There are several sources of revenue that are not subject to income tax. Here are the most common sources of money that are not taxed on your federal income tax return: * Borrowed money, such as from banks or personal loans. * Money received as a gift or inheritance...
If you intend to deduct business travel expenses on your income tax return, keep adequate records. If you are later audited, you will be able to substantiate your deductions. Your oral summary of your business expenses will not hold up to an IRS audit. Besides, audits...
The new IRS regulations on capitalization vs expensing are complex. But the part of the regulations that concerns most small businesses makes it easier for them to comply. Here’s an overview of the safe harbor rules for small businesses. If your average annual...
If you do any of the following, you will need an Employer Identification Number (EIN) from the IRS: If you operate your business as a corporation or partnership. If you file reports for employment taxes, excise tax, or alcohol, tobacco and firearms. If you have even...
You now have a choice in how you deduct the expense of a home office. Starting with your 2013 tax return, you can either deduct the actual expenses connected with your home office, or you can use the simplified method of deducting $5 per square foot of the part of...
The IRS has issued a warning about the latest phone scam. The caller claims to be from the IRS and tells the intended victims they owe taxes which must be paid immediately with a pre-paid debit card or wire transfer. Individuals who don’t pay up are threatened...
Small businesses may be missing out on an important new tax perk related to health insurance. And the stakes are even higher in 2014. The Affordable Care Act provides a tax incentive for small business owners who pay at least a portion of their employees’ health...
Are you a parent? Give yourself some credit – a child-related tax credit, that is. Here are two that can reduce your 2013 federal income tax liability. Child tax credit. The child tax credit applies if your dependent children were age 16 or younger at the end of...
What’s your alternative minimum tax (AMT) preference? Though you might prefer to not think about the AMT, certain income and deductions, known as preference items, affect the way the tax will apply to you. Those amounts, along with others called...
If you refer us a new tax customer, we will donate $50 to the United Way Agency of your choice. Do you know someone who can use expert help with their complex personal taxes? Call us today at 317.782.3070.
