Year-end Tax Savings with Depreciation
As we approach the end of the year, it’s a good time to think about whether your business needs to buy business equipment. If so, you may benefit from the Section 179 depreciation tax deduction. The election provides a tax windfall to businesses, enabling them to claim immediate deductions for qualified assets, instead of taking…
Virtual Currency Transactions – Tax Treatment
Whether you’ve invested in Bitcoin and sold it at a profit or loss or received it for services performed, you’ll need to report it on your tax return. Here’s what you should know: Background Prior to 2014, there was no IRS guidance and many people did not understand that selling virtual currency was a reportable…
Qualified Opportunity Zones: Tax Free Real Estate Investments
A well kept secret found in the Tax Cuts and Jobs Act of 2017 is the Qualified Opportunity Zones (QOZ), a program designed to boost development in economically distressed communities. In exchange for new investments in these communities, investors receive preferential tax treatment. As traditional as it sounds, the QOZ program is far from a…
A Short Guide to Deducting Travel Expenses
If you have to travel as part of being self-employed, you know traveling costs can add up fast. Fortunately, there are a few tax breaks available to offset those expenses. Follow this short guide to learn how to lower your tax bill by deducting your business travel expenses. Business mileage vs. business travel expenses As…
Year-End Tax Checklist
Maximize Your Retirement Account Contributions Now is the time to maximize contributions to your retirement accounts. If you participate in a company sponsored 401(k) plan, try to meet your employers’ matching contribution at the very least so you’re not leaving “free” money on the table. Additionally, you may want to increase your own contribution in…
Can I Still Deduct My Holiday Party?
The holiday season is a great time for businesses to show their appreciation for employees and customers by giving them gifts or hosting holiday parties. Before you begin shopping or sending out invitations, it’s a good idea to find out whether the expense is tax deductible. The Tax Cuts and Jobs Act reduced certain deductions…
You Still Have Time to Set Up a Retirement Plan For 2018
If most of your money is tied up in your business, retirement can be a challenge. So if you haven’t already set up a tax-advantaged retirement plan, consider doing so this year. There’s still time to set one up and make contributions that will be deductible on your 2018 tax return. More Benefits Not only…
Deducting Business Use of Your Home Doesn’t Have to be Complicated
With the proliferation of telecommuting, home offices are now so common that claiming it on your taxes is no longer complicated and subject to IRS scrutiny. Under the “safe harbor” option you can deduct, based on square footage of your home office, $5 per square foot (up to a maximum of $1,500). The space must…
Personal Expenses versus Business Expenses
Generally, you cannot deduct personal, living or family expenses. However, if you have an expense for something that is used partly for business and partly for personal purposes, divide the total cost between the business and personal use. You can deduct the business portion. For example, if you borrow money and use 70 percent of…