If you operate your business as a corporation and you have a legitimate office in home, you have three basic ways to claim this deduction. Doing it wrong produces zero dollar benefit from the office in the home and, in addition, can dramatically reduce your deductions. Business owners with a home office commonly use one [...]
Whether you see a tax professional or prepare your own taxes. Small Business Tax Prep Checklist Personal Information Your social security number or tax ID numberYour spouse's full name and social security number or tax ID numberAmount of any alimony paid and ex-spouse's full name and social security numberYour tax returns for the previous three [...]
The chart below provides an overview of the various categories of individuals who may prepare federal tax returns for compensation. *Enrolled Agents have passed a three-part, comprehensive IRS exam covering individual and business returns. They must adhere to ethical standards and complete 72 hours of continuing education courses every three years. EAs have unlimited practice [...]
Use the schedule C to report income or loss from a business you operated or a profession you practiced as a sole proprietor. An activity qualifies as a business if your primary purpose for engaging in the activity is for income or profit and you are involved in the activity with continuity and regularity.
Penalties for late filing and late payment are the most common penalties that affect small business owners. The IRS charges penalties for filing your individual income tax return after the deadline or not paying your tax bill in full by April 15th. The late filing penalty is generally 5 percent of the total tax owed [...]
Estimated tax tip savings: You can save BIG by understanding how to avoid the evil builtin gains tax that often applies when you convert your C Corporation into an S corporation. Let’s say that you have decided the S corporation is the choice of entity for you. And let’s say further that you currently operate [...]
Tax Planning: 10 Ways to Get Organized for Next Tax Season Tax planning is a very important part of every business. Now that this tax season has ended, how can you get back on track and be sure you’re ready for the next tax season? The following ten tips should be useful whether you’re an [...]