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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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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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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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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Federal Tax Credit A federal tax credit for the purchase and installation costs of a residential solar system is fading away. After being 30% of the cost for several years through 2019, the credit amount drops to 26% in 2020 and then 22% in 2021, the final year of the credit. The solar tax credit…
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If your small business regularly uses independent contractors or just hires a gardener occasionally, you may need to file a Form 1099-MISC with the IRS. 1099-MISC’s help the IRS prevent tax evasion by creating a record of income that may otherwise go unreported. For that reason, there are steep penalties, including fines up to $550…
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Did you know that if you are a US citizen and you are earning any income from streaming you might be on the responsible for paying taxes on the donations you receive? Despite their misleading name, donations are not tax free like the kinds of donations you give to a charity. They are taxable income!…
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Effective Management of Business Finances Most small business owners and entrepreneurs juggle every aspect of business management, from administrative tasks to bookkeeping and accounting duties. Many small business owners and entrepreneurs reach a point where managing every task becomes overwhelming and an ineffective use of time. Effective management of business finances is critical for reporting,…
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Borrowers who received Paycheck Protection Program (PPP) loans under the Coronavirus Aid, Relief, and Economic Security (CARES) Act are asking their tax professionals if and how they will qualify for PPP loan forgiveness. There is uncertainty over some of the program details. Organizations. especially small to medium sized businesses, worry about meeting the loan forgiveness…
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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…
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