May 8th, 2012
It happens every year. A client wanders in with a shoe box and a prayer and wants me to put a miracle out of my hat. Then they get depressed or angry or both because they have to pay tax, sometimes a lot of tax.
So you wanna know the secret to getting every stinking tax deduction you are entitled to? Rule No. 1. Keep good records. It is as simple as that. Read the rest of this entry »
Tags: best practices, business taxes, co-mingled finances, digital copies of receipts, digital record keeping, digital records, financial fitness, follow a system, hire professionals, hire professionals before you need them, keep a schedule, limitations of professional services, mileage log, organize, personal responsibility, personal taxes, record keeping, separate business and personal bank accounts, separate business and personal credit cards, separate business and personal records, separate finances, tax deductions, tax records, taxation, taxes, US tax, use a mileage log, you are responsible
Posted in Business Taxes, General Business, General Individual, Individual Taxes | No Comments »
July 23rd, 2011
The whole tax return landscape is changing. Big things are happening to protect the average taxpayer from shoddy tax return preparers.
Until 2011, there was no regulation of unlicensed tax return preparers. Anybody could wake up in the morning and decide to do
taxes for money. At the same time the government subjected Certified Public Accountants, Attorneys, Enrolled Agents, Enrolled Actuaries, Enrolled Retirement Plan Agents, and Appraisers were to strict regulation via Circular 230; licensed tax preparers could face severe penalties and lose their licenses for if convicted of certain kinds of crimes, if they did not file their taxes, if they gave marginal tax returns or gave bad advice. That has changed. Now the IRS will regulate all tax return preparers.
Read the rest of this entry »
Tags: Circular 230, EA, enrolled agent, PTIN, RTRP, Tax Preparer, tax professional, Tax return preparation news, tax specialist, what is an EA, What is an enrolled agent, what is an RTRP
Posted in Business Taxes, Individual Taxes, Other Information | No Comments »
July 21st, 2011
The Affordable Care Act changed the way FSAs, HRAs, MSAs & HSAs handle reimbursement for over-the-counter (OTC) drugs; after December 31, 2010 you can no longer use these accounts to pay for OTC drugs without a prescription. The IRS will only allow prescribed medicines or drugs (including prescribed OTC medicines and drugs) and insulin (even if purchased without a prescription) as qualifying medical expenses subject to preferred tax treatment. Read the rest of this entry »
Tags: Archer MSA, distribution, flexable spending account, FSA, health reimbursement arrangement, health savings account, HRA, HSA, medical savings account, MSA, OTC drugs, OTC medicine, over-the-counter drug, over-the-counter medicine, Patient Protection and Affordable Care Act, prescribe, prescription, reimbursement
Posted in General Individual, Other Information | No Comments »
July 14th, 2011
If you are in business, you probably use your car, truck or SUV for some business purpose. Indeed your business may have purchased a vehicle. How much of the purchase price you can deduct as a business expense during any given year is a complex calculation, called depreciation, which congress has further complicated with the addition of things like 100% Bonus Depreciation. This blog talks how you depreciate a new car placed in the service in 2011 including what to do about that pesky 100% Bonus Depreciation. Read the rest of this entry »
Tags: 2011 tax depreciation, automobile, bonus depreciation, car, depreciation, how to depreciate, IRS safe harbor method, listed property, MACRS, truck
Posted in Business Taxes, Individual Taxes | 1 Comment »
July 10th, 2011
Do you remember when you could estimate the amount of a certain amount of giving to a charity without having a lot of documentation? “I estimate I dropped $20 to the Salvation Army kettle, and another $5 per week to the church collection, plus donated some clothes and other items valued at around $50… call it $330.” Those days are long gone. Read the rest of this entry »
Tags: cash donations, charitable deduction, Charity, conteporaneous substantiation, donation of property, non-cash donations, requirements for deduction, substatiation of charitable contributions, what do I have to keep?, written acknowledgement
Posted in Business Taxes, Individual Taxes | 1 Comment »
