Mark Your Calendars! Time to Get Ready for Your Small Business 1099-Misc Reporting

A month after the new year begins, your business may be required to comply with rules to report amounts paid to independent contractors, vendors and others. You may have to send 1099-MISC forms to those whom you pay nonemployee compensation, as well as file copies with the IRS. This task can be time consuming and […]

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Selling Stock By Year End? Avoid the Wash Sale Rule.

How the rule works Under this rule, if you sell stock or securities for a loss and buy substantially identical stock or securities back within the 30-day period before or after the sale date, the loss can’t be claimed for tax purposes. The rule is designed to prevent taxpayers from using the tax benefit of […]

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50% Deduction for Business Meals

The 2017 Tax Cuts and Jobs Act (TCJA) included a change to the meals and entertainment deduction and disallowed businesses to take the 50% for entertainment, amusement or recreation expenses.  Business are still allowed to take a 50% deduction on business meals though.   What qualifies as a business meal? In order to qualify as […]

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Charitable Contributions Through the Use of a Donor Advised Fund

A donor advised fund is a simple and potentially tax-advantageous way to donate to your favorite charities. The new tax law has effectively doubled the standard deduction, making it difficult for many individuals to capture any tax benefit to their charitable giving due to the new $10,000 cap on state and local taxes paid making […]

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Cash Method or Accrual Method?! And Why You Might Want to Consider a Change in Method of Accounting

One of the key takeaways from the Tax Cuts and Jobs Act passed in December of 2017, which took effect for 2018, was the threshold for requiring taxpayers to follow the accrual method of accounting. The threshold was increased from $5 million of gross receipts to $25 million. Now, businesses that average less than $25 […]

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Deducting Education Costs From Your Business

Are education costs adding any type of value to your business? If so, they may be fully deductible and can lower tax bills. When deciding whether or not certain education costs are deductible to your business, there is generally a two-part test: Do the education expenses maintain or improve required skills for that business industry? […]

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Claiming a Tax Deduction for Unreimbursed Educator Expenses

With the new school year right around the corner, teachers are beginning to get their classrooms ready for the beginning of the school year.  In many cases, educators have to purchases items for the classroom that the school is unable to reimburse them for.  A tax deduction is available for educators that allows up to […]

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Ouch! Watch Out for the “Kiddie Tax”

I have always taken a proactive approach when it came to planning for my financial future. After recently passing the one-year mark of parenthood, and seeing my financial plan evolve, I have begun to dive deep into the impacts of what my son’s tax situation might look like in the years to come as well. […]

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First Time Penalty Abatement

Receiving correspondence from the IRS will unnerve anyone, especially correspondence that has assessments for penalty charges included! The IRS realizes, however, that everyone is entitled to make a mistake and under certain conditions, you may be eligible to request an abatement of the assessed penalty charges reflected on the notice. This abatement waiver can decrease […]

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Deducting a Vehicle Through Your Business

If you own a small business, you may be able to deduct expenses related to your vehicle. Business use of vehicles can lower your taxable income and save some extra tax dollars. The general rule is you can either deduct mileage or actual costs. This requires a slight calculation to see which is more beneficial […]

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