The IRS has announced it is making a midyear increase to the optional standard mileage rate. As of July 1, 2022, the standard mileage rate for business travel will be 62.5 cents per mile for the last half of the year (up from 58.5 cents per mile for the first half of 2022). Typically, this […]
Changes to the Meals and Entertainment Deduction
Due to the changes from the Tax Cuts and Jobs Act regarding meals and entertainment expenses, we suggest you reevaluate your bookkeeping system and account names for 2018. If you currently only have one account for all meals and entertainment expenses, you may want to split the account into three accounts: Entertainment Expense, which are […]
Year-End Gifts To Charity
As we approach the end of the year, many of our clients have asked us questions about year-end gifts to charity. The IRS gives us some good guidance in IR-2015-134. They have even included some reminders that I’ve copied below: Qualified charities. Check that the charity is eligible. Only donations to eligible organizations are tax-deductible. […]
Timing Strategies Could Become More Powerful In 2017
Projecting your business income and expenses for this year and next can allow you to time when you recognize income and incur deductible expenses to your tax advantage. Typically, it’s better to defer tax. This might end up being especially true this year, if tax reform legislation is signed into law. Timing strategies for businesses […]
Will Congress Revive Expired Tax Breaks?
Most of the talk about possible tax legislation this year has focused on either wide-sweeping tax reform or taxes that are part of the Affordable Care Act. But there are a few other potential tax developments for individuals to keep an eye on. Back in December of 2015, Congress passed the PATH Act, which made […]
Summer Is A Good Time To Start Your 2017 Tax Planning
You may be tempted to forget all about taxes during summertime, when “the livin’ is easy,” as the Gershwin song goes. But if you start your tax planning now, you may avoid an unpleasant tax surprise when you file next year. Summer is also a good time to set up a storage system for your […]
Hire Your Children and Save Taxes
It can be difficult in the current job market for students and recent graduates to find summer or full-time jobs. If you’re a business owner with children in this situation, you may be able to provide them with valuable experience and income while generating tax savings for both your business and your family overall. Shifting […]
Tax Consequences of Bartering
Bartering might seem like something that happened only in ancient times, but the practice is still common today. And the general definition remains the same: the exchange of goods and services without the exchange of money. Because no cash changes hands in a typical barter transaction, it’s easy to forget about taxes. But, as one […]
Important Tax Dates For 2017
While April 15 (April 18 this year) is the main tax deadline on most individual taxpayers’ minds, there are others through the rest of the year that are important to be aware of. To help you make sure you don’t miss any important 2017 deadlines, here’s a look at when some key tax-related forms, payments […]
Make Sure The IRS Won’t Consider Your Business To Be a “Hobby”
If you run a business “on the side” and derive most of your income from another source (whether from another business you own, employment or investments), you may face a peculiar risk: Under certain circumstances, this on-the-side business might not be a business at all in the eyes of the IRS. It may be a […]