As tax filing season approaches, the Internal Revenue Service reminds taxpayers there are things they should do now to get ready for filing season.
For most taxpayers, Dec. 31 is the last day to take actions that will impact their 2017 tax returns. For example, charitable contributions are deductible in the year made. Donations charged to a credit card before the end of 2017 count for the 2017 tax year, even if the bill isn’t paid until 2018. Checks to a charity count for 2017 as long as they are mailed by the last day of the year.
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.