Liz Smith, CPA, MSTFP

The limited liability company (LLC), S corporation (S-corp), and C corporation (C-corp) are three popular business structures that can be used for asset protection and income strategy. Think of choosing between these three business entities like roommate arrangements. An LLC would be akin to having an opportunity to share responsibility for the bills and home…

The key difference between FreeTaxUSA vs TurboTax lies in the use case. FreeTaxUSA stands out with its affordable pricing for individual tax filers and straightforward UI, making it an excellent choice for budget-conscious individuals and those with simpler tax situations. On the other hand, TurboTax provides a more comprehensive and user-friendly experience, particularly for complex…

We’re excited to compare two popular tax prep products to help you determine the best fit for your business. I have analyzed TurboTax vs H&R Block by comparing their features, customer service, ease of use, and other offerings. The optimal choice ultimately depends on individual needs, the complexity of the tax situation, preferred support options,…

TaxSlayer and TurboTax are accounting software that differ in key aspects that cater to distinct user needs. After assessing both software, I like that TaxSlayer offers tiered, cost-effective solutions and find it to be better suited for self-employed individuals. While TurboTax is pricier, I find that it provides a user-friendly and comprehensive experience that’s best…

The primary difference between active vs material participation is that active participation requires less involvement. If you participate “materially” instead of “actively,” that level of participation may affect how and when you can take a loss on your tax return, how much of a loss you can take, and the available options for tax strategy….

The deductibility of business credit card payments depends on what kind of credit card charges the payments are covering. If only some of the credit card charges are deductible, then only the portion of the payment relating to the deductible expenses can be included on the tax return. The IRS lets you deduct “ordinary and…

A personal holding company (PHC) is closely held C corporation (C-corp), where at least 60% of its income is from passive investments like stocks, bonds, and rental activities. A company may be classified as a PHC when cash generated from the sale of business assets is not distributed to shareholders in an attempt to avoid…

The standard mileage rate generally results in higher deductions, but the actual method might be better if you drive very few miles. If you go with the standard mileage rate in the first year, you can switch between the two methods later on; however, if you select the actual method the first year, you’ll be…

The main differences between TaxAct vs TaxSlayer are pricing and use case. I really like TaxAct’s user interface (UI) and customer support options, but TaxSlayer offers simple filings at a more affordable price point. Both, however, promise ease of use, accuracy, and efficiency in helping users maximize their tax refunds and minimize their tax liabilities….

H&R Block is a tax preparation service that helps you file your own tax returns either online or with desktop software. With locations in all 50 states, H&R Block can service the public through virtual or in-person appointments. One of my favorite features is the versatility of services offered, which include W-2 import, refund transfer,…

Our list of tax saving tips for small business owners will help you keep your tax bill down. There are many ways to minimize income taxes, such as investing in clean energy, contributing to a retirement plan, identifying unused deductions, converting your sole proprietorship into an S corporation (S-corp), and making estimated tax payments. 1….

All domestic C corporations (C-corps) must file IRS Form 1120, US Corporation Income Tax Return, every year they are in business—even if they don’t have any taxable income. The financial information in Form 1120 is pretty straightforward as long as you have your balance sheet and profit and loss (P&L) statement prepared before completing the…