#1 - IS IT A JUST A COINCIDENCE?
October was the final filing date for 2008 taxes.
October is National Disability Month.
Coincidence? Makes a person wonder.
Just my dry humor, Sorry
#2 - SALES TAX DEDUCTION FOR NEW CAR BUYERS WILL BE EXTENDED
UNTIL YEAR-END
Purchases of a new (not used) car, light truck, motor home or motorcycle could qualify you for a special deduction for the state and local sales and excise taxes on 2009 tax returns.
The deduction is only for purchases made by the last day of 2009, and is limited to the taxed paid on up to $49,500 of the purchase price of the new vehicle.
You can get this deduction whether or not you itemize your deductions. If you do not itemize, you add this additional amount to the Standard Deduction on your 2009 tax return.
#3 - WARNING: IRS PUTS A 'TRIPLE-WHAMMY'ON HOME-BUSINESS OWNERS
Driven by Washington's massive spending spree, auditors are under more pressure than ever to "bring home the bacon" - and it's YOUR bacon!
In the coming year, if you are a Schedule C filer (sole proprietor or LLC), your chances of being audited just doubled.
That’s whammy #1.
Whammy #2 -- And if they do audit you, they will try to prove that you are not running a "business with the intent to make a profit" (which would kill ALL of your home business tax deductions).
The third "whammy" is the careful look they will take at the deduction you took -- or didn’t take -- for business use of your home (i.e., home office).
The taxpayer's problem will NOT come from CLAIMING this deduction, but from NOT claiming it.
You see, auditors are being taught that every legitimate business must be "based" somewhere.
If you claim to be a home-BASED business (HBB), but you don’t claim a home office, where is it BASED?
Showing posts with label Taxes. Show all posts
Showing posts with label Taxes. Show all posts
Saturday, October 24, 2009
Saturday, October 17, 2009
Saturday Tax Advice
IS YOUR "TAX PREPARER" A "TAX PROFESSIONAL ?"
In most states anyone can hang out a shingle claiming to be a "Tax Preparation Service," without any licensing or certification of any kind.
Some of them are well informed and handle the task exceedingly well. But not all of them.
Congress is yielding to pressure from the IRS to implement a registration requirement of some kind.
Expect legislation later this year, but don't expect
it to take effect until AFTER the coming tax season.
E-FILING OR PAPER-FILING? SURPRISE: THE IRS DOESN'T WANT US TO HAVE A CHOICE
If you have my book and read my Tax Tips, you know I am NOT a fan of E-Filing of Tax Returns, because it robs you of audit-proofing options and increases your chances of an audit.
The BAD NEWS:
The IRS is pushing Congress to force all taxpayers to file returns electronically by 2011. But so far, it looks like the requirement will apply only to all tax preparers who process 100 or more tax returns.
The SOLUTION:
After our tax pro has finished his or her work for us, maybe we'll have to tell them: DON'T SIGN my tax return. That would still leave us the option of filing our OWN Tax Return as a PAPER return.
Lenisa
With Help for You Taxes
In most states anyone can hang out a shingle claiming to be a "Tax Preparation Service," without any licensing or certification of any kind.
Some of them are well informed and handle the task exceedingly well. But not all of them.
Congress is yielding to pressure from the IRS to implement a registration requirement of some kind.
Expect legislation later this year, but don't expect
it to take effect until AFTER the coming tax season.
E-FILING OR PAPER-FILING? SURPRISE: THE IRS DOESN'T WANT US TO HAVE A CHOICE
If you have my book and read my Tax Tips, you know I am NOT a fan of E-Filing of Tax Returns, because it robs you of audit-proofing options and increases your chances of an audit.
The BAD NEWS:
The IRS is pushing Congress to force all taxpayers to file returns electronically by 2011. But so far, it looks like the requirement will apply only to all tax preparers who process 100 or more tax returns.
The SOLUTION:
After our tax pro has finished his or her work for us, maybe we'll have to tell them: DON'T SIGN my tax return. That would still leave us the option of filing our OWN Tax Return as a PAPER return.
Lenisa
With Help for You Taxes
Saturday, September 19, 2009
Auto Use Records
Time is winding down for you to be able to start creating a log for your auto use if you are going to claim it on your tax return. This may be the biggest tax break of them all. Who wouldn't want to get a $5K to $6K tax break. And it is a simple thing to do.
The IRS requires that you keep a log for no less than 90 days and you will get the tax deduction for the entire year.
For the next 90 days just keep track of you auto use for Biz purposes. These are the 4 things to keep track of:
Date / Destination / Primary Purpose / Miles
You can get the 2009 Vehicle Use Log by visiting www.HomeBusinessTaxSavings.com and click on the Free Downloads under the Resourse Center tab.
Destination does not have to be exact. For example, you could simply put Joe's Cafe'. You do not need the address of the Cafe'.
Primary Purpose is simply why you are going there. Miles are just that. How far away is it. If you went 12 miles, then 12 miles is what you write down.
You can get $550 for every 1,000 miles you drive. That is like getting $200 in tax deductions for every tank of gas you buy for you car.
So over the past year, if you put 10,000 miles on your car for business use, adn you kept track of it, you qualify for $5,500 in tax deductions.
Often there are ways to include errends and shopping miles too.
Here is an example how that works. With a little planning this can be of great benefits.
Let's say you have to get groceries, pay a few bills but you also have to go to the post office box to get your business mail and the copy shop to print business flyers and fax a proposal.
If you do that all that in one trip, all the miles you just racked up become business miles. On your log you put the date, the destination is the furthest business destination, say the Post Office or Copy Store. Primary purpose is what ever you did at the post office or copy shop. Total miles is what you racked up when you pull back into your driveway.
The fact that you also did grocery shopping and some other errond is secondary. The Secondary Purpose is not required to be logged. The Federal Tax Courts have given the taxpayer the right to determine what is Primary.
If you made two seperate trips, you put all those miles on your car and can only claim about half of your driving. By combining what you do, you get 100% of your miles deducted.
Each time you need to go somewhere, think of what business errand you could accomplish while you are gone. Sometimes you will not have any business to take care of but sometimes you will and that could wind up being a significant tax savings for you.
Two methods of figuring the Tax deductions for you Vehicle.
The standard method - the one above and the Actual Operating Cost method. (AOC)
The AOC method requires you to keep records all year long but may give you an even higher deduction. This takes into account the tires you buy, battery you needed to replace, depriciation and repairs of you vehicle.
Does this seem to be a lot to keep track of. It doesn't have to be a bother. Here is how you can simplify it for next year.
#1 Use a credit card with a zero balance and use this one card for only and all things related to the operation of the vehicle. This also includes car payments for owning or leasing.
#2 Write checks for anything you can not put on the card that relates to the vehicle expense. You will need to write down the check number, date, payee, amount and reason for the check on a ledger or some thing you use for your record keeping. Keep a running total.
#3 Cash payments. There will always be instances that you need to pay cash such as toll payments. Be sure to jot these down in the ledger also. Keep a running total.
At the end of the year, total up your 12 months of credit card statements, the total from you check ledge and the total from your cash ledger. Once all 3 are combined, you have your yearly total for vehicle expenses.
The IRS requires that you keep a log for no less than 90 days and you will get the tax deduction for the entire year.
For the next 90 days just keep track of you auto use for Biz purposes. These are the 4 things to keep track of:
Date / Destination / Primary Purpose / Miles
You can get the 2009 Vehicle Use Log by visiting www.HomeBusinessTaxSavings.com and click on the Free Downloads under the Resourse Center tab.
Destination does not have to be exact. For example, you could simply put Joe's Cafe'. You do not need the address of the Cafe'.
Primary Purpose is simply why you are going there. Miles are just that. How far away is it. If you went 12 miles, then 12 miles is what you write down.
You can get $550 for every 1,000 miles you drive. That is like getting $200 in tax deductions for every tank of gas you buy for you car.
So over the past year, if you put 10,000 miles on your car for business use, adn you kept track of it, you qualify for $5,500 in tax deductions.
Often there are ways to include errends and shopping miles too.
Here is an example how that works. With a little planning this can be of great benefits.
Let's say you have to get groceries, pay a few bills but you also have to go to the post office box to get your business mail and the copy shop to print business flyers and fax a proposal.
If you do that all that in one trip, all the miles you just racked up become business miles. On your log you put the date, the destination is the furthest business destination, say the Post Office or Copy Store. Primary purpose is what ever you did at the post office or copy shop. Total miles is what you racked up when you pull back into your driveway.
The fact that you also did grocery shopping and some other errond is secondary. The Secondary Purpose is not required to be logged. The Federal Tax Courts have given the taxpayer the right to determine what is Primary.
If you made two seperate trips, you put all those miles on your car and can only claim about half of your driving. By combining what you do, you get 100% of your miles deducted.
Each time you need to go somewhere, think of what business errand you could accomplish while you are gone. Sometimes you will not have any business to take care of but sometimes you will and that could wind up being a significant tax savings for you.
Two methods of figuring the Tax deductions for you Vehicle.
The standard method - the one above and the Actual Operating Cost method. (AOC)
The AOC method requires you to keep records all year long but may give you an even higher deduction. This takes into account the tires you buy, battery you needed to replace, depriciation and repairs of you vehicle.
Does this seem to be a lot to keep track of. It doesn't have to be a bother. Here is how you can simplify it for next year.
#1 Use a credit card with a zero balance and use this one card for only and all things related to the operation of the vehicle. This also includes car payments for owning or leasing.
#2 Write checks for anything you can not put on the card that relates to the vehicle expense. You will need to write down the check number, date, payee, amount and reason for the check on a ledger or some thing you use for your record keeping. Keep a running total.
#3 Cash payments. There will always be instances that you need to pay cash such as toll payments. Be sure to jot these down in the ledger also. Keep a running total.
At the end of the year, total up your 12 months of credit card statements, the total from you check ledge and the total from your cash ledger. Once all 3 are combined, you have your yearly total for vehicle expenses.
Saturday, August 8, 2009
Home Business Tax Savings
Tax Help for the Home Business Owner
I BELIEVE THAT WE SHOULD BE WILLING TO PAY UNCLE SAM
EVERY PENNY REQUIRED BY LAW.
BUT THAT LAW DOES NOT SAY THAT
WE HAVE TO OVER PAY!!!
This blog is intended to help you, the home business owner, save money by pointing out the TAX BREAKS set fourth by our Government.
So how do you know you qualify as a Home Business Owner?
The Law says that ANY tax payer who has an ACTIVE Home Based Business has to do the following:
• Run that business consistently
• Run it with the INTENT to make a profit.
• Keep good records
You can reduce your taxes by $3000 to $6000 a year just by doing those 3 things.
SOME ADVICE: No one should start a home business just to get the tax deductions. That is not what the tax breaks are for. The breaks are a result of having the business the reason for it.
Are you just starting your business? Here is more Great news!!!
The American Jobs Creation Act allows taxpayers to deduct up to $5000 in new business start up costs and $5000 in Organizational Expenditures (in the tax year the business is started) This is a huge benefit for both small and home based businesses.
Start Up Costs: Those expenses incurred before actually offering goods and services for sale.
Organizational Costs: Expenses for business license or setting up a business entity like LLC’s or Corporations.
Thank you for reading my Tax blog. My hope is to help you, the tax payer keep that which is rightfully your.
Next week: Further information on those 3 qualifications of Home Business Ownership.
Yours Truly,
Lenisa
Dish Gardens by Lenisa
www.Lenisa.Etsy.com
Lenisahbb@yahoo.com
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I BELIEVE THAT WE SHOULD BE WILLING TO PAY UNCLE SAM
EVERY PENNY REQUIRED BY LAW.
BUT THAT LAW DOES NOT SAY THAT
WE HAVE TO OVER PAY!!!
This blog is intended to help you, the home business owner, save money by pointing out the TAX BREAKS set fourth by our Government.
So how do you know you qualify as a Home Business Owner?
The Law says that ANY tax payer who has an ACTIVE Home Based Business has to do the following:
• Run that business consistently
• Run it with the INTENT to make a profit.
• Keep good records
You can reduce your taxes by $3000 to $6000 a year just by doing those 3 things.
SOME ADVICE: No one should start a home business just to get the tax deductions. That is not what the tax breaks are for. The breaks are a result of having the business the reason for it.
Are you just starting your business? Here is more Great news!!!
The American Jobs Creation Act allows taxpayers to deduct up to $5000 in new business start up costs and $5000 in Organizational Expenditures (in the tax year the business is started) This is a huge benefit for both small and home based businesses.
Start Up Costs: Those expenses incurred before actually offering goods and services for sale.
Organizational Costs: Expenses for business license or setting up a business entity like LLC’s or Corporations.
Thank you for reading my Tax blog. My hope is to help you, the tax payer keep that which is rightfully your.
Next week: Further information on those 3 qualifications of Home Business Ownership.
Yours Truly,
Lenisa
Dish Gardens by Lenisa
www.Lenisa.Etsy.com
Lenisahbb@yahoo.com
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