A losing year in your business isn't just bad news to survive — it's a tax attribute to manage. Between basis limits, at-risk rules, passive activity restrictions, the excess business loss cap, and the net operating loss (NOL) rules that pick up whatever's left, a single loss can pass through four or five separate gauntlets before it actually reduces your tax bill. And thanks to the One Big Beautiful Bill Act (OBBBA), signed into law in July 2025, one of those gauntlets just

Selling a stock, a rental property, a piece of equipment, or shares in a small business? The sale itself is often the easy part — it's the reporting afterward that trips people up. Small errors on your tax return can lead to IRS notices, overpaid tax, or penalties that were entirely avoidable. Here are the most common asset sale reporting mistakes we see, and how to steer clear of them.

Meeting a residency test in two countries is one problem. Having both countries actually assess tax on you as a resident, in the same year, is a different and more urgent one. When that happens, you're no longer just planning around the rules — you're in an active dispute, and the clock on how you respond matters as much as the facts themselves.

If you split your time between the U.S. and another country — or moved abroad but kept ties back home — you may meet the legal test for tax residency in both places at once. Dual residency is not automatically a problem, but it is a warning sign that your U.S. filing could be wrong if it is not addressed, and it can lead to the same income being reported as taxable in two countries with no relief unless you claim it correctly.

Every cross-border tax question eventually collapses into the same underlying issue: is this dollar of income U.S.-source or foreign-source? It sounds like a formality, but the answer drives some of the most consequential numbers on an international return — the foreign tax credit limitation under IRC §904, whether a nonresident alien owes U.S. tax at all under §871 or §882, which income falls into which FTC “basket,” and how a tax treaty's sourcing tie-breakers apply.

If you're a U.S. person receiving income from abroad, or a foreign person earning income connected to the U.S., withholding rules can catch you off guard. Getting the basics right now can prevent notices, penalties, and cash-flow surprises later.

Internal structure in CFCs If you're a U.S. person who owns (or has a stake in) a company incorporated outside the United States, three terms should be on your radar: Controlled Foreign Corporation (CFC), Subpart F income, and GILTI. These rules exist to prevent U.S. shareholders from parking profits offshore indefinitely — and they can generate a current U.S. tax bill even if you never see a dividend from the foreign company. This week, we're breaking down how these three pi

If you're holding Bitcoin, Ethereum, or other digital assets on an exchange based outside the U.S. — Binance, a Hong Kong or Singapore-based platform, or an exchange tied to your home country — you may be sitting on a reporting obligation you haven't thought about. Crypto feels borderless, but the IRS and FinCEN don't see it that way. Where your exchange is legally domiciled matters, and getting it wrong can mean penalties that have nothing to do with whether you owed any tax

Putting your spouse, child, or parent on the payroll is one of the most common — and most misunderstood — small business tax moves. Done correctly, family employment can shift income to lower tax brackets, unlock retirement plan contributions for a minor, and even eliminate certain payroll taxes entirely. Done carelessly, it's one of the fastest ways to draw an IRS examination, because the family relationship itself is a built-in audit flag.

Own a condo in Manila, a flat in London, or a rental house in Guadalajara? If you're a US citizen, green card holder, or resident alien, the IRS wants to hear about the rent you collect on it — no matter where that property sits or what currency the rent shows up in. Here are the basics of reporting foreign rental income correctly, so a straightforward income stream doesn't turn into a compliance headache.

Estimated taxes aren't just an IRS formality — they're one of the simplest tools you have to stay ahead of your tax bill instead of chasing it. Here's why we bring this up every quarter, plus a quick quiz to see where you stand.

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.

Cryptocurrency and foreign exchange icons with tax documents — MKHS Tax Group blog on crypto enforcement and foreign reporting If you hold cryptocurrency — especially on a foreign exchange — 2026 is the year the IRS's visibility into your activity changed dramatically. Between new broker reporting rules and an evolving stance on foreign account disclosures, the assumptions many crypto holders have relied on for years no longer hold up. Here's what's actually changed, and what

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.

Basis is one of the most important numbers in your tax life — and one of the most consistently ignored.

The home office deduction is one of the most misunderstood — and most scrutinized — deductions on a tax return. I see it come up constantly in client conversations, and the same question surfaces every time: "Is it really worth claiming? Will it trigger an audit?" The honest answer? Done right, the home office deduction is completely legitimate and worth claiming. Done wrong, it's a red flag that can invite exactly the kind of IRS attention you want to avoid.

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