Tax Tips

September & October Tax Deadlines

The following are tax deadlines due in September and October: September 16th is the deadline for the third quarter installment for individuals & corporations paying estimated taxes throughout the year. September 16th is the deadline for Forms 1120S (S Corporations) & 1065 (Partnerships) for S Corporations and Partnerships that requested a 6-month extension on their […]

September Tax Withholding Checkup

The best way to avoid an unpleasant IRS surprise next spring is to make sure that the correct amount of tax is being withheld from your paychecks. Here’s a simple way to do a September withholding checkup:   Step 1) On your pay stub for the pay period ending August 31 or September 1, find […]

Taxable Events that are reported to the IRS

All are aware of the traditional income sources like employee wages and business profits that must be reported to the IRS as taxable income.  However, there  are several other activities and transactions that the IRS classifies as potentially taxable. It is important to consider all of these “taxable events” when you prepare your returns. Some […]

How to Reduce Taxes when renting a bedroom in your home

Firms such as Airbnb have made bedroom rentals more common than just a few years ago. Depending on the length of the rentals and the people to whom you rent, the tax code treats your bedroom rental as one of the following: 1) A tax-free activity. 2) A bedroom rental that you report on Schedule […]

Business Meals: Q & A on the new tax rules

Here is some good news for business meals:  The Tax Cuts and Jobs Act (TCJA) removed the “directly related and associated with” requirements from business meals. The net effect of this change is to subject business meals once again to the pre-1963 “ordinary and necessary” business expense rules.  You are going to like these rules. […]

Business or Hobby

If you derive income from any activity where you are not an employee, from occasional dog sitting to playing guitar for tips at your local coffee shop, then the IRS requires you to classify the activity as either a hobby or a business on your tax returns. Importantly, this decision must be based on IRS […]

Tips to consider on Estimated Tax Payments

The IRS states that federal taxes must be paid on a “pay as you go” basis, not just at the end of the tax year. This means that if you receive significant income that is not subject to withholding, it is likely necessary for you to make estimated tax payments throughout the year. In addition […]

Actual Vehicle Expense Deduction vs Standard Mileage Deduction

If you use your car, van or truck for business purposes, you may be able to claim a vehicle expense deduction on your tax return. You may either use the standard mileage rate or report the actual expenses associated with business uses of the vehicle. Actual expenses include gas, repairs, insurance and depreciation. Each expense […]

IRS Private Debt Collectors

The IRS began a program a few years ago where they assign certain cases of overdue tax debts to private debt collectors. If this happens to you the IRS will give you (and your tax representative) written notice that your account is being transferred to the private collection agencies. Watch out for scam phone calls […]

20% Qualified Business Income Deduction

The 2017 Tax Cuts and Jobs Act (TCJA) created a 20% federal tax deduction for many self-employed taxpayers and small business owners (i.e., not wage earners but those with business income).  This is called the Qualified Business Income (QBI) deduction which applies to income derived from “pass-through entities”—businesses whose earnings are reported on individual owners’ […]