If you have any unused household items or clothes but they are in good used condition, please consider to donate them to a qualified charity. The tax benefit of non-cash donation is equivalent to cash donation! In general, you can deduct … Read More
Taxes
Tax benefit of home use office for the owner of corporation
Mystery: Your CPA may inform you that there is no home use office form 8829 in corporation tax return. Accordingly, it is not possible to claim the home use office expenses. Answer: This is not true as long as your company … Read More
2016 tax benefit for business use vehicle
If you need a new vehicle for business use, you do not want to overlook the tax benefit. Consult your CPA to ensure you can enjoy the tax benefit. The good news is if you are buying a new or … Read More
Tax benefits in hiring your kids to work
I have a business client who has been paying allowances to his kids in exchange for their work during the summer time for years. The business client thought it would have been incurred more tax (payroll tax and income tax) … Read More
Unfiled tax returns? Back Taxes and penalties?
If you have not filed tax returns which are past due, you have to take action now to fix it. IRS might react slowly and the problem of those late filing seems not hurting you right now, but it could … Read More
Can S-Corporation save you tax?
If your sole proprietorship business brings you about $100,000, you may want to read this article as you may be able to save $4,000 self-employment tax annually! Sole Proprietorships As you may know Sole proprietorship is not a separate legal … Read More
Who you can claim as your dependent?
Claiming a dependent gives you a valuable tax break in dependency exemption, which works just like a tax deduction. The exemption amount for each dependent is $4,000 for year 2015. It is adjusted each year for inflation, and is also … Read More
Why Do Small Businesses Need Financial Statements?
There are few questions more shocking to an accountant than “Why do we need financial statements?” Years of specialization and familiarity lead most accountants to take the answer to this question for granted. Indeed, when asked this question, many accountants … Read More
What Can I Deduct as a Business Expense?
In his days as a lawyer traveling the Eighth Judicial Circuit, Abraham Lincoln once asked an adversary in court, “How many legs does a sheep have?” The man replied, “Four, of course,” Lincoln went on to ask “And if you … Read More
Why Incorporate Your Business
When starting a small business, you have a few choices on how to legally structure it. You can organize your business as a corporation, sole proprietorship, or a partnership. What you ultimately choose will have a significant effect on the … Read More