Tag Archives: Business Taxes

As recent tax initiatives have been aimed at collecting more tax revenues from millionaires, you may ask, just who are these millionaire taxpayers? According to research by the Tax Foundation, a group that advocates for lowering taxes, many of these millionaire taxpayers are owners of small businesses. It is more likely for partnership and S corporation small business owners to be million taxpayers than sole proprietors.  Based on IRS data, the Tax Foundation calculated that 51% of partnerships and S corporations reported income of $1 million or more, as compared to 6% from sole proprietors. The study also found that … Click to Read More

You’ve traveled for business, and now it is time to figure out your business travel deductions. What is “ordinary and necessary” and can be deducted on your business tax return? Transportation Flight, train, and car travel to and from the convention or meeting is deductible. Travel by boat, such as an ocean liner or cruise ship, has a daily limit of twice the highest federal per diem rate allowable. Cabs are also deductible to and from the airport and conference or meeting. Lodging Hotel costs for days that you attended the conference and reasonable stays before and after are deductible. … Click to Read More

If you’ve traveled for a conference or visited a client, what can you deduct as costs for your business? Here are some tips to help you separate your personal and business travel expenses, so your business tax preparation will not be hampered by what to count. The purpose of the trip must be primarily business oriented. You may do non-business activities such as sightseeing while on trip, but the main focus must the primary reason for travel. For conferences, travel within North America is deductible if it can be shown that your directly attendance benefits your business. There are special … Click to Read More

You’ve started your own business, and now it’s time to file your first tax return. Even if you hire a business tax preparation specialist, you will need to have your files in order and make some decisions on how you want to file your return. In continuation from last week’s post, here are 3 more tips to help with your first business tax return. Figure out which depreciation method you want to use. The IRS allows a deduction in your first year of up to $100,000 for most equipment and furniture purchased for your business. The alternative is writing off … Click to Read More

The assistance of a qualified business tax resolution professional can be a valuable tool in attempting to resolve any type of tax issue. However, selecting a reputable tax professional can be a difficult task in itself. It is important to verify any and all credentials before hiring someone to help. Many individuals and companies who advertise business tax resolution services are actually marketing agents and salespeople with no professional qualifications. Tax law is intricate and the policies and procedures of the IRS can be so complicated that it takes an individual who is both knowledgeable and experienced to successfully negotiate … Click to Read More

There has been some confusion with the what is included on the new Form 1099-K form and what belongs elsewhere. Here is an update for clarification on credit card payments that may be useful in your business tax preparation. On the directions to Form 1099-MISC, the IRS has made it clear that payments made with a credit card or through any third-party payer, are not reported on Form 1099-MISC. The indicated amounts are now reported on Form 1099-K. As a result, if a business pays a service provider with a credit card, debit card, gift card, or electronically via a service, the … Click to Read More

While taxes for 2011 are due in April, it is important to take care of any IRS notices and bills from past years that were not paid when due, called back taxes. Here are some frequently asked questions about back taxes in relation to business tax preparation. What back tax issues are commonly encountered by small businesses? · Due to the complexity of tax law, many small business owners do not know how to use available deductions to reduce their lax liability and therefore end up with tax balances that are more than the business can afford to pay. · With the current … Click to Read More

Due to the complexity of tax law as it applies to self-employed individuals, the best tax strategy available is often to enlist the help of a qualified tax professional to handle all business tax preparation. Many self-employed taxpayers do not know how to use available tax deductions to reduce their tax liability and therefore end up with tax balances that are more than they would otherwise be required to pay. In addition, self-employed individuals have certain tax obligations which, if not met according to the strict guidelines outlined in governing tax codes, can result in unwanted consequences including interest, penalties, … Click to Read More

When starting or expanding a business, it is important to know how to deal with employment taxes. While they seem to be automatic when you are an employee, employment taxes are calculated and withheld by the businesses and then paid to the IRS. Here is more information on employment taxes for your business to help your business tax preparation go smoothly. What are employment taxes? Employment taxes are a variety of federal, state, and local taxes that must be withheld by business owners from the paychecks of their employees. What types of employment taxes are businesses required to pay? Employment … Click to Read More

Are you never quite sure what original information to save after you file your annual tax return? In this article, we discuss what business tax documents you must keep and how long to keep them. Good bookkeeping is difficult to manage for many businesses. Let’s face it—your priority is to keep the business running from day to day. It might not seem like it but now, as you prepare to file your business taxes for 2011, is actually the perfect time to develop good record keeping habits. Keeping organized records throughout the year is vital to making sure you have … Click to Read More