Elite Tax & Business Services Inc

02/13/2026

Here's a half time show

01/16/2026

Went for a walk.

01/13/2026

Most business owners are surprised to learn that they can legally move money from their company to themselves completely tax-free—and still deduct the expense. This opportunity comes from the Augusta Rule under IRC §280A(g), which allows a homeowner to rent their personal residence for up to 14 days per year and exclude that rental income from federal taxation. When structured correctly, a business can rent the owner’s home for legitimate purposes such as board meetings, planning sessions, or trainings, deduct the rental expense, and shift income to the owner without triggering tax.

To make the Augusta Rule work, there must be a bona fide operating business entity, most commonly an S corporation, C corporation, or partnership. Sole proprietors generally do not qualify because renting property to yourself lacks sufficient legal separation. The business must have a valid business reason for using the home, a written rental agreement, contemporaneous documentation like agendas and minutes, and actual payment from the entity to the homeowner to support the deduction.

The rental rate must be reasonable and defensible. Fair market value should be established using comparable short-term rentals, local event or conference space pricing, or hotel meeting room rates in the same geographic area. Considerations such as square footage used, length of use, amenities, and location all factor into pricing. Conservative, well-supported rates are essential, as excessive charges increase audit risk and can undermine the entire strategy.

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01/12/2026

To qualify for Real Estate Professional Status (REPS)* under IRC §469(c)(7), all of the following must be met:

1. More than 50% of personal services
You must spend more than half of your total working time during the year in real property trades or businesses in which you materially participate.

2. 750-hour requirement
You must perform at least 750 hours during the year in real property trades or businesses (e.g., development, construction, acquisition, rental, management, leasing, brokerage).

3. Material participation
You must materially participate in each rental activity **or** make a §469(c)(7) aggregation election to treat all rentals as one activity.

Key notes:

Hours as an employee only count if you own>5%of the employer.
Spouse’s hours count toward tests if filing jointly.
Contemporaneous time logs are critical.

Failing any one test means rental losses remain passive.

01/12/2026

New “Trump IRA” accounts created under the OBBBA give kids a head start on long-term savings—with the federal government seeding a one-time **$1,000** contribution for children **born 2025–2028** and then allowing parents, relatives, or others to contribute up to **$5,000 per year** (with employers able to add up to **$2,500** of that) through the year the child turns **18**; funds generally can’t be withdrawn until age 18 and then the account transitions to function like a traditional IRA for the beneficiary’s future financial goals. ([bdo.com][1])

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05/21/2025

Using “miscellaneous” on your profit and loss statement can cause problems. It doesn’t show what the money was really spent on, which makes it hard to track your business costs. If you get audited, the IRS may ask a lot of questions. It’s better to be clear and use specific categories like office supplies, travel, or meals. This helps you stay organized, catch mistakes, and make smarter money choices.

12/11/2024

🎁 **Understanding the 2024 Gift Tax Exclusion and Receiving Foreign Gifts** 🎁

--2024 Gift Tax Exclusion--

For 2024, you can give up to **$18,000 per recipient** without incurring gift tax or needing to file a gift tax return. Married couples can combine their exclusions for a total of **$36,000 per recipient**. This helps reduce your taxable estate over time. Note: If a married couple gives the full $36,000, a gift tax return must be filed, but no tax is due.

**Reporting Foreign Gifts**

Receiving gifts from foreign individuals or entities? Here’s what you need to know:

1. **Thresholds for Reporting**: Report foreign gifts if you receive more than **$100,000** from a foreign person or **$19,570** from a foreign corporation/partnership in 2024.
2. **Form 3520**: File **Form 3520** if the total gifts exceed these thresholds. This form is due by the 15th day of the fourth month after your tax year ends.
3. **Penalties**: Missing the reporting deadline or providing inaccurate info can lead to penalties. Stay compliant!

If you received or gave a gift this year, remember to include that info with your tax documents. 📄✨

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💬 **Have questions about gift taxes or reporting foreign gifts? Drop them in the comments below or send me a message! I'm here to help. ** 😊

12/09/2024

😇😉😊 Understanding Mileage Deductions: Actual Expenses vs. Standard Mileage Rate 🚗💼

When it comes to deducting vehicle expenses for business purposes, the IRS offers two main methods: the Actual Expenses method and the Standard Mileage Rate method. Each has its own benefits and requirements, so it's essential to understand how they work to choose the best option for your needs.

**Note:** If you are an employee, there is no federal deduction. Some states still allow it.

👣 **Actual Expenses Method**

The Actual Expenses method allows you to deduct the actual costs associated with operating your vehicle for business purposes. This includes:

- **Fuel and Oil**: All costs related to gasoline and oil changes.
- **Maintenance and Repairs**: Expenses for vehicle upkeep and any necessary repairs.
- **Depreciation**: The decrease in value of your vehicle over time.
- **Insurance**: Premiums paid for vehicle insurance.
- **Lease Payments**: If you're leasing the vehicle, the lease payments can be deducted.
- **Registration Fees and Licenses**: Costs for registering your vehicle and obtaining necessary licenses.
- **Parking Fees and Tolls**: Any parking or toll fees incurred during business travel.

To use this method, you need to keep detailed records of all expenses. This can be time-consuming but may result in a larger deduction if your actual costs are high.

👍 **Standard Mileage Rate Method**

The Standard Mileage Rate method is simpler and involves multiplying the number of business miles driven by the IRS standard mileage rate. For 2024, the rate is 67 cents per mile. This rate covers typical vehicle expenses, including depreciation, fuel, repairs, insurance, and maintenance.

To use this method, you only need to track your business mileage. This can be done using a mileage log, smartphone app, or other reliable tracking methods. This method is often preferred for its simplicity.

😉 **Choosing the Right Method**

When deciding which method to use, consider the following:

- **Record-Keeping**: If you prefer less detailed record-keeping, the Standard Mileage Rate method may be more convenient.
- **Expense Level**: If your actual expenses are high (e.g., luxury vehicle, high maintenance costs), the Actual Expenses method might yield a larger deduction.
- **Consistency**: Once you choose a method for a vehicle, you're generally required to stick with it for that vehicle for the entire year. However, you can switch between methods from year to year for different vehicles.

👀 **Hybrid Use**

In some cases, you may use both methods for different vehicles or different tax years. Just remember that whichever method you choose, meticulous record-keeping and compliance with IRS guidelines are crucial.

❤ **Conclusion**

Both the Actual Expenses and Standard Mileage Rate methods offer valuable deductions for business vehicle use. Weighing the pros and cons of each method, and possibly consulting with a tax professional, will help you make the best choice for your specific situation.

**Note:** If you are choosing the actual method, we need more info. Purchase price and date of vehicle, mileage for business and non-business use.

Please start gathering your documentation now.

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If you have any more questions or need further details, feel free to reach out! 📞📧

12/04/2024

𝗡𝗮𝘁𝗶𝗼𝗻𝗮𝗹 𝗧𝗮𝘅 𝗦𝗲𝗰𝘂𝗿𝗶𝘁𝘆 𝗔𝘄𝗮𝗿𝗲𝗻𝗲𝘀𝘀 𝗪𝗲𝗲𝗸, 𝗗𝗮𝘆 𝟯: 𝗚𝘂𝗮𝗿𝗱 𝗮𝗴𝗮𝗶𝗻𝘀𝘁 𝗳𝗿𝗮𝘂𝗱𝘀𝘁𝗲𝗿𝘀 𝘄𝗶𝘁𝗵 𝗮𝗻 𝗜𝗥𝗦 𝗜𝗱𝗲𝗻𝘁𝗶𝘁𝘆 𝗣𝗿𝗼𝘁𝗲𝗰𝘁𝗶𝗼𝗻 𝗣𝗜𝗡

WASHINGTON — The Internal Revenue Service and the Security Summit partners today encouraged taxpayers to add an extra layer of protection between their tax returns and identity thieves by joining the Identity Protection Personal Identification Number (IP PIN) program at the start of the 2025 tax season.

More than 10.4 million taxpayers already have their IRS IP PIN, a unique six-digit number used to verify their identity when filing a return. It’s available to anyone with a Social Security number (SSN) or an Individual Taxpayer Identification Number (ITIN).

To get one, taxpayers must create an IRS Online Account, which also allows taxpayers to securely access their tax and return information from previous years, including information from their forms W-2 and 1099. The Online Account is taking on increasing importance as the IRS transforms with the use of new digital tools and features as part of the agency’s transformation work.

“This PIN isn’t just another number for taxpayers to memorize. In a sense, it’s a secret number between the taxpayer and the IRS that freezes out fraudsters and identity thieves looking to file bogus returns,” said IRS Commissioner Danny Werfel. “The PIN provides an extra layer of protection for people’s tax returns and a speedy refund.”

“The bonus of getting an IP PIN is that the taxpayers also ensure they have access to their Online Account and the valuable information there,” Werfel added. “Not only do taxpayers have easy access to their tax information that can help at tax time, but securing their Online Account also blocks identity thieves from trying to access this information. This is an important area for taxpayers to keep an eye on because we continue to see identity thieves trying to trick people into giving access to this valuable account.”

𝗦𝗶𝗴𝗻 𝘂𝗽 𝗳𝗼𝗿 𝗢𝗻𝗹𝗶𝗻𝗲 𝗔𝗰𝗰𝗼𝘂𝗻𝘁 𝗻𝗼𝘄; 𝗜𝗣 𝗣𝗜𝗡 𝗮𝘃𝗮𝗶𝗹𝗮𝗯𝗹𝗲 𝗶𝗻 𝗝𝗮𝗻𝘂𝗮𝗿𝘆

With the IP PIN program unavailable until early January 2025 for annual maintenance, the IRS encourages people to sign up for an IRS Online Account now. They can enroll in the IP PIN program when it becomes available again in early January.

The IP PIN program is the focus of the third day of National Tax Security Awareness Week 2024, an annual event now in its ninth year. The effort was created by the Security Summit, a public-private partnership formed in 2015 between the IRS, state tax agencies, the tax software and financial community, as well as tax professionals. The group combined forces to combat tax-related identity theft and raise awareness among taxpayers and tax professionals about safeguarding themselves and their clients from security threats.

With the 2025 tax season fast approaching and the holiday shopping season already underway, now is the time for taxpayers and tax pros to review their security measures and take any extra steps they need, like signing up for an IP PIN or an Online Account, to secure their financial information. The effort will help protect them from the cybercriminals fishing for any personal information — including name, address or SSN — that can be used to file a fraudulent tax return.

𝗛𝗼𝘄 𝘁𝗼 𝗴𝗲𝘁 𝗮𝗻 𝗜𝗣 𝗣𝗜𝗡
1. Create an IRS Online Account now.
2. In early January, sign-in, then navigate to their profile information, scroll down and follow the prompts to enroll in the IP PIN program and learn their unique 6-digit number.
3. Remember that IP PINS are only valid for one year, and participating taxpayers must acquire a new PIN annually.
4. Parents or guardians with custody of minor children and other dependents can secure IP PINs on their behalf but must complete Form 15227, Application for an Identity Protection Personal Identification Number (IP PIN), and mail the paperwork to the IRS rather than registering online.

The IRS also noted that the IP PIN process continues to be refined. Given those improvements, the IRS encourages anyone previously rejected for an IP PIN during the identity authentication process to apply again.

𝗧𝗵𝗿𝗲𝗲 𝗿𝗲𝗺𝗶𝗻𝗱𝗲𝗿𝘀 𝘁𝗼 𝗿𝗲𝗺𝗮𝗶𝗻 𝘃𝗶𝗴𝗶𝗹𝗮𝗻𝘁 𝗮𝗴𝗮𝗶𝗻𝘀𝘁 𝗳𝗿𝗮𝘂𝗱 𝗮𝗻𝗱 𝗶𝗱𝗲𝗻𝘁𝗶𝘁𝘆 𝘁𝗵𝗲𝗳𝘁
1. The IRS will never email, text or call to request an IP PIN.
2. Taxpayers should keep their IP PIN safe and should not reveal their IP PIN to anyone but their trusted tax professional or tax software provider. They should only request an IP PIN to complete a tax return.
3. To avoid processing delays, taxpayers should enter their IP PIN on any return, whether filed electronically or by paper, including amended returns and returns for prior years.

𝗔𝗱𝗱𝗶𝘁𝗶𝗼𝗻𝗮𝗹 𝗿𝗲𝘀𝗼𝘂𝗿𝗰𝗲𝘀
Go to National Tax Security Awareness Week 2024 for additional information.

For more information on preventing tax information theft, visit Security Summit.

Victims of identity theft can visit Identity Theft Central.

Find additional information on tax scams at Tax Scams.

𝗚𝗲𝘁 𝗿𝗲𝗹𝗶𝗮𝗯𝗹𝗲 𝘁𝗮𝘅 𝗶𝗻𝗳𝗼 𝗳𝗿𝗼𝗺 𝘁𝗵𝗲 𝗳𝗼𝗹𝗹𝗼𝘄𝗶𝗻𝗴 𝘁𝗿𝘂𝘀𝘁𝗲𝗱 𝘀𝗼𝘂𝗿𝗰𝗲𝘀:
• Follow IRS on social media.
• Visit an IRS walk-in center.
• Talk to a trusted tax professional. (https://elite-protax.com/tb)

ElitePro Tax & Bookkeeping offers tailored financial services to help your business succeed. Trust us for reliable tax and bookkeeping solutions.

10/18/2024

📢 Attention Tax Preparers! 📢

Stay ahead of the game with these essential tips for the upcoming tax season:

Update Your Software: Ensure your tax software is up-to-date to handle new tax codes and regulations.

Know the Deadlines: Mark your calendars for key filing dates to avoid last-minute rushes.

Client Communication: Maintain clear communication with your clients about documents needed and deadlines.

Security First: Protect sensitive client data with robust cybersecurity measures.

Training and Resources: Invest in continuing education to stay informed about industry changes.

Let's make this tax season the best one yet! 💪💼

09/30/2024

http://photos4.meetupstatic.com/photos/event/c/a/b/e/600_328551902.jpeg http://photos3.meetupstatic.com/photos/event/c/9/d/8/600_427371672.jpeg Gold Star Referral Clubs -