Stay Ahead of Law Changes & Protect Yourself Against Being Audited: Corporate Transparency Act and Reasonable Compensation

1. History of Taxes

Welcome to Questioning Your Cents where you can get your real-world, pragmatic tax & financial advice for business owners, entrepreneurs and independent contractors.

We are your host Kevin Molen and Charles Steinmetz. Our job is to help people education on how to manage your money and save taxes. In this episode, we talk about why we have taxes and how our tax laws have changed over time.

 

 

Important Points:

Intro

Al Capone and taxes

Formation of the IRS

1986 – major tax reform

Bandaids in tax reform with every president

Simplification of the tax code

Taxes in an election year, tie between politics and taxes

Implementation of eFile

Tax bracket changes

2017 Tax Cuts and Jobs Act

Changes in Corporate tax rates

Changes in Child tax credits

Changes in standard deduction, itemized vs standard deduction

Loss of employee deductions

Tax rules while selling a home

“Comfort Zone”

When Should I form an S-Corp

Roth or Traditional IRA?

Outro

 

Important links in order of appearance:

https://www.fbi.gov/history/famous-cases/al-capone

https://www.irs.gov/pub/irs-utl/irs-history-timeline_march-2019.pdf

https://www.congress.gov/bill/99th-congress/house-bill/3838

https://www.investopedia.com/articles/tax/10/concise-history-tax-changes.asp

https://www.google.com/search?q=trump+vs+biden+tax+plan+comparison&rlz=1C1NHXL_enUS915US915&oq=trump+vs+biden+tax+plan+comparison&aqs=chrome..69i57.5438j0j7&sourceid=chrome&ie=UTF-8

https://www.accountingtoday.com/list/election-2020-trump-vs-biden-on-tax-policy

https://www.irs.gov/pub/irs-news/fs-11-10.pdf

https://taxfoundation.org/the-tax-cuts-and-jobs-act-simplified-the-tax-filing-process-for-millions-of-americans/

https://www.congress.gov/115/bills/hr1/BILLS-115hr1enr.pdf

https://www.irs.gov/newsroom/irs-provides-tax-inflation-adjustments-for-tax-year-2020

https://www.youtube.com/watch?v=teGrGCWpEMQ&t=72s

https://taxfoundation.org/why-corporations-pay-no-income-tax/

https://www.taxpolicycenter.org/briefing-book/what-child-tax-credit

https://www.irs.gov/newsroom/taxpayers-should-know-the-difference-between-standard-and-itemized-deductions

https://www.nerdwallet.com/article/taxes/selling-home-capital-gains-tax

https://molentax.com/llc-vs-s-corp-the-tax-implications-of-having-a-business/

https://molentax.com/to-roth-or-not-to-roth-that-is-the-question/

 

Contact us:

info@molentax.com

281-440-6279

 

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Check out this episode!

The Molen & Associates Difference

Mike Forsyth

“Super helpful and timely. This is our first year with them and we look forward to trusting them with our taxes and business books for years to come.”

Caitlin Daulong

“Molen & Associates is amazing! They run an incredibly streamlined process, which makes filing taxes a breeze. So impressed with their attention to detail, organization, and swift execution every year. Cannot recommend them enough!”

Sy Sahrai

“I’ve been with Mr. Molen’s company for few years and I felt treated like family respect and dignity. They are caring, professional and honest, which hard to find these days. Love working with them.”

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