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If you use a portion of your home for business purposes, you may be able to take a home office deduction whether you are self-employed or an employee. Expenses that you may be able to deduct include the business portion of real estate taxes, mortgage interest, rent, utilities, insurance, depreciation, painting, and repairs. You can claim this deduction for the business use of a part of your home only if you use that part of your home regularly and exclusively:
Generally, the amount you can deduct depends on the percentage of your home that you use for business. Your deduction will be limited if your gross income from your business is less than your total business expenses. If you use a separate structure not attached to your home for an exclusive and regular part of your business, you can deduct expenses related to it. The rules vary depending on whether you’re self-employed, a qualified daycare provider, or storing business inventory or product samples. If you are an employee, you have additional requirements to meet. The regular and exclusive business use must be for the convenience of your employer. Call us if you want to explore deducting for the business use of your home. |
Posts Tagged ‘Tax’
Deducting Your Home Office
Friday, July 15th, 2011Protecting Financial Records from Disaster
Wednesday, July 13th, 2011|
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| Individuals and businesses can safeguard their tax records against disaster by taking a few simple steps.
Create a Backup Set of Records Electronically. Keeping a backup set of records – including (more…) |
Haven’t Filed an Income Tax Return? What to Do
Tuesday, May 3rd, 2011|
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Filing a past due return may not be as difficult as you think.Taxpayers should file all tax returns that are due, regardless of whether full payment can be made with the return. Depending on an individual’s circumstances, a taxpayer filing late may qualify for a payment plan. It is important, however, to know that full payment of taxes upfront saves you money.
Here’s What to Do When Your Return Is LateGather Past Due Return Information Gather return information and come see us. You should bring any and all information related to income and deductions for the tax years for which a return is required to be filed. Payment Options – Ways to Make a Payment There are several different ways to make a payment on your taxes. Payments can be made by credit card, electronic funds transfer, check, money order, cashier’s check, or cash. Payment Options – For Those Who Can’t Pay in Full Taxpayers unable to pay all taxes due on the bill are encouraged to pay as much as possible. By paying as much as possible now, the amount of interest and penalties owed will be lessened. Based on the circumstances, a taxpayer could qualify for an extension of time to pay, an installment agreement, a temporary delay, or an offer in compromise. Taxpayers who need more time to pay can set up either a short-term payment extension or a monthly payment plan.
What Will Happen If You Don’t File Your Past Due Return or Contact the IRS It’s important to understand the ramifications of not filing a past due return and the steps that the IRS will take. Taxpayers who continue to not file a required return and fail to respond to IRS requests for a return may be considered for a variety of enforcement actions. Please contact us for further information and support on your late returns. |
2010 Tax Relief Act Creates a 100% Write-off for Heavy SUVs Used Entirely for Business
Friday, January 28th, 2011|
Eric Lasch, Senior Tax Manager
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Although generous tax breaks for gas-consuming heavy SUVs have in the past raised the ire of Congress, the 2010 Tax Relief Act actually made tax breaks for these assets even more generous. Although it may be an unintended result, the limited-time 100% bonus depreciation allowance for qualified property under the new law allows taxpayers that buy a new heavy SUV and use it entirely for business to write off the entire purchase price in the placed-in-service year. 2010 Tax Relief Act – Personal Income Tax
Tuesday, January 4th, 2011|
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| On December 17, 2010, The Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010 was signed into law by the President. The personal income tax provisions in this law provide for an extension of the Bush-era tax cuts which were scheduled to expire at the end of 2010. The 2010 Tax Relief Act temporarily extends most of the tax cuts for 2011 and 2012 only. (more…) |
Tax Tip: Expanded Adoption Credit
Friday, November 12th, 2010|
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| The Affordable Care Act raises the maximum adoption credit to $13,170 per child in 2010, up from $12,150 in 2009. It also makes the credit refundable, meaning that eligible taxpayers can get it even if they owe no tax for that year. In general, the credit is based on the reasonable and necessary expenses related to a legal adoption, including adoption fees, court costs, attorney’s fees, and travel expenses. Income limits and other special rules apply.
If you adopted a child this year, you may be eligible for this credit. Make sure you contact us early, though. To claim this tax relief, we must file a paper return, which means your refund will be slower than if you could file electronically. |
Income from Foreign Sources
Friday, November 12th, 2010|
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| Many U.S. citizens earn money from foreign sources. But not all these taxpayers remember that they have to report all such income on their tax return, unless it is exempt under federal law.U.S. citizens are taxed on their worldwide income. This applies whether a person lives inside or outside the United States. The foreign income rule also applies regardless of whether the person receives a Form W-2, Wage and Tax Statement, or a Form 1099 (information return). (more…) |
Key Tax Developments During the Third Quarter
Friday, October 15th, 2010|
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| The following is a summary of the most important tax developments that have occurred in the past three months that may affect you, your family, your investments, and your livelihood. Please call us for more information about any of these developments and what steps you should implement to take advantage of favorable developments and to minimize the impact of those that are unfavorable. (more…) |
Small Business Jobs Act – Learn What’s In It
Tuesday, September 28th, 2010|
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The recently enacted 2010 Small Business Jobs Act includes a wide-ranging assortment of tax breaks and incentives for small business. Here’s a brief overview of the tax changes in the new law. Tax breaks and incentives Enhanced small business expensing (Section 179 expensing). In order to help small businesses quickly recover the cost of certain capital expenses, small business taxpayers can elect to write off the cost of these expenses in the year of acquisition in lieu of recovering these costs over time through depreciation. Under pre-2010 Small Business Jobs Act law, taxpayers could expense up to $250,000 of qualifying property—generally, machinery, equipment and certain software—placed in service in tax years beginning in 2010. This annual expensing limit was reduced (but not below zero) by the amount by which the cost of qualifying property placed in service in tax years beginning in 2010 exceeded $800,000 (the investment ceiling). Under the new law, for tax years beginning in 2010 and 2011, the $250,000 limit is increased to $500,000 and the investment ceiling to $2,000,000. |
Gift Taxes
Monday, September 6th, 2010|
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If you gave any one person gifts in 2010 that were valued at more than $13,000, you must report the total gifts to the Internal Revenue Service. You may have to pay tax on the gifts. The person who receives your gift does not have to report the gift to the IRS or pay gift or income tax on its value. |
