Tax & Accounting Insights for Irvine, CA. Expert Guidance from Bharmal CPAs
Keeping a Good Tax Records Will Save You From IRS – Home Improvement
We are sure there are many parts of the tax code that you don’t like, particularly the parts where you have to keep tax records. Here’s a court case that will help you appreciate the need for good tax records. We know that you don’t like it. But you have to accept it. You are in a business and personal [...]
Purchasing Your Leased Vehicle For Business Is Beneficial
Before the Tax Cuts and Jobs Act (TCJA), your purchase of the vehicle you were leasing did not qualify for either Section 179 expensing or bonus depreciation. But times have changed. The TCJA made two changes that mean 100 percent bonus depreciation is available on the vehicle you lease and then purchase, regardless of whether you purchase it during the [...]
Beware of Dishonest Tax Preparers
Here’s a rule: Protect yourself. Do not engage dishonest tax preparers. And here’s a story that we want you to hear. The government indicted, tried, and convicted tax preparer Gregory D. Goosby of 30 fraud violations where he willfully aided and assisted in the preparation of false and fraudulent income tax returns. Vincent Allen engaged Goosby to prepare his tax [...]
Property Improvements Under the New Tax Law
Qualified improvement property is any improvement to the interior portion of a building that is nonresidential real property (think office buildings and shopping centers) if you place the improvement in service after the date you place the building in service. Lawmakers intended qualified improvement property to be 15-year property and eligible for 100 percent bonus depreciation. Not so. Due to [...]
Deducting Medicare Reimbursements to Your Employees
The Affordable Care Act’s $100-a-day penalty for improper medical reimbursements likely has your attention. And it should. But you can find many reimbursements that are allowed without penalty, including the ability to reimburse Medicare when you have fewer than 20 employees. Some group insurance plans do not cover Medicare-eligible employees if the group plan covers fewer than 20 employees because: [...]
Tax Deduction for Classic or Antique Car Used for Business
How does the tax law treat the classic or antique car when you use it for business? Can you deduct it just as you would any car you use in business? To deduct the classic or antique car, • the car must be of a type that’s subject to wear and tear, decay, decline, or exhaustion; and • the car [...]