Let me state right up front… I straight copied this information from Mary953’s CAPS Blog Why? Because, it’s THE BOMB! Even though she provided these explanations several years ago, her descriptions are gold, and I never want to lose them! I also want you to know exactly where to find them when needed. So, let […]
2018 Tax Reform on Business Meals & Entertainment – Mostly gone except…
Business meals and entertainment suffered a blow in the new 2018 tax reform bill… BUT if you’re serving meals or refreshments to prospects as part of a sales presentation that is open to the general public (meaning not just to your family and friends), the expense then qualifies as a “presentation” aka “promotional” expense, and […]
1099-Misc forms Must Be Filed by January 31st – Fines have Increased
Happy Tax Filing Season to my Small Business Owners, This is just a friendly reminder that if you paid any person, vendor, or business order $600 or more throughout the entire year of 2016 for services performed, you are legally required to give them a 1099-misc form by January 31st, 2017. The IRS […]
Does the IRS ‘Really’ Expect Detailed Driving Records for My Automobile Expense Deduction???
Before I start-in on the answer to this question, please understand this article only pertains to individuals who use their personal vehicle for self-employed, freelance, or 1099 contract work. Any work you do for an employer from whom you receive a form w-2 does not apply; even if you are the owner. If you (as […]
Things Small Business Owners Do The IRS Calls “Negligence” and “Intentional Disregard”
Somewhere in the world of small business we’ve come up with clever ideas to keep the IRS from getting all of the tax dollars due to them. I’m not sure why, but we think we can outsmart the highly trained and educated IRS auditor who makes his living investigating financial rabbit trails. You should know […]
Sole proprietor and Independent Contractors Prepare for Tax Season
As a sole proprietor/independent contractor, your income is the most heavily taxed of all wage earners. You will be assessed a federal tax, state tax, local tax, and a self-employment tax. The best way to lower your tax liability (the amount of tax dollars you owe to these entities) is for you to take time […]
When Businesses Barter Is it Taxable Income?
Due to our slow moving economy, we’ve seen an increase in businesses bartering with one another. Bartering occurs when you exchange goods or services without exchanging money. An example of bartering is a plumber doing repair work for a dentist in exchange for dental services. – IRS Topic 420 So, is this exchange considered taxable […]
1099-Misc: Other Income vs. Nonemployee Compensation
One of my small business clients received a form 1099-misc from one of her customers for whom she’d performed a business service. The customer unknowingly reported the income using box 3: “Other Income” when she should have reported it in box 7: “Nonemployee Compensation”. So what’s the difference? One is for payment for services performed, […]
Question: How Can I raise Money to Start a Business with Poor Credit.
A young lady asked: Do you have any advice on how to raise money to start your business when you have poor credit? Many people responded, but I believe they failed to answer her actual question. They said things like: Consider the “Big Picture”. Write out your SMART Goal. Determine Roadblocks. Take Responsibility. Take Action. […]