Posts Tagged ‘Taxes’
What is Depreciation and How Does It Affect My Taxes?
You’ve likely heard the terms depreciate and depreciation when it comes to tax matters. But do you really understand the basics of these concepts and how they apply to your taxes? Depreciation Defined In layman’s terms, the basic concept of depreciation revolves around an income tax deduction. This IRS write-off allows a taxpayer to recover the cost of certain…
Read MoreWhat the IRS Does Not Mention About Crowdfunding and Taxes
In Information Letter 2016-0036, released June 24, the IRS explains general rules that might apply to someone’s receipts of funds via a crowdfunding platform. It doesn’t mention any websites, but examples include Kickstarter and GoFundMe. The IRS notes the broad rule of Section 61 that receipt of funds is likely to be taxable gross income.…
Read MoreHow to Manage and Pay Tipped Employees in Restaurants
In the restaurant industry, tips are more than something you’d associate with a homespun tip jar by the cash register—they’re a primary source of income for tipped employees. The catch is tips are also taxable income with specific responsibilities for employees and employers. Tips Are Not Small Change In its research, the National Restaurant Association (NRA) states that restaurants…
Read MoreSavings in the Fast Lane: Tax Tips for Uber Drivers
Are you one of the millions of Americans using a personal vehicle to make money as an Uber driver? It has become easy to earn some extra cash on the side—or even with full-time hours—working for car sharing services like Uber and Lyft. While seeing dollar signs in your eyes can be a reality, you…
Read MoreThe Top States for Low and No Corporate Income Tax
There are a number of considerations that a business owner may take into account when deciding upon the best state in which to incorporate. One factor that is often important to business owners is the taxes that will be imposed on the newly formed corporation. Both the type of taxes for which a business is…
Read MoreWhat You Need to Know About Payroll Tax Deadlines
From the moment you hire your first employee, you quickly realize there’s a lot more to payroll than simply issuing a check. For example, there are federal, state and even local taxes that need to be deposited (paid) and reported. Of course, just to keep things interesting, there’s an accompanying maze of deadlines. But don’t…
Read MoreShould You Buy or Lease a Car for Tax Deductions?
Buying or leasing a car can be a difficult decision for both individuals and businesses. A number of factors play into tax deductions for a business car. Things such as the definition of business use, the types of expenses claimed and methods of calculating deductions play an important role, in addition to whether or not…
Read More6 IRS Payroll Tax Penalties That Will Hinder Your Business Growth
This post is written for American companies. ???? If you are a Canadian business, please refer to Remitting Payroll Deductions – Penalties For Missing A Payment. An IRS penalty is an unnecessary financial burden that’s completely avoidable. We know how hard it is to run a small business. You can work through the night, over the…
Read MoreLLC or Corporation: What’s Better?
Many entrepreneurs just starting a business or considering changing their current business’ structure come to us wondering: What’s the difference between an LLC and Corporation? Which one is a better option for me? It’s an understandable question, and an important decision to make for the success of your business. This post will explain what you…
Read More5 Things to Do Now That Tax Season is Over
The 2016 tax season has finally come to a conclusion. While you may be done with your federal income tax duties for this year, there are several items you should add to your to-do list so that you can take advantage of this time before next year’s tax season arrives. 1. File your tax return(s)…
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