Let's break it down. Want more? Here's the full podcast discussion... https://bit.ly/3PkrD6y #Home #HomeOwnershipTaxBenefits #MortgageInterestDeduction #Section121Exclusion #AugustaRule #PrimaryResidence #TaxSavings #RealEstateTaxes #RealEstate #TaxPlanning #IRS #FinancialPlanning #Taxes #Finance

Quick Tip: Employee vs. Contractor Classification Classifying labor as a contractor or employee is critical to avoid IRS penalties. The IRS evaluates three key factors: ➡️ Behavioral Control: Who decides how the work is done and sets the schedule? ➡️ Financial Control: Does the worker have other clients or operate as a business? ➡️ Relationship: Are there formal agreements, autonomy, or other clients? Understanding these distinctions helps businesses stay compliant and protect their bottom line. Watch the video to learn more! #ContractorVsEmployee #TaxCompliance #BusinessTaxTips #IRSRules

Amending Federal Tax Returns: When and How to Use Form 1040-X Mistakes happen, even on tax returns! The good news is, the IRS allows taxpayers to correct errors or make updates to their previously filed federal income tax returns using Form 1040-X. Whether you’ve discovered unclaimed deductions, overlooked income, or received new tax documents, an amendment could help ensure your tax situation is accurate and complete. Here’s what you need to know: Eligibility: You can amend your return for up to three years from the original filing date or two years from when you paid the tax, whichever is later. Common Reasons to File: Amending is often necessary to correct filing status, dependents, income, or deductions and credits that were missed. Electronic Filing Available: Form 1040-X can now be filed electronically for certain tax years, making the process faster and more efficient. Supporting Documents: Be sure to include any relevant forms or schedules supporting the changes you're making. Processing Time: Amendments typically take up to 16 weeks to process, so patience is key. Correcting your tax return can save money or prevent potential issues down the line. Consult a trusted tax professional if you're unsure about the process. #TaxTips #AmendedTaxReturn #Form1040X #IRSUpdates #TaxPlanning #TaxSeason #FinancialTips #TaxHelp https://lnkd.in/exxhGGXt

A little behind the curtain of our #podcast production. If you missed it - here's the latest episode where we talk LLCs > https://bit.ly/4g3bvkL

Secure 2.0 Act: Key Highlights You Need to Know The Secure 2.0 Act is transforming retirement planning with new provisions aimed at making saving for the future more accessible and flexible. Here are some of the most impactful changes: Automatic Enrollment: Starting in 2025, many new employer-sponsored retirement plans will automatically enroll employees, ensuring more individuals start saving early. Catch-Up Contributions: For individuals aged 50+, the catch-up contribution limits for 401(k) and similar plans are increasing. Starting in 2025, those aged 60-63 can contribute an additional $10,000 annually, indexed for inflation. Student Loan Matching: Employers can now match student loan payments with contributions to retirement accounts, helping young professionals build their retirement savings while paying off debt. Roth IRA Flexibility: Secure 2.0 eliminates the RMD (Required Minimum Distribution) for Roth accounts in employer-sponsored plans starting in 2024, enhancing Roth IRA benefits. Emergency Savings Options: Participants can withdraw up to $1,000 annually from their retirement accounts for emergency expenses without penalty. Small Business Incentives: Tax credits for small businesses offering retirement plans have increased, making it easier for them to provide benefits to employees. These updates are game-changers for retirement planning, offering individuals and businesses more opportunities to secure their financial future. #RetirementPlanning #SecureAct #FinancialPlanning #401k #RothIRA #TaxPlanning #RetirementSavings #FinancialFreedom #SmallBusiness #CatchUpContributions #StudentLoans #TaxCredits #FuturePlanning #WealthManagement #EmergencySavings #RetirementStrategy

💡 Tax Tip Tuesday: Should I Be an LLC? This week, we’re tackling a hot question for entrepreneurs and business owners: Is forming an LLC right for me? 🤔 In our latest podcast episode, we break down: ✅ When an LLC makes sense (and when it doesn’t!) ✅ Tax benefits and implications of LLCs ✅ Common mistakes to avoid when setting one up 🎧 Tune in to the full episode here: https://bit.ly/3ZnDOVk Get clarity on this — because your business structure can shape your financial future (and provide or avoid possible unwanted headaches + expenses). #TaxTipTuesday #LLCFormation #Entrepreneurship #TaxStrategy #SmallBusinessSuccess

Questions about S-Corps? Just give him a whiteboard. #Taxes #BrainAtWork #Education