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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Solar Tax Credit

Do I Qualify for the Solar Tax Credit? – LNK Tax Group Santa Clarita Tax Accounting

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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I am a business owner. Do I need to file 1099-MISC for my independent contractors?

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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online pod cast streaming and taxes

Are the Donations I Receive from Online Streaming Taxable?

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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outsourcing bookkeeping and accounting services

When should you consider outsourcing bookkeeping and accounting services?

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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Accounting Business Services

Should you separate your business and personal bank accounts?

A very common question that comes up, particularly with new small businesses, is whether you should separate your business bank account from your personal bank account. The general rule of thumb is that you should not comingle your bank accounts and here is why. It prevents you from using the business funds for a personal…
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Paycheck Protection Program PPP Loan

PPP Loan Forgiveness – LNK Tax Group

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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Qualifying as a Real Estate Professional and Deducting Passive Losses

Qualifying as a Real Estate Professional and Deducting Passive Losses

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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Why You Should Outsource Your Bookkeeping and Accounting – LNK Tax Group

Why You Should Outsource Your Bookkeeping and Accounting – LNK Tax Group

Unless you have more than $5M in annual revenues (more likely, less than $10M) it will be more cost effective to outsource your bookkeeping and accounting needs. Outsourcing is more flexible, which will allow you to scale your services up or down as your business needs change and you do not have to pay a…
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Maximizing Deductions - Meal Expense

Maximizing Deductions – Meal Expense – LNK Tax Group

50 Percent Deductions: • Lunch with customer, client or employee associated with a business discussion Taxes and tips relating to a meal or entertainment activity • Room rental for a dinner or cocktail party (assuming the event met the business relation test) 100 Percent Deductions: • Transportation costs to and from a business meal or…
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