What is a depreciation tax shield?
In general, a tax shield is anything that reduces the taxable income for personal taxation or corporate taxation. Depreciation is considered a tax shield because depreciation expense reduces the company’s taxable income. When a company purchased a tangible asset, they are able to depreciation the cost of the asset over the useful life. Each year,…
What to do if I failed the CPA exam?
So you failed the CPA exam and you feel lost, right? I know you’re probably frustrated and discouraged, but you might just need to tweak your approach. For each section, we’ve prepared a video that will help you get back on track. If you haven’t used Universal CPA Review, sign up for a free 14-day…
What to focus on in final week of REG studying?
If you are aiming to retake this in just one week, my biggest suggestion would be to focus on fine tuning your approach and unless you feel like you are solid on this, my suggestion would be to focus heavily on entity tax as it’s where the bulk of the points can be picked up. Entity tax: Instead…
Will my CPA notify the IRS if my tax return is wrong in a prior year?
The U.S. tax code (IRC) is a nightmare and now more than ever, people are using CPA’s to have their taxes prepared. With millennials using their stimmy checks to invest in cryptocurrencies, start-ups, and Gamestop (GME to the moon), it can be tough to know how to properly report these items. Even with platforms like…
When can a PSC deduct payments made to owner-employees?
The general rule is that personal service corporations (PSC’s) will be able to deduct owner-employee payments made in the same year that it is includible in their gross income for individual tax purposes.
Are stimulus checks considered taxable income?
No, according to the IRS, stimulus checks are non-taxable income, which means that you won’t have to include the amount in your calculation of taxable income. Technically, the stimulus check is considered a refundable tax credit. The good news for taxpayers is that if you didn’t receive the full stimulus check due to your 2018/2019…
Are donations or contributions to foreign charitable organizations tax deductible?
If the charity is foreign, that means that it is located outside of the United States. In general, the IRS does not allow donations or contributions to foreign charitable organizations.
If I make a donation to attend a charity event, what amount of the donation is tax deductible?
This is addressing the idea that when a taxpayer makes a donation, they are likely receiving consideration or a benefit in return. For example, if the taxpayer paid $250 to attend a charity event, then the taxpayer needs to understand what the fair market value of the ticket is worth. The taxpayer can only deduct…
