Tax Tips

January 2018 updates

* Gross Receipts Tax rates increased for all of Santa Fe County. > See the new rates here * Albuquerque minimum wage increases to $8.95 effective 1/1/2018 ($7.95 if employer provides healthcare, $5.35 for tipped employees), details here. Santa Fe’s minimum wage remains at $11.09 until further notice. * Also effective 1/1/2018, the standard mileage rates for the […]

Automobile Expenses: Deduct Standard Mileage Rate or Claim Actual Expenses?

With the standard mileage at 53.5 cents per mile for 2017, it might be time to revisit what yields the more substantial deduction: the standard mileage rate for each business mile, or your actual car expenses. If this is the first year you have business use of an automobile, you don’t have to decide which […]

Employer Identification Number: When Do You Need One?

There are several instances when you would need to apply for a federal employer identification number (EIN). The most common instance is when you are operating a business and you have employees. If you are operating a sole proprietorship and you do not have any employees, your social security number is typically all you need. […]

Preparing for Your Tax Appointment: Get Organized, Save Time

Tax time seems to come around sooner each year, and if you’re like most people, you make a vow to be better prepared for next year. Well next year is here, and it’s time to gather together all those tax records you’ve been saving. You can help your preparer by sorting through your papers and […]

Working With Your Spouse: Is Your Spouse Your Employee?

One of the advantages of operating your own business is hiring family members. However, the employment tax requirements for family employees can vary from those that apply to other employees. There are a couple of different ways a married couple can operate a business together. If you operate a sole proprietorship and you hire your […]

Selling Your Business: Know the Tax Consequences Beforehand

The tax consequences of selling a business depend on whether you operate as a sole proprietor or a corporation. As a sole proprietor, selling your business means you are selling the individual assets of the business. The sale of a business is not usually a sale of one asset. Instead, some or all of the […]

Substantiating Business Expenses: Save Those Receipts

As a business owner, one of the most important things you should do is keep good records. Without them, the IRS may disallow some of the expenses you incur if it chooses your return for a closer look. Maintaining good records should be done throughout the year. Keeping receipts, credit card statements, bank statements, and […]

Looking for a New Job? Search Expenses Can Be Tax Deductible

If you are searching for a new job that is in the same line of work you currently have, you may be able to deduct some job-hunting expenses on your federal income tax return. Expenses are deductible even if you don’t get a new job. Here are some important facts to know about deducting costs […]

Maximizing deductions: Year-end strategies to save money

As the tax year draws to a close, many of you are thinking of ways to reduce your taxable income. Generally, this is accomplished by increasing your expenses for the year. For example, making a charitable contribution by check on December 31, 2017, will create a deduction on your 2017 tax return if you are […]

Request Form W-9 Before Payment

When non-employees perform work for you in your trade or business, it’s important to obtain a Form W-9, Request for Taxpayer Identification Number (TIN) and Certification, before paying them. Taxpayers use a Form W-9 to provide their correct TIN to the person who is required to file an information return with the IRS to report […]