Recordkeeping – Page 4 – DougFreemanCPA.com

Scholarships are usually tax free but they may result in taxable income

If your child is fortunate enough to be awarded a scholarship, you may wonder about the tax implications. Fortunately, scholarships (and fellowships) are generally tax-free for students at the elementary, middle, and high schools, as well as those attending college, graduate school or accredited vocational schools. It doesn’t matter if the scholarship makes a direct […]

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Get serious about your strategic planning meetings

Small Business, Strategic Business Planning / Douglas Freeman

Most business owners would likely agree that strategic planning is important. Yet many companies rarely engage in active measures to gather and discuss strategy. Sometimes strategic planning is tacked on to a meeting about something else; other times it occurs only at the annual company retreat when employees may feel out of their element and

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Getting a new business off the ground: How start-up expenses are handled on your tax return

Business Deductions, Business Expenses, Business Start Ups, Entrepreneurs, Small Business, Tax Return / Douglas Freeman

Despite the COVID-19 pandemic, government officials are seeing a large increase in the number of new businesses being launched. From June 2020 through June 2021, the U.S. Census Bureau reports that business applications are up 18.6%. The Bureau measures this by the number of businesses applying for an Employer Identification Number. Entrepreneurs often don’t know

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Recordkeeping DOs and DON’Ts for business meal and vehicle expenses

Business Deductions, Business Expenses, Business Meals and Entertainment, Small Business, Vehicle Expenses / Douglas Freeman

If you’re claiming deductions for business meals or auto expenses, expect the IRS to closely review them. In some cases, taxpayers have incomplete documentation or try to create records months (or years) later. In doing so, they fail to meet the strict substantiation requirements set forth under tax law. Tax auditors are adept at rooting

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Working in the gig economy results in tax obligations

Deductable Expenses, Deductions, Gig Economy, Independent Contractors, Internal Revenue Service, Tax, Tax Planning / Douglas Freeman

Before the COVID-19 pandemic hit, the number of people engaged in the “gig” or sharing economy had been growing, according to several reports. And reductions in working hours during the pandemic have caused even more people to turn to gig work to make up the lost income. There are tax consequences for the people who

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Still have questions after you file your tax return?

Internal Revenue Service (IRS), Tax, Tax Record Retention, Tax Refund / Douglas Freeman

Even after your 2020 tax return has been successfully filed with the IRS, you may still have some questions about the return. Here are brief answers to three questions that we’re frequently asked at this time of year. Are you wondering when you will receive your refund? The IRS has an online tool that can

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Working in the gig economy results in tax obligations

Deductable Expenses, Deductions, Gig Economy, Independent Contractors, Internal Revenue Service (IRS), Tax, Tax Planning / Douglas Freeman

Working in the gig economy results in tax obligations Read More »

Home sales: How to determine your “basis”

Income Tax, Itemized Deduction, Real Estate, Repairs and Maintenance, Tax Savings / Douglas Freeman

The housing market in many parts of the country is strong this spring. If you’re buying or selling a home, you should know how to determine your “basis.” How it works. You can claim an itemized deduction on your tax return for real estate taxes and home mortgage interest. Most other homeownership costs can’t be

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Need a new business vehicle? Consider a heavy SUV

Business Equipment, Business Expenses, Tax Deduction, Tax Planning, Tax Savings, Vehicle Expenses / Douglas Freeman

Are you considering buying or replacing a vehicle that you’ll use in your business? If you choose a heavy sport utility vehicle (SUV), you may be able to benefit from lucrative tax rules for those vehicles. Bonus depreciation. Under current law, 100% first-year bonus depreciation is available for qualified new and used property that’s acquired

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Now more than ever, carefully track payroll records

Employees, Federal Income Tax, Form W-4, Medicare Taxes, Paycheck Protection Program, Payroll & HR Functions, Payroll Service, Payroll Tax, Small Business, Social Security & Medicare (FICA) taxes / Douglas Freeman

The subject of payroll has been top-of-mind for business owners this year. The COVID-19 pandemic triggered economic changes that caused considerable fluctuations in the size of many companies’ workforces. Employees have been laid off, furloughed, and, in some cases, rehired. There has also been crisis relief for eligible businesses in the form of the Paycheck

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