YOUR QUESTIONS ANSWERED

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 records by vendor. The solution: The income tax return… Continue Reading

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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 that you can sort and search. If your business is much larger,… Continue Reading

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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 when you file your 2016 Tax return.… Continue Reading

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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 2016? ANSWER: Dear Reader: To claim her as a dependent in any year she must have been a full… Continue Reading

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What Is The Due Date for Filing W-2’s?

QUESTION:  Dear Tax Man – 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 employee’s by January 31st. But did you know that the IRS has changed the due date for filing your W-2’s with… Continue Reading

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Do I Give MY Employees: 1099’s or W-2’s?

QUESTION: Dear Tax Man – 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 handle… Continue Reading

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Donations to Non-Profits

QUESTION: Dear Tax Man – 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 on money you give them. That does not mean you get… Continue Reading

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Ask Your CPA – Deducting Vehicle Mileage

QUESTION: Dear Tax Man –  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… Continue Reading

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Ask Your CPA: Charity 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 done organization or a bank record such as a cancelled check… Continue Reading

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When should I refinance my home?

QUESTION: Dear Tax Man – When should I refinance my home? ANSWER: Dear Reader – Refinancing becomes worth your while if the current interest rate on your mortgage is at least 2 percentage points higher than the prevailing market rate. Talk to several lenders to find out what the current refinancing rates and what costs… Continue Reading

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How Long Do I Keep Tax Records?

QUESTION: Dear Tax Man – How long am I required to keep my tax records? ANSWER: Dear Reader – You should save all your income tax records for the current year and six previous years. Certain tax records like your income tax returns should be kept permanently. Property settlement transaction documents should be kept for… Continue Reading

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