The New Year is fast approaching and it is so important to take some time to look back at what financial decisions we made over the past 12 months and to reflect on what went right and what mistakes we do not want to repeat. Here are my tips to end 2018 and to start the New Year off right:
#1) If you have employees, you will have until January 31, 2019 to get them their W-2's and 1099's. If we are taking care of your books and/or payroll, please get us updated information as soon as possible. It is pertinent that we do not miss the January deadline. For contract labor or "subs" you are not required to issue them a 1099 unless you paid them more than $600 in total for the year.
#2) Get your bookkeeping for 2018 up to date and completed. If you own a business and you have inventory, now is the time to get an accurate count. Make sure all your expenses and income are accounted for so that you do not miss out on crucial tax benefits of operating a business.
#3) Have any business losses? Losses happen and is all part of the entrepreneurial game. Without some risk, would there be much appreciation for the reward? If your business didn't see much profit in 2018, it may provide you a tax break to help with cash flow. If your business had more expenses than income, tax refunds from previous years for that loss may be available. Check with my office if this is your situation.
#4) Pull together all those receipts. Now is the time, if you haven't already, to enter all those expenses and offset any income you may have to pay less taxes. Get with me and we will go through your expenses and losses and calculate your tax liability. Never assume that an expense is not business related unless you ask your accountant. Some people do and then loose out on legit tax benefits.
#5) Setup your tax-planningsession now. It is time to take a look back at what went right, what didn't work and what changes can be made now before we are hit with the New Year. It is much simpler to be Proactive rather than Reactive, especially when it comes to taxes. Take the time to make a plan and stay up on your books! It's your business, pay attention to its financial health.
And my final and most important step - Don't hesitate to pick up the phone and call me. It is easier to find a solution to a problem ahead of time than it is to unravel a mess that was not being attended to after time. After all, that is why I am here. Let me do what I am best at and you - Go build your business!!!
Tuesday January 29, 2019
Opportunity Zone Tax Breaks What is an Opportunity Zone: An Opportunity Zone is an economically-distressed community where new investments, under certain conditions, may be eligible for preferential tax treatment. Localities qualify as Opportunity Zones if they have been nominated for that designation by the state and that nomination has been certified by the Secretary of the U.S. Treasury via his delegation of authority to the Internal Revenue Service. Tax benefits of Opportunity Zones, as follows: Qualified... Read More
Monday June 18, 2018
Tax Tips for Independent Contractors Writing Off Your Expenses Independent Contractors can claim a variety of expenses against their income to help lower their tax bills. If you have ordinary and necessary expenses for your industry, you may be able to claim the expense. An ordinary expense is one that is common and accepted in your trade or business. A necessary expense is one that is helpful and appropriate for your line of work. For example, as an Uber or Lyft driver, keep track of expenses for city maps, apps, mileage and... Read More
Thursday December 21, 2017
Tis the Season With the tax year coming to an end, I would like to take this time to remind you of some last minute tax saving tips. Many taxpayers receive gifts during the holiday season. These gifts usually replace older items which are either disposed of or donated. Before you dispose of your items, contact your local charity / donation store and donate the items. Remember to get a donation receipt and write down the fair market value of the item(s) you're donating. Shopping at the Store and you... Read More
Wednesday November 29, 2017
Record Keeping Tips More... 1 ) Keepyour Books Up-to-date. Save time and Tax dollars by staying organized and up-to-date with your books. 2) Protect Your Identity. Dont routinely carry your Social Security card and make sure your tax records are secure. Treat your personal information like you do your cash; dont leave it lying around. 3) Hard Copies Retention and Records Disposal. Retain a copy of your completed federal and state tax returns and their supporting materials. There... Read More
Tuesday November 14, 2017
Holiday Travel Turkeys are not the only thing that can gobble. Taxpayers can gobble up some tax savings on travel expenses. In order to legally deduct 100% of travel expenses you incur this Holiday Season, you must meet these requirements: Rule #1 Business Activity: The foundation for deducting travel expenses is that the travel benefits your business . There are many ways traveling outside of your city can be helpful to your business. Whether it isscouting out new rental properties or attending a conference... Read More
Wednesday November 1, 2017
The opportunity is NOW! Knowing where you stand in your business leads to better expense tracking and budgeting, which leads to quality decision making to GROW YOUR BUSINESS, not the IRS's bank account. This also applies to individual taxpayers. Reviewing itemized deductions, wages, tax credits, and deductions will help you determine what necessary changes need to be madeat the beginning of the year. Year-End Tax Planning Complete YTD Bookkeeping, to know where you stand Comprehensive analysis of... Read More
Wednesday September 14, 2016
If you are wondering if Meals Entertainment expenses can be deducted on taxes, the answer is a definite YES! However, this only works if the expenses are protected and kept with proper documentation. What is proper documentation? Well, to further help you with the documentation process, below is a list of information which you have to take note on whenever you have a meal or entertainment expense to record. Amount of each separate expense Description of each separate expense Date of expense Location of... Read More
Wednesday September 14, 2016
Year End is a crucial time in a tax strategy. Once the year has ended some tax opportunities are gone forever. Tax planning is the art of arranging your affairs to postpone or avoid taxes. There is a significant difference in tax avoidance and tax evasion. Tax Evasion vs. Tax Avoidance: One measure of the extent of tax evasion is the amount of unreported income, which is the difference between the amount of income that should be reported to the tax authorities and the actual amount reported. In contrast, tax... Read More
Wednesday September 14, 2016
There are actually three big red flags for an S Corporation that you need to watch out for when it comes to the IRS: #1) Not taking a salary from a profitable S Corporation. If you have an S Corp with a profit, you need to take a salary. I have a general rule of thumb on this one, so please call me before making any changes. If you areturning a reasonable profit and you don't take a salary, chances are you are going to get an audit by the IRS. #2) Not properly reporting medical insurance premiums. The medical insurance... Read More
Monday August 8, 2016
Bookkeeping - Your Books Your Time Often times it is difficult for the business owner to keep up with all of the financial information that involves their business. It is overwhelming and time consuming. Then we ask the question of ourselves, Is this really an important document? As you review all those documents here are some tips to remember: Plan for major expenses Do not miss a business opportunity because your financial documents were not in good order. Be ready if you need a... Read More