If you run a small business, you already have a full plate. The last thing you need is for the IRS to question any of your business expense deductions. But it could happen. And that’s why having records that prove your expenses is so important. Even deductions for routine business expenses could be disallowed if […]
Tax
Payroll Taxes: Who’s Responsible?
Any business with employees must withhold money from its employees’ paychecks for income and employment taxes, including Social Security and Medicare taxes (known as Federal Insurance Contributions Act taxes, or FICA), and forward that money to the government. A business that knowingly or unknowingly fails to remit these withheld taxes in a timely manner will […]
What is Deductible when Your Trip is for Both Business and Fun
Business owners who travel out of town on business sometimes like to extend their trips and take a little time to relax and see the sights. When a trip is partly for business and partly for pleasure, various expenses may still be deductible. Domestic Travel A self-employed individual whose trip is primarily for business may […]
Making Sense of the 2018 Standard Deduction
Donald Trump’s tax reforms have attracted, if nothing else, a lot of attention and the usual political controversy that follows his administration when he announces changes. However, the 2018 Standard Deduction is not reserved only for the wealthy and/or high-income earners. It covers 70% of all taxpayers. So, we’ve created a succinct overview of the […]
What is Qualified Business Income (QBI) and Why Does It Matter?
The new Section 199A provides self-employed taxpayers the ability to deduct up to 20% of their Qualified Business Income (QBI) on their tax returns. In general, QBI is net income that is received from a Qualified Trade or Business. However, there are some exclusions, the most common of which are capital gains, dividend and interest […]
2018 Tax Changes: Frequently Asked Questions
The Tax Cuts and Jobs Act (TCJA) raises many questions for taxpayers looking to plan for the coming year. Below are answers to some of them. Do I need to adjust my withholding allowances, given that tax brackets have changed? You may notice a change in your net paycheck as a result of the tax […]