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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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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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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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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According to the IRS, your property is placed in service when it is both ready and available for rent. If you recently purchased a property you hope to rent out for passive income, this is critical information for you. You ideally want to have the property “in service” to reap the best tax benefits. Usually,…
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As you start to invest in more real estate, you might ask yourself, should I setup a bank account for each property? The answer is you will likely want to begin using one account for each property for simplicity. However, you cannot have 10 bank accounts for 10 properties, it is just too much to…
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Finding the right real estate accountant is something a lot of real estate investors (both new and established) have a difficult time with. An accountant is an undeniably important member of your team that can play a massive role in your ability to find and leverage as many tax benefits as possible (of which there…
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Working in the entertainment industry is quite the accomplishment but you can’t get caught up in the glory. The industry is very cut throat and having a knowledgeable and trusted Entertainment Accountant is MUST. Whether you work in the film industry as an actor/actress or behind the scenes with videography and photography the growing needs…
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If you are self-employed, your deduction for the business use of your vehicle could reduce your tax bill by thousands of dollars! Tracking your mileage is absolutely necessary whether you use the actual expense method or standard mileage allowance for claiming the deduction. Two Methods for Claiming the Car Deduction: Actual expense method Mileage allowance…
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