When we perform our clients’ bookkeeping, it is quite common to see they use their personal credit cards for business expenses. Since they use the cards exclusively for businesses only, they pay the balance dues by business checking accounts. Are … Read More
Taxes
Non-taxable rental income?
In general, rental income is taxable. There is exception. I am happy to explain it to you. If you rent out your home, partially or the whole house, for less than 15 days during the year, this short-term rental income … Read More
Can Meal be 100% Deductible Part 2
If you like the post about deducting overtime meal 100%, you will love this post because I want to show you when you can deduct meal 100%. Again, in general, if you take employees out for meeting, the business meal … Read More
Can Meal be 100% Deductible?
Most of the small business owners know business meal is only 50% tax deductible. Is there any exception to deduct 100%? The answer is YES. I am going to share one of the exceptions with you today. Dinner for Employee … Read More
Is Vacation Tax Deductible?
Whether you run a small business, or own an investment property, it is quite common to have overnight business trip. You know the travel expense is tax deductible. However, when it is not 100% for business, is combining some personal vacation … Read More
Can Business Clothes Be Deductible?
A lot of small business owners need to wear nice suits to meet with clients. It seems necessary and ordinary to spend such money on clothes to conduct business. Accordingly, can we deduct it as uniform expense? The answer to … Read More
Solar Tax Credit
Solar Tax Credit If you install a solar water heater or solar system for supplying your electricity, you can get 30% tax credit to the cost (the cost of the system plus the installation cost after any rebate from electric … Read More
New tax due date for LLC and Corp in 2017
If you are a LLC owner, please be aware of the new due date of 2016 LLC tax return. It is effective in 2017 filing season. Instead of filing by Apr 15, 2017 with extension to Sep 15, 2017, IRS … Read More
2016 S-Corp owner’s health insurance, deductible?
Question: Can a S-Corp owner deduct his or her health insurance as business expense? Answer: Yes or No! The answer is YES if you do the following properly: 1. S-Corp pays for the health insurance either by group plan or … Read More
Write off the equipment cost of depreciating it?
When we perform bookkeeping and prepare tax returns, our clients often ask us if we should depreciate the equipment over 5 years or simply write off in the year the equipment is in use. The answer is it depends on … Read More