Using a Car for Business: New Rules under TCJA

Brian SingletonBlog, Watch Your Wallet

Many of the tax provisions under tax reform were favorable to small business owners including those relating to using a car for business. Here’s what you need to know. 1. Section 179 Expense Deduction If you bought a new car in 2018 and use it more 50 percent for business use, you can take advantage of the Section 179 expense deduction when you file your 2018 tax return. Under Section 179 you can immediately deduct (rather than depreciating) the cost … Read More

2017 Corporate Year-End Tax Info and Checklist

Brian SingletonBlog, Watch Your Wallet

Checklist for preparing your records to conform with IRS compliance requirements. How organized is your paperwork? For your corporation to be complete, you need a corporate record book, complete with corporate applications, corporate charter, bylaws, stock certificates and minutes of meetings. These items are all evidence that your business is a legitimate corporation. Do you loan your corporation money? You must be careful to document debt. Short term unwritten advances of less than $10,000 are acceptable if you treat them … Read More

Hold On to Your Tax Returns

Brian SingletonBlog, Watch Your Wallet

You should always keep a copy of your tax return for your records. You may need copies of your filed tax returns for many reasons. For example, they can help you prepare future tax returns. You’ll also need them if you have to amend a prior year tax return. You often need them when you apply for a loan to buy a home or to start a business. You may need them if you apply for student financial aid. If … Read More

Recordkeeping for Charitable Contributions

Brian SingletonBlog, Watch Your Wallet

You must keep records to prove the amount of any cash and noncash contributions you make during the year. Which records you must keep depends on the amount you contribute and whether they are cash or property contributions. New recordkeeping requirements were established for all contributions made after January 1, 2007. You cannot deduct a cash contribution, regardless of the amount, unless you keep as a record of the contribution, bank records (such as a cancelled check or bank statement … Read More

Starting a Business? Five Things You Must Know

Brian SingletonBlog, Watch Your Wallet

Starting a new business is an exciting, but busy time with so much to be done and so little time to do it in. And, if you expect to have employees, there are a variety of federal and state forms and applications that will need to be completed to get your business up and running. That’s where a tax professional can help. Employer Identification Number (EIN) Securing an Employer Identification Number (also known as a Federal Tax Identification Number) is … Read More

Turn Your Vacation into a Tax Deduction

Brian SingletonBlog, Watch Your Wallet

Tim, who owns his own business, decided he wanted to take a two-week trip around the US. So he did–and was able to legally deduct every dime that he spent on his vacation. Here’s how he did it. 1. Make all your business appointments before you leave for your trip. Example: Tim wants to vacation in Hawaii. If he places several advertisements for distributors, or contacts some of his downline distributors to perform a presentation, then the IRS would accept … Read More

Paying Taxes on Household Helpers

Brian SingletonBlog, Watch Your Wallet

If you employ someone to work for you around your house, it is important to consider the tax implications of this arrangement. While many people disregard the need to pay taxes on household employees, they do so at the risk of paying stiff tax penalties down the road. As you will see, the rules for hiring household help are quite complex, even for a relatively minor employee, and a mistake can bring on a tax headache that most of us … Read More

Tips for Safeguarding Financial Records

Brian SingletonBlog, Watch Your Wallet

Some natural disasters are more common in the summer. But major events such as hurricanes, tornadoes and fires can strike at any time, so it’s a good idea to plan for what to do in case of a disaster. You can help make your recovery easier by keeping your tax and financial records safe. Here are some basic steps you can take now to prepare: 1. Backup Records Electronically. Many people receive bank statements by email. This is a good … Read More

Start Planning Now for Next Year’s Tax Return

Brian SingletonBlog, Watch Your Wallet

1. Adjust your withholding. Why wait another year for a big refund? Now is as good a time as any to review your withholding and make adjustments for next year, especially if you’d prefer more money in each paycheck this year. If you owed money at tax time, perhaps you’d like next year’s tax payment to be smaller. Give us a call if you need assistance in adjusting your withholding. 2. Take action when life events occur. Life events include the birth … Read More