Avoiding a Tax Audit
Even though the Internal Revenue Service likes to present a “kinder, friendlier” image to the public, you better believe that they are not slacking off in the collection of taxes. After all, their job is to raise money for the federal government. IRS staff has actually decreased, but more sophisticated computer programs cross check items [...]
More Time to Prepare or to Procrastinate?
The IRS has officially announced that the tax deadline for 2011 individual tax returns is Tuesday, April 17, 2012. The usual deadline of April 15 is on Sunday, and the 16th is Emancipation Day, an observed holiday in the District of Columbia. 2012 is also a leap year where February has 29 days in order [...]
Year End Tax Planning
With 2011 coming to a close, it’s time to take a final look at tax strategies for year end. It’s especially important this year because many incentives are set to expire unless extended. Conventional wisdom says to defer income and accelerate deductions. Depending on your perspective as to whether tax rates will decrease, stay the [...]
Give consideration to Domestic Production Deduction in Tax Planning
Business taxpayers can claim a domestic production activities deduction under Code Sec. 199 to offset income from domestic manufacturing and other domestic production activities. The Code Sec. 199 deduction or DPD equals 9% of the smaller of— The taxpayer's “qualified production activities income” or QPAI, for the tax year, or The taxpayer's taxable income [...]
Are you eligible to claim a home-office deduction?
Running a business from your home could save you taxes! Before you go through all of the trouble of filing out IRS Form 8829 consider whether the home office deduction is worth it or not. To help make that consideration you must pass the 4 question test: Is the home office used in a [...]
