Service charge reporting deadline postponed
Tuesday, December 18th, 2012
The Internal Revenue Service has given businesses an extra year to comply with new rules on how to treat service charges, until January 1, 2014. The new rules had been scheduled to take effect January 1, 2013, but the deadline was extended in response to public comments to allow companies time to make their accounting […]
Read More »Employee or independent contractor stakes rise
Thursday, November 29th, 2012
Employee or independent contractor? Sure, we understand that treating workers as independent contractors is easier in so many ways. If you are struggling with the question of which classification your workers fall under, it is more important than ever to consider the consequences if the government disagrees with your stance. This article in Forbes magazine […]
Read More »Medicare premiums are business deductions
Wednesday, July 18th, 2012
A self-employed person may get a business deduction for health insurance premiums. The IRS has clarified that Medicare premiums paid by self-employed persons qualify as deductible health insurance premiums. If you did not include Medicare premiums in your self-employed health insurance deduction, you may want to consider amending your tax returns to include them. Before […]
Read More »5 tax myths (part 2)
Thursday, June 7th, 2012
Last time, we talked about tax myths regarding investments such as your house, business assets, and financial instruments. The mantra, “Don’t let the tax tail wag the dog,” applies to many decisions. Tax impact should be a consideration, but not the most important factor in a decision involving your money. Here are a couple more […]
Read More »5 tax myths (part 1)
Wednesday, June 6th, 2012
We got a call recently from a client asking if he should finance an equipment purchase to lower his tax bill. First, I commended him for thinking ahead about taxes and for calling us for feedback about his financial decision. Then I asked him if it made good business sense for him to do this […]
Read More »2012 standard mileage rates
Thursday, December 22nd, 2011
The IRS has announced standard mileage rates for 2012. Beginning on Jan. 1, 2012, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be: 55.5 cents per mile for business miles driven 23 cents per mile driven for medical or moving purposes 14 cents per mile driven […]
Read More »6 Year-end tax reduction tips
Wednesday, December 21st, 2011
Use these six tax reduction tips to reduce your 2011 tax bill, but act before December 31, 2011. Make charitable contributions by December 31. Keep a canceled check, a bank statement, credit card statement or a written statement from the charity, showing the name of the charity and the date and amount of the contribution […]
Read More »Bathroom as home office?
Thursday, August 18th, 2011
The Tax Court ruled that a taxpayer cannot claim his bathroom as a home office in Bulas v. Commissioner, T.C. Memo. 2011-201 (Aug. 17, 2011). (Insert your own joke or mental image here….) The taxpayer had a home-based business, a tax practice for which he used one bedroom of his home as an office. He […]
Read More »Plan now to save taxes
Tuesday, August 9th, 2011
Summer is a good time to talk with us about planning to save taxes next year. We have more time to help you take stock of the first half of the year and explore options before it’s too late in the year for them to make a difference. Among those options: Consider equipment purchases, to […]
Read More »Standard mileage rates change
Friday, July 1st, 2011
The IRS has adjusted the standard mileage rates beginning July 1, 2011, in response to higher gasoline prices. The new standard mileage rates will apply through the end of 2011. Mileage Rate Changes Purpose Rates 1/1 through 6/30/11 Rates 7/1 through 12/31/11 Business 51 55.5 Medical/Moving 19 23.5 Charitable 14 14 You have the option […]
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