NoCo CPAs

When a new law is enacted there is ALWAYS those that want to work around it. Take the new one both candidates are proposing to not tax tips. On the surface it gets rid of the nightmare of trying to track tips and include them on the W2 and tax them but all ready those creative people are beginning to think of ways to use it......

From Accounting Today "The Pros and Cons of tax-free tips" ....."Perhaps most consequentially, depending on how circumscribed this proposal might be worded if enacted, it could incentivize nontipped, highly compensated and hugely creative employees and nonemployee personnel and their companies, funds, and other entities to try and restructure compensation to qualify as tax-exempt 'tips' income," Kushner predicted. "For private equity, venture capital and hedge fund managers, general partners, this could prove to be an even bigger boon than the taxation of 'carried interest' income at the reduced long-term capital gains tax rate," he concluded.

Basically pay a CFO a smaller salary and then instead of a bonus give them a tip......

The Augusta rule works but don’t be greedy….

Tax Court Case Shows What TikTok Isn’t Telling Taxpayers About Business Expenses A recent Tax Court examined what taxpayers need to know about business expenses that they're not hearing on social media—including that they must be ordinary & necessary.