Tax News — Tax Law Updates & Planning Tips | Automated Business Service
Tax News
The latest updates on federal and California tax law, deadlines, deductions, and what they mean for you.
15 posts
Tax Case: The Home Office Deduction That Went Too Far
A self-employed consultant claimed her entire home as a business office and deducted 100% of her mortgage interest, utilities, and repairs. The Tax Court allowed a fraction — and assessed penalties.
Tax Case: The S-Corp Owner Who Paid Himself Too Little
An S-corporation owner paid himself a $24,000 salary while taking $200,000 in distributions. The IRS recharacterized the distributions as wages — and assessed payroll taxes, penalties, and interest.
Tax Case: When the IRS Says Your Business Is Really a Hobby
A California couple claimed over $2 million in losses from a horse breeding operation over nine years. The Tax Court ruled it was a hobby — and disallowed every dollar.
Tax Case: The $74.5 Million Conservation Easement That Was Worth $500,000
Investors were promised tax deductions worth more than three times their money. The Tax Court allowed $500,000 of a $74.5 million claimed deduction — and upheld a 40% penalty on the difference.
When Are Employer-Provided Health Benefits Taxable?
Most employer-sponsored health coverage is tax-free — but not always. Here is what triggers a taxable benefit, what stays excluded, and what small business owners need to watch out for.
How to Find a Good Tax Preparer: What Changes in California and What Does Not
You are legally responsible for your tax return even if someone else prepared it. Here is what to look for nationwide — and the extra layer of protection California adds through CTEC.
Tax Case: When Your Income Jumps and the ACA Credits Come Due
A taxpayer estimated $15,000 in income when applying for Marketplace coverage, then earned $82,000. The IRS — and two courts — required full repayment of $8,328 in advance premium tax credits.
Tax Case: The Sales Rep Who Lost Every Deduction
An outside sales rep claimed $20,500 in unreimbursed employee expenses - and the Tax Court disallowed every dollar. Here is what went wrong and what it means for W-2 employees who deduct business costs.
Trump Accounts: A Plain-English Guide to the New Federal Child Savings Account
Congress created the first federal child savings account in U.S. history. Here is how Section 530A "Trump Accounts" work, who qualifies for the $1,000 federal seed, and what families need to know before contributing.
Our services in Hesperia, CA — view all services