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07c – Standard Deduction vs. Itemized Deduction – Which One Should You Choose?
Bytaxtium🧾 Standard Deduction vs. Itemized Deduction – Which One Should You Choose? When filing IRS Form 1040, you have two ways to reduce your taxable income: ✅ Standard Deduction ✅ Itemized Deductions (Schedule A) But you can claim only ONE. So, which is better for you? Let’s break it down: 🔹 Standard Deduction Fixed amount…
S-Corporation Election
BytaxtiumHow To File S-Corporation Election The election of S corporation status is made by filing a form called “Election by a Small Business Corporation” with the IRS Service Center, where the corporation files its corporate federal income tax return. The election of the S corporation status must be unanimously approved by all of the shareholders…
Form 1099-G – Certain Government Payments (Unemployment Benefits)
BytaxtiumForm 1099-G is issued by federal, state, or local governments to taxpayers who received certain types of government payments during the year. It helps ensure that individuals report these amounts as income when filing their Form 1040 (U.S. Individual Income Tax Return). 🔹 Common Situations Where You Receive Form 1099-G 1. Unemployment Compensation – If…
03b – Topic: Taxability – Flow Through Entities
BytaxtiumTopic: Taxability – Flow Through Entities Flow Through Entities play a unique role in taxation. ✅ Entities like Partnerships (Form 1065) and S-Corporations (Form 1120S) file returns at the corporate level. ✅ However, the taxes are paid at the individual level by shareholders or partners. ✅ Income passes through to individuals via Schedule K-1, and…
What Every Tax Pro Needs to Know About Section 1031 Exchanges
BytaxtiumHave you ever had a client mention a 1031 exchange after it’s already happened? Or discovered a 1031 in last year’s workpapers with zero heads-up? I break down the essentials of §1031 like-kind exchanges: what they are, what they are not, and how to handle them when they land in your tax prep queue. Key…
𝗠𝗜𝗦𝗦𝗘𝗗 𝗔𝗠𝗢𝗥𝗧𝗜𝗭𝗔𝗧𝗜𝗢𝗡 – 𝗪𝗛𝗔𝗧’𝗦 𝗧𝗛𝗘 𝗦𝗢𝗟𝗨𝗧𝗜𝗢𝗡?
BytaxtiumLast week, while reviewing a client’s books, I noticed something surprising. For several years, the company had been carrying intangible assets on the balance sheet… but no amortization was ever recorded. The client’s first reaction: “Can we go back and amend all those returns?”Here’s the reality:1. The IRS does not require amending prior returns just…
