Tax Planning Archives - Page 2 of 6

Claiming an Elderly Parent or Relative as a Dependent

April 22, 2020/in Tax Planning /by Becky Bertuzzi

Do you have an elderly parent or adult relative that you take care of? It doesn’t have to be a parent; it could be an adult child with special needs, an elderly aunt or another close relative. As long as it is a qualifying relationship, the IRS allows you to claim such a persons as a dependent on your tax return. There are certain criteria and it must be done in a certain way, but it can be done. Below are the general guidelines, but you should consult with your tax professional for details.

How to Account for your Side Hustle

April 6, 2020/in Tax Planning /by Becky Bertuzzi

Selling cheesecakes on the side, or DJ’ing friend’s weddings? You’re not alone. Over 15% of Americans work a side hustle, for reasons ranging from building a savings account to paying off debt. The side hustle has become increasingly popular, especially in the gig economy where rideshare and grocery delivery apps have made it easy for people to monetize their spare time. Read more

Frequently Asked Questions About Charging Sales Tax

March 28, 2020/in Tax Planning /by Becky Bertuzzi

Whether you run a brick and mortar business or an ecommerce business, you have to deal with charging sales tax. How and when to charge sales tax has always been a confusing issue for business owners. And since more people are now running both an ecommerce operation in tandem with a brick and mortar operation, the issues are even more confusing. Here are the answers to some of the more commonly asked questions about charging sales tax.

Be Careful With These Common Business Deductions

March 20, 2020/in Tax Planning /by Becky Bertuzzi

As a business owner, you’re entitled to a plethora of tax deductions. These tax deductions can help you to offset business income, which ultimately helps you be more profitable. Of course, you need to be careful with your tax deductions. Always consult with your CPA about which deductions are available to you, and how to take them. You don’t want to get into trouble with the IRS. Here are some common business deductions to be especially careful with.

To Gift or Not? Should you Give your Clients Holiday Gifts?

December 25, 2019/in Tax Planning /by Becky Bertuzzi

Whether it’s carols blasting in the malls, or menorahs in the window, the holiday season is upon us. For small businesses, it can be a great time to say “thank you” to the clients who’ve helped you have a successful year. Some companies choose to send holiday cards, which only cost pennies, but others want to go above and beyond. Sending a gift can make a deeper impression.

When planning your holiday shopping, should you add your clients to your list?

ASC 842, Leases, for Private Companies

December 9, 2019/in Tax Planning /by Becky Bertuzzi

The deadline for implementing the FASB’s new leases accounting standard, ASC 842, is fast approaching. Many private companies are only just now realizing that they need to examine their leases in light of the new requirements to bring most leases on-balance sheet. Adding right-of-use assets and corresponding liabilities could change important ratios and impact lending agreements, and more.

Tax Deductible Home Selling

September 3, 2019/in Tax Planning /by Becky Bertuzzi

Which Items are Tax Deductible when Selling a House?

When you list your house on the market, you’re probably thinking about how much money you’ll make or where you want to move next, not about your taxes. A home sale does have tax implications which can either help or hurt you in April.

14 Life Events That Warrant a Visit With Your CPA

August 29, 2019/in Tax Planning /by Becky Bertuzzi

Change is a constant part of life. With each change, adjustments have to be made. Certain changes in our lives puts us in a different tax category or changes how we need to file our taxes. Legally, we may come under different rules and requirements. There are tax advantages or credits that come with some of life’s changes. Below are a few events that can take place in your life where you may need some professional guidance with the filing of your taxes.

Taxes and Other Implications of Real Estate Investing for Retirement

May 30, 2019/in Tax Planning /by Becky Bertuzzi

Two of the biggest concerns of those who are investing for retirement are not running out of money and maintaining regular cash flow. It can be difficult to switch from a bi-weekly paycheck to carefully timed withdrawals from a retirement account. Market fluctuations cause balances to rise and fall, leaving an investor with less in their account than they’d planned.

Changes In The 2018 Tax Forms

April 18, 2019/in Tax Planning /by Becky Bertuzzi

With the acceptance of the Tax Cuts and Job Act reform, we are now seeing the results of one of the most expansive tax law changes in nearly thirty years. With this came large changes to the forms and reporting structures themselves. No longer are Forms 1040-A or 1040-EZ available for use – everyone must file utilizing Form 1040. While the Form 1040 itself is greatly reduced, there is additional paperwork that may need to be completed in order to properly calculate your tax breaks and deduction. In June of 2018, the IRS released the first drafts of the form for review by its partners in the industry, and after revisions, Form 1040 was approved and released for public use. Much like prior years, the Form 1040 will utilize a summary of schedules format. Taxpayers with relatively straightforward tax situations will be able to file a Form 1040 with no numbered schedules. However, for those needing to file the form with additional supplemental information, the schedules are far more extensive, including income and adjustments, tax calculations, credits and designations.