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...
Charitable Deductions
QUESTION: Dear Taxman - Every week I place cash in the collection plate at church. I recently heard I cannot deduct it since I have no banking record. Is that true? ANSWER: Dear Reader - As of August 16, 2006 a receipt from the donee organization or a bank record such...