Educating Business Owners about Tax Deductions.
1099 Filing Time
Happy new year! The new calendar year always marks the time to get your 1099s in process. 1099s are issued to service providers in your business from the prior year. Yes, in your business. 1099's protect and secure your business income tax deduction. There is so much...
Updated Mileage Rate for 2023 Tax Deductions
The IRS has updated their standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable or medical purposes. Beginning on January 1, 2023, the standard mileage rates for the use of a car (also vans, pickups or panel...
Understanding Kiddie Tax
I often hear adults saying that they move their investments or their assets into their children's names to minimize their income taxes. This is an old ploy that the IRS wised up to many years ago and so if your child (including a student up to 23 years old), has...
College tax credits – how do they work?
The two most popular tax credits you need to understand are the American Opportunity Credit and the Lifetime Learning Credit. Please ask your tax advisor if either of these is available to you. Given the price of college today, these credits are extremely valuable....
Ready to hire a CPA?
It is that time of the year when we not only stress about the upcoming holidays but we ALSO stress about the upcoming tax filings in the spring. December is the month that many people switch accountants or hire an accountant for the upcoming tax season. IF you are...
Make a charitable donation before December 31st AND get a tax deduction
I get a lot of questions at this time of the year about giving to charity. How much to donate? What will I save on my taxes and as with all tax questions, my answer is, "that depends". How much can you give to charity? Well you can give 100% of your income to charity...
Your TIPS are TAXABLE
Did you know that your tip income is taxable? YES it is! The IRS published a remind about this in October 2022. Do you have tip income? Then please be sure that you declare this income on your annual tax return. Now remember, tip income includes both cash AND non...
IRS scrutinizes E-Retailers
The IRS knows about the internet! Yes, their agents spend time online looking at businesses. According to the IRS, because of the borderless and paperless nature of the industry, they have concerns about income being ommitted. And electronic expense receipts can be...
Dreaming of a cash based business?
Interested in starting or buying a cash based business ? I get a LOT of these requests from clients. Not so fast, the IRS may be on to you! The General Accounting Office estimates that the individual income tax "gap", being the income tax reported vs the income tax...
How much cash do you need to pay your bills every month ? After taxes or before taxes?
The average American needs a salary of $107,000 annually in order to feel financial healthy, according to Personal Capital in September 2022. How much do you need in order to feel financial healthy? If you were to quit your job, how much income would you need to...