Tax Tips

Meals and Entertainment Expenses

Entertainment expenses that are both ordinary and necessary in carrying on a trade or business may be deductible if they meet one of the two tests: The directly related test, or The associated test Directly Related Test To meet the directly related test, you must show that the main purpose was the active conduct of […]

Start-up Basics

If you have an entrepreneurial spirit and dream of becoming your own boss, you may eventually look into starting your own business. Many people have the desire and solid ideas for starting a business venture, but may either lack the courage to take the first step or simply don’t know where to start. Here are […]

Choosing a Business Entity

If you’re starting a business, one of the most important decisions you’ll make is choosing what type of entity to operate as. Be sure to weigh your options, because an informed decision at the beginning can save you a great deal of time and expense later. Following is a list of the different entities. Sole […]

Applying Early for Social Security Benefits

Early retirement is an option for many taxpayers. However, before making the decision, you need to be aware of a few facts. It’s important to understand that the more years of work you put in after the age of 62 (the earliest possible social security retirement age), the more social security benefits you’ll have to […]

IRS Alerts Payroll, HR Professionals: New W-2 Phishing Scheme

The Internal Revenue Service recently issued an alert to payroll and human resources professionals to beware of an emerging phishing email scheme that purports to be from company executives and requests personal information on employees. The IRS has learned that this scheme – part of the surge in phishing emails seen this year – already has claimed […]

Saving Records

Once you file a tax return, there is no need to keep the records, right? Unfortunately, that perception is wrong. The main reason to save tax records is to substantiate the information reported on the tax return. The statute of limitations for most federal tax returns is three years. This is extended to six years […]

Contact From the IRS

The IRS normally communicates with taxpayers by letter, but other types of correspondence occasionally occur also. There are a variety of reasons the IRS may contact you. Some are: To ask minor questions or seek additional information To send a refund To notify you of an adjustment on your return To confirm an address change […]

Medical Expense Deductions: What You May Not Know

On occasion, clients will have certain medical expenses that seem obscure but are in fact tax deductible. Some of these deductions might surprise you: Lasik eye surgery Wigs for those dealing with hair loss Breast pumps Remedial reading for dyslexic children In-vitro fertilization treatments Pregnancy tests Hormone therapy medications Smoking cessation medication/programs Acupuncture Alcoholism treatment […]

Investing in Rental Property: Things To Know About Income & Deductions

Investing in rental property can be a smart financial move, but when it comes to your federal tax responsibilities, it’s important to be aware of what is considered rental income and the associated expenses that can be deducted from your rental income. What’s considered rental income? Anything received as rent must be reported as part […]

Paying Estimated Taxes: The Who, What, When, Why, Where

Why pay estimated tax? Estimated tax payments are used to pay tax on income that is not subject to withholding. This includes income from self-employment, interest, dividends, alimony, rent, gains from the sale of assets, prizes and awards. You may also have to pay estimated tax if the amount withheld from your salary, pension or […]