Should You Use Technology for Record Keeping?
Technology can be helpful when it comes to bookkeeping! There are many new gadgets and applications on the market that assist with tracking business expenses. While these “apps” eliminate paper, they do not eliminate the need to provide your tax preparer with the...
Would Your CPA Approve of How You Organize Your Files & Receipts?
I recently met with a contractor who had very organized files. You could tell he spent a lot of time assembling his receipts. The problem: they were organized in a manner that was not efficient for preparing a tax return. Instead, the gentleman had organized his...
How Do I Handle My Mother’s Estate?
QUESTION: Dear Taxman - I am the administrator of my Mother's estate. All she owned at the time of her death was her car, her house and a few investments which were all sold at a loss. Am I required to file an estate income tax return? ANSWER: Dear Reader - An estate...
What Software Do I Use For My Small Business
QUESTION: Dear Taxman - I am starting a small business. What software should I use to keep track of my business transactions? ANSWER: Dear Reader - If you are only selling one product or service, Excel is good for tracking incoming and outgoing money in a list format...
Do I File A Return If My Business Had More Expenses Than Income?
QUESTION: Dear Taxman - This summer I started a lawn mowing business and made about $3,000 mowing grass. However, my expenses were more than my income. Do I need to report it on my tax return? ANSWER: Dear Reader: The IRS requires all business income to be reported...
Claiming Dependents
QUESTION: Dear Taxman - My Daughter graduated from college in May of this year. She started working in September and expects to make about eleven thousand dollars this year. Can we still claim her as a dependent for this year? ANSWER: Dear Reader: To claim her as a...
What Is The Due Date for Filing W-2’s?
QUESTION: Dear Taxman - What is the due date for filing my W-2's with the Social Security Administration? ANSWER: Dear Reader - You're probably aware that W-2 forms must be provided to your employees by January 31st. The IRS has set the due date for filing your W-2's...
Do I Give my Employees 1099’s or W-2’s?
QUESTION: Dear Taxman - I have a small business and I am not sure if I should give my workers 1099's or W-2's. Can you tell me how to determine which way to go? ANSWER: Dear Reader - It's not uncommon for small business owners to be confused about the right way to...
Donations to Non-Profits
QUESTION: Dear Taxman - I donate money to different non-profit organizations. Every year my Tax Preparer deducts some but not all of them. I thought donations to all non-profit groups were tax deducible. ANSWER: Dear Reader - Non-profit groups don’t pay income taxes...
Deducting Vehicle Mileage
QUESTION: Dear Taxman - I use my car in my business occasionally. I have paid for all my gas with my debit card so I have a record of how much gas I purchase. Is there anything else I need to do to deduct my auto through my business? ANSWER: Dear Reader - The record...