Live in Maryland, work in DC, bill Virginia: where do you actually pay tax?
Everyone in the DMV knows about reciprocity. It is why a Maryland resident working in DC files only in Maryland, and why no one in the region thinks twice about a paycheck that crosses a border. The agreements are real and they work. The problem is what people assume they cover. Reciprocity covers your paycheck. […]
The 3.8 percent surcharge your preparer may never mention
You got a tax bill bigger than expected. You looked for the mistake and found none. The return was correct. What you may have hit is a surcharge that does not announce itself: the net investment income tax. What it is Under IRC §1411, the net investment income tax adds 3.8 percent on top of […]
Your rental sale will cost more than you think
Most landlords estimate the tax on a rental sale the same way: take the gain, multiply by 15 or 20 percent, done. The real number is usually higher, sometimes by a lot, and the surprise lands at filing, long after the proceeds have been spent or reinvested. The gap has a name: depreciation recapture. Why […]
There is no 60/40 rule for S-corp salaries
You have probably heard the rule: pay yourself 60 percent as salary, take 40 percent as distributions, and the IRS leaves you alone. It gets repeated in owner groups, on YouTube, and sometimes by accountants who should know better. It is not a rule. No percentage split appears in the tax code, in IRS guidance, […]
Multiple Income Streams in the DMV: Why Most LLC Owners Get Their Tax Structure Wrong
An LLC is a legal wrapper, not a tax strategy. What an LLC does to taxes depends on the elections made and the structure built around it. The most common pattern in the DMV is a W-2 professional with a side LLC for consulting, advisory work, or rental property. Most of those structures have a […]
High-Income Tax Strategy in the DC Metro: The Four Levers That Actually Matter
Most national tax content for high earners treats every reader as a generic W-2 with maybe a side hustle. The DMV doesn’t work that way. A typical DC Metro top earner doesn’t have one income source. They have some combination of W-2 plus equity, K-1 income from a partnership, contractor pass-through ownership, multi-jurisdictional residency, and […]
What Happens If You Haven’t Filed Taxes in Several Years
Unfiled taxes can quickly turn into a serious problem if left unaddressed for years. Many people fall behind on filing, but the longer it continues, the more complex and costly it becomes. A difficult year turns into two. Life gets complicated. The anxiety of filing something late makes it easier to not file at all. […]
How Business Owners Can Legally Pay Less in Taxes Every Year
Reduce taxes legally is the goal of every business owner who wants to keep more of what they earn. Most business owners overpay not because they have to, but because they focus on filing instead of planning. Some version of: am I paying more than I have to? In most cases, the answer is yes. […]
I Got an IRS Notice. What Do I Do Now?
IRS notice help is critical when you receive a letter from the IRS and are unsure what to do next. Getting a notice can feel overwhelming, but understanding your options early makes a big difference. Some ignore it hoping the situation resolves itself. Some call the number on the letter without understanding what they are […]
Why Your S-Corp Might Be Costing You More Than You Think
S-Corp tax mistakes are one of the biggest reasons business owners end up paying more than expected. Most business owners set up an S-Corp because someone told them it would save on taxes. And in the right situation, it does. But the structure only works when your salary, distributions, and compensation strategy are set up […]
