An important aspect of tax compliance for business owners is the requirement to file a 1099 for certain payments made during the normal course of business. If you are a business owner, below is a summary of what you need to know. What is a 1099? A 1099 is an IRS form that tells the IRS who […]
What is an Enrolled Agent? Although no formal credentials are required to work as a tax preparer in the U.S., hiring one with a professional license protects your interests. Besides the obvious choice of hiring a CPA, an Enrolled Agent, or EA, is another option. Enrolled Agents are licensed at the federal level by the […]
Interest on personal loans and credit cards is generally not a deductible expense. But one important exception to this general rule is when you use a personal credit card or take out a personal loan to pay for business-related expenses. In this situation, the interest is deductible as a business expense provided you meet the following […]
When an investor sells a stock or mutual fund that produces a loss, this capital loss reduces taxable income by first offsetting any capital gains, and then by reducing taxable income up to $3,000. Net capital losses in excess of $3,000 generate what is called a capital loss carryforward that can be used in future tax years. […]
In today’s highly mobile society, it’s not unusual for people to live and work in different states, and that mobility can have tax implications. In this two-part series, we will look at what that can mean for your taxes, starting with your federal income tax return. Travel may be deductible The primary issue to consider when […]
Welcome to Florida! You can now enjoy the benefits of living in a state with no state income tax. But don’t put your checkbook away just yet. In certain situations, your former state can tax income that you receive even after you establish residence in Florida. Paraphrasing a famous movie quote, just when you thought you […]
In the event of an IRS audit, you need to provide documentation for your deductible expenses. Some people keep the receipts, while others keep credit card statements. So what exactly do you need to keep? Keep the receipt and the credit card statement In general, for everything you want to deduct, you should keep the […]
Keeping track of receipts for tax-deductible expenses can be a hassle. File cabinets stacked with invoices and wallets filled with paper receipts take up time and space and can become downright annoying. One solution to this problem is to convert paper receipts and other tax-related documents into digital files. That’s correct, the IRS does not […]
Most of us have heard stories about innocent people receiving scam calls from someone posing as an IRS agent threatening immediate legal action and arrest if they don’t immediately make a payment. Perhaps even you have received one of these calls. Here’s what you need to know about how the IRS gets in touch with […]
