The Best Vehicle Expense Method

Posted on: July 15, 2015

The Best Vehicle Expense Method Choosing the Best Vehicle Expense Method: Businesses generally have the option of choosing between one of two methods for documenting vehicle expenses and reporting them on their tax return. With the actual expense method, the business documents and reports all of a vehicle’s operating expenses including gas, oil, scheduled maintenance and repair.  In contrast, the standard mileage method involves deducting a set mileage amount for each mile a vehicle is driven. Although there are some restrictions on the use of the standard mileage method, most businesses have the option of selecting whichever vehicle expense method provides … [Read more…]

International Data Exchange Service

Posted on: May 11, 2015

International Data Exchange Service Bolsters FATCA The International Data Exchange Service (IDES) is an electronic delivery system that allows both financial institutions and tax authorities in host countries to exchange FATCA data with the Internal Revenue Service. If predictions hold true, this new data exchange system, which went into effect in January of this year, will greatly enhance the effectiveness of the Foreign Account Tax Compliance Act (FATCA). According to IRS Commissioner John Koskinen, the International Data Exchange Service is a “milestone in the implementation of FATCA.” Koskinen maintains that increasing the ability of the IRS to detect hidden foreign assets will not only increase foreign tax … [Read more…]

Small Business Tax Deductions

Posted on: April 22, 2015

Small Business Tax Deductions Being a small business owner has its challenges and rewards. Business tax deductions can be both. While many tax deductions are available to small businesses, it requires both knowledge and commitment on the part of the business owner or a business tax professional to keep up with what deductions are available and apply them to their maximum advantage. To do otherwise, automatically means that the business will be paying a larger tax bill than they would otherwise need to pay. Some of the common business tax deductions are discussed below. Office Supplies – The purchase of … [Read more…]

Cadillac Tax on the Horizon

Posted on: March 16, 2015

Cadillac Tax on the Horizon Beginning in 2018, employers who offer their employees health insurance coverage that costs in excess of a certain dollar amount will be required to pay a 40% tax on the costs associated with providing the plans. Currently there is no ceiling on the tax deductible amount employers can claim for providing health insurance for their employees. This will continue up until January 1, 2018 when the new tax is instituted. This proposed tax is appropriately named the “Cadillac tax” because it targets only high end policies, individual plans that cost more than $10,200 per year … [Read more…]

TurboTax and Tax Fraud In The News

Posted on: February 18, 2015

TurboTax and Tax Fraud In The News We are only few weeks into tax season and, already, there are more tax fraud stories to report.  Although the details remain cloudy, it seems that TurboTax had a security breach a few weeks back, causing the FBI to launch an investigation. Intuit insists that data was stolen from its TurboTax software system by groups on the outside, comparing it to other large company breaches that have recently been in the news. Whatever the cause, the IRS is taking it seriously just as they have other “questionable refund investigations” and identity theft issues … [Read more…]