Passive activity loss rules quietly limit how much rental and passive losses you can deduct each year. This week's Tax Tip Tuesday breaks down the income phase-outs, Real Estate Professional Status traps, and documentation gaps that turn a legitimate loss into an audit flag.

The PTE election sounds technical, but the idea is simple: let your business pay a piece of your California tax so you can deduct it federally without a cap. Here's a plain-English breakdown of how it works and who it's for.

Organizational chart showing multiple connected business entities — MKHS Tax Group blog on multi-entity structures and IRS scrutiny If your business has grown to include more than one entity — an operating company, a holding company, maybe a separate property LLC — you're not doing anything wrong. Multi-entity structures are common, often advisable, and frequently the smartest way to separate liability, isolate assets, and plan for growth. But it's worth understanding how the

Most business owners have never heard of the Augusta Rule — a tax provision that lets you rent your own home to your business for up to 14 days a year, with the rental income excluded from your personal taxes entirely. This week's Tax Tip Tuesday breaks down how it works, who qualifies, and why the size of your home changes the math.

If you own an S corporation and take distributions, there's one number the IRS watches more closely than almost any other: your salary. Specifically, whether it's reasonable. Getting this wrong isn't just a technicality — it's one of the most common (and costly) audit triggers for small business owners. What Is Reasonable Compensation? The IRS requires that S-corporation shareholder-employees who perform services for the company pay themselves a reasonable salary before takin

If you own rental property, have a stake in a partnership, or receive income from an estate or trust — Schedule E is where it all lives on your return. It's also one of the most consistently mishandled forms I see. The mistakes aren't always obvious. Wrong depreciation lives, misclassified losses, unreported foreign rental income — they compound quietly, year after year. Let's fix that.

When Congress fails to pass a budget or temporary funding bill, the federal government enters what’s known as a shutdown.

As the year winds down, one of the best ways to save on taxes and strengthen your financial future is by maximizing retirement contributions before December 31st.

Most business owners know the big-ticket deductions — rent, payroll, and office supplies — but some of the best deductions are hiding in plain sight.

When a taxpayer is considered a resident under the domestic law of two countries for the same tax year, both jurisdictions may claim the...

Selling property abroad? Don’t forget that the U.S. taxes you on worldwide income — including capital gains from foreign real estate sales.

For U.S. taxpayers living abroad, two of the most common (and costly) reporting traps are FBAR (Foreign Bank Account Report, FinCEN Form 114) and FATCA (Foreign Account Tax Compliance Act, reported on IRS Form 8938).

Summer has always been a season of long days, sunshine, and (for many of us) a slower rhythm—but at MKHS Tax Group, this summer has taken on an extra bit of meaning. We’ve dedicated ourselves to giving back in a uniquely heartwarming way: by reading to shelter dogs at the Pasadena Humane Society every week. It’s become more than just an activity—it’s a cherished part of our routine and a powerful way to make a difference. Why We Read Reading to dogs might sound simple, but it

Expanding your business across borders can be exciting — but it also comes with hidden tax risks. One of the most important and often overlooked is the concept of Permanent Establishment (PE) — a taxable presence in another country that can give that country the right to tax part of your profits.

If you have kids, there are two major tax benefits that can help reduce your bill: the Child Tax Credit (CTC) and the Child & Dependent Care Credit (CDCC). While they sound similar, they work very differently—and both are set to change in 2026 unless Congress acts. 1. Child Tax Credit (CTC) – 2025 Rules The CTC helps families offset the cost of raising children. Who qualifies: Child must be under age 17 at the end of the tax year. Must be your dependent, related to you, and l

Summer is a great time to earn extra income—whether you’re delivering food, walking dogs, tutoring, or working for rideshare services....

Donating to charity feels good — and when you plan it well, it can help you save on taxes too. Here’s what every taxpayer should know...

Big news for taxpayers: Congress passed a sweeping tax package making major changes for individuals, families, and small businesses. If...

Why Estimated Taxes Exist The U.S. tax system is pay-as-you-go, which means taxpayers are expected to pay taxes as income is earned, not...

Tax season can bring stress, especially if you find yourself owing the IRS more than you can afford to pay immediately. But don’t panic!...