What you need to know about accountable and nonaccountable plans
If you have employees, you can reimburse or give them an advance or allowance for business expenses, including but not limited to ordinary and necessary transportation, business entertainment, travel, meals and lodging expenses. These types of payments can either be treated under an accountable or nonaccountable plan. Below, are the requirements for both types of plans.
The holiday season is upon us. Even if we aren't following traditions of the season, giving gifts to clients and employees makes everyone involved feel good. Gifts that range from flower arrangements to gift cards to personalized trinkets will all leave a lasting impression on the receiver and as well as the giver. But with each gift comes a hidden cost - the IRS's rules for what is deductible and how to list it on your tax return.
If you give gifts in the course of your trade or business, you can deduct all or part of the cost. Following are the limits and rules for deducting the cost of these gifts.
Having a tax pro saves you time and money
Like it or not, tax season comes around each and every year. And with it comes annual changes to the tax law, making it more and more complicated. Therefore, it’s important to rely on a tax professional to guide you through filing your taxes. This not only saves you time, but also money.
I welcome the opportunity to serve you year after year. Below, I’ve detailed some of the reasons why it’s important to stick with a tax professional rather than self-preparing your return.
What you need to know about accountable and non-accountable plans
If you have employees, you can reimburse or give them an advance or
allowance for business expenses, including but not limited to ordinary and necessary transportation, business entertainment, travel, meals and lodging expenses. These types of payments can either be treated under an accountable or non-accountable plan. Below, are the requirements for both types of plans
One of the more popular business expenses for home-based businesses is the home office deduction. The IRS code states that the space used for the home office must be used exclusively and regularly for the operation of the business.
No other activity can be conducted in the home office to qualify for the tax deduction. If the taxpayer uses the room for any other purpose (such as a guest bedroom or place for students to prepare their homework) then the home office deduction is not allowed.
Tips for keeping yourself safe from threats
There is no shortage of scams targeting both tax professionals and taxpayers. Due to the recent rise in identity theft cases, it’s important to be proactive about protecting yourself from these threats. The information below details some steps you can take to keep your sensitive data safe from identity theft.
Quick Protection Tips
Read on for some tips to protect yourself from becoming a victim:
Receiving a tax bill or huge refund?
In some years you may owe the IRS money; in other years you may receive a huge refund. If this happened to you recently, it might be a good time to reassess whether you’re withholding the right amount from your paycheck. For returns filed in 2016, the average federal tax refund was $2,860. Sounds great, right? But instead of giving the government an interest-free loan, you could have been using that money throughout the year.
Examine the amount of federal and state withholding that’s being deducted from your paycheck.
I can help you determine whether the amount withheld is too low, resulting in tax due (with possible penalties), or too high, resulting in a larger than necessary tax refund. Together, we can fine-tune your withholding to ensure that you get the best result for your situation next year.
Reduce your taxable income while building a nest egg
Investing the maximum allowable contribution per year to a retirement account is a great way to reduce your taxable income. Below, are several types of accounts that are available to taxpayers.