The Internal Revenue Service is letting tax professionals and taxpayers know about a new scam involving fake CP2000 notices that are being sent to unsuspecting taxpayers, billing them for unpaid taxes related to the Affordable Care Act. The IRS is issuing the alert in conjunction with its partners in the Security Summit initiative, in which the IRS has been teaming … Read More
Deducting Your Car As a Business Expense
Whether you’re self-employed or an employee, if you use a car for business, you get the benefit of tax deductions. There are two choices for claiming deductions: Deduct the actual business-related costs of gas, oil, lubrication, repairs, tires, supplies, parking, tolls, drivers’ salaries, and depreciation. Use the standard mileage deduction in 2016 and simply multiply 54 cents by the number … Read More
Tax Status for Newlyweds
Getting married changes your tax status. Being aware of a few key things can help you avoid trouble come tax time. If you and your partner were married anytime in 2016, the IRS considers you to be married for the full year, so you both should adjust your tax withholding with your employers. A two-earner couple may end up in a … Read More
The Holy Grail of Tax Deductions
Here are three deductions which could be considered “the holy grail” of deductions. That is, they can greatly reduce your adjusted gross income. 1. Contributing to a traditional IRA One of the best ways to reward yourself now — and later — is by contributing to a traditional IRA. A traditional IRA has a maximum annual contribution limit in 2016 … Read More
Construction Business Grows With CPA Advice
Stephen runs a construction business specializing in large basements and car parks. The business has been established for 25 years and has grown steadily, with revenue now into eight figures. Unfortunately, the profit margins are very slim and last year, Stephen’s business barely broke even and he was unable to draw his usual dividend at the year end. His CPA … Read More
Questions to Ask Your Accountant
Before choosing an accountant to handle the nuts and bolts of your business’s numbers, first you might want to interview the accountant and found out how they conduct their own business matters. We visited this topic in a more general overview in the past, but this time let’s take a more in-depth look at questions to ask your accountant next … Read More
Did You Make a Tax Mistake?
The April 18th tax filing deadline is finally in the rearview mirror. Now you might be sitting back, waiting for that refund check to hit your account – or trying not to think about that big one you had to write. Then, all of sudden, you realize you made a tax mistake. Maybe it was a simple tax mistake: you … Read More
What Will You Do with Your Tax Refund?
Most people who are expecting a tax refund this year or who already have gotten one plan to use the money to improve their personal finances. About a third (34%) say they’ll use it to pay down their debt, and another third (33%) say they’ll save or invest the money, a new survey shows. About a quarter (26%) say they … Read More
Claim Tax Credits Before It’s Too Late
It’s crazy to think, but many taxpayers every year fail to take advantage of the tax credits they’re eligible for. With April 18 almost here, make sure you’re up to speed on any credits you may be able to claim, as that could make a serious dent in your tax burden or even result in the IRS writing you a nice … Read More
Is Filing a Tax Extension Right for You?
The tax deadline is just around the corner. Maybe you’re overwhelmed at work or you misplaced the W-2 that your employer sent you weeks ago. Whatever the reason, it looks like you might not make the looming April 18 due date and filing a tax extension may be the right thing for you. It’s alright! The good news is that … Read More