Record Keeping

Launching a small business? Here are some tax considerations

Business Deductions, Business Expenses, Employees, Qualified Business Income Deducton (QBI), Retirement, Simples, Simplified Employee Pension (SEP), Small Business, Sole Proprietors / By Douglas Freeman

While many businesses have been forced to close due to the COVID-19 pandemic, some entrepreneurs have started new small businesses. Many of these people start out operating as sole proprietors. Here are some tax rules and considerations involved in operating with that entity. The pass-through deduction. To the extent your business generates qualified business income …

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Are scholarships tax-free or taxable?

COVID-19, Form W-2, Scholarships, Tax, Tax Savings / By Douglas Freeman

COVID-19 is changing the landscape for many schools this fall. But many children and young adults are going back, even if it’s just for online learning, and some parents will be facing tuition bills. If your child has been awarded a scholarship, that’s cause for celebration! But be aware that there may be tax implications. …

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After you file your tax return: 3 issues to consider

Documentation, Doucment Retention, Individual Income Tax, Internal Revenue Service, Tax, Tax Deadlines, Tax Planning, Tax Record Retention / By Douglas Freeman

The tax filing deadline for 2019 tax returns has been extended until July 15 this year, due to the COVID-19 pandemic. After your 2019 tax return has been successfully filed with the IRS, there may still be some issues to bear in mind. Here are three considerations. 1. Some tax records can now be thrown …

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Take a closer look at home office deductions

Business Deductions, Business Income Tax, Deductable Expenses, Deductions, Home Office Deduction, Income Tax, Self Employed, Small Business, Tax Cuts and Job Acts (TCJA), Tax Planning, Tax Record Retention / By Douglas Freeman

Working from home has its perks. Not only can you skip the commute, but you also might be eligible to deduct home office expenses on your tax return. Deductions for these expenses can save you a bundle, if you meet the tax law qualifications. Under the Tax Cuts and Jobs Act, employees can no longer …

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The “nanny tax” must be paid for more than just nannies

Employment Tax, Federal Income Tax, Federal Unemployment (FUTA Tax, Form SS-4, Form W-4, Nanny Tax, Social Security & Medicare (FICA) taxes / By Douglas Freeman

You may have heard of the “nanny tax.” But even if you don’t employ a nanny, it may apply to you. Hiring a housekeeper, gardener or other household employee (who isn’t an independent contractor) may make you liable for federal income and other taxes. You may also have state tax obligations. If you employ a …

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Deducting business meal expenses under today’s tax rules

Business Meals and Entertainment, Deductable Expenses, Income Tax, Small Business, Tax Cuts and Job Acts (TCJA) / By Douglas Freeman

In the course of operating your business, you probably spend time and money “wining and dining” current or potential customers, vendors and employees. What can you deduct on your tax return for these expenses? The rules changed under the Tax Cuts and Jobs Act (TCJA), but you can still claim some valuable write-offs. No more …

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Best practices when filing a business interruption claim

Business Interruption Insurance, Small Business / By Douglas Freeman

Many companies, especially those that operate in areas prone to natural disasters, should consider business interruption insurance. Unlike a commercial property policy, which may cover certain repairs of damaged property, this coverage generally provides the cash flow to cover revenues lost and expenses incurred while normal operations are suspended because of an applicable event. But …

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What you can deduct when volunteering

Charitable, Charitable Mileage Deduction, Deductable Expenses, Federal Income Tax, Income Tax, Tax Deduction / By Douglas Freeman

Because donations to a charity of cash or property generally are tax deductible (if you itemize), it only seems logical that the donation of something even more valuable to you — your time — would also be deductible. Unfortunately, that’s not the case. Donations of time or services aren’t deductible. It doesn’t matter if it’s …

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