Category: Accounting

What to Know About the Tax Treatment of Wages and Salaries

What to Know About the Tax Treatment of Wages and Salaries

If you receive wage income at any point during the calendar year, you will likely need to include it on your federal income tax return. This is true whether you’re an employee of a company that you don’t own, an employee of a corporation that you do own, or a sole proprietor. In most cases,…
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Tax Deadline Delayed 2020

Tax Filing and Payment Deadline Extended to May 17, 202

Tax Filing and Payment Deadline Extended The Treasury Department and Internal Revenue Service announced today that the federal income tax filing due date for individuals for the 2020 tax year will be automatically extended from 04/15/2021, to 05/17/2021. The IRS will be providing formal guidance in the coming days. “This continues to be a tough…
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PPP Loan and the Economic Aid Act

PPP Loan and the Economic Aid Act

The United States Small Business Administration (SBA), in connection with the Treasury Department, announced that the Paycheck Protection Program (PPP) will re-open the week of January 11 for new borrowers and certain existing PPP borrowers. To promote access to capital, initially only community financial institutions will be able to make First Draw PPP Loans on…
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Qualifying as a Real Estate Professional and Deducting Passive Losses

Qualifying as a Real Estate Professional and Deducting Passive Losses

A taxpayer can overcome the presumption that all rental activities are passive if the taxpayer qualifies as a real estate professional by satisfying the two tests of Sec. 469(c)(7)(B): More than one-half of the personal services performed in trades or businesses by you during the tax year are performed in real property trades or businesses…
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Do I Need an LLC to Start a Business?

Do I Need an LLC to Start a Business?

You do not need an LLC to start a business, but for many businesses the benefits of an LLC far outweigh the cost and hassle of setting an LLC up. An LLC, or limited liability company, provides personal liability protection and a formal business structure. You can also get those things by forming a corporation…
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How to Maximize Tax Deductions and Tax Credits – LNK Tax Group

Paying income taxes is the obligation of all Americans. While we are happy to pay our fair share, no one wants to pay too much income tax. That is where tax deductions and credits come into play. U.S. Congress has written the tax code; all 4 million words of it; to allow individuals and businesses…
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IRS COVID-19 Tax Relief

IRS COVID-19 Tax Relief

The Internal Revenue Service (IRS) has announced several changes designed to help struggling taxpayers impacted by COVID-19 more easily settle their tax debts with the IRS. The IRS reviewed its collection activities to determine how it could apply relief to taxpayers who owe but are struggling financially because of the COVID-19 pandemic. The IRS expanded…
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Sales Tax E-Commerce Business

How to Administer Sales Tax for Your E-Commerce Business

You are running your very own online e-commerce store; How exciting, but e-commerce sales tax laws, not so much. We know sales tax can really kill your energy. This blog will better explain the various sales tax rules for e-commerce businesses. When must your E-Commerce business start Administering sales tax? Your eCommerce business must charge…
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Vehicles and Section 179 deduction

Vehicles and Section 179 deduction

One of the more popular uses of the Section 179 Deduction has been for vehicles. In fact, several years ago the Section 179 deduction was sometimes referred to as the “Hummer Tax Loophole,” because at the time it allowed businesses to buy large SUV’s and write them off. While this particular use (or abuse) of…
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Expense Reimbursements – Accountable Plan vs. Non-accountable Plan

Expense Reimbursements – Accountable Plan vs. Non-accountable Plan

Accountable Plans A plan under which an employee is reimbursed for expenses or receives an allowance to cover expenses is an accountable plan only if the following conditions are satisfied: there must a business condition for the expenses the expense must be in connection with performance of services as an employee the reimbursement must be…
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