Tax & Accounting Insights for Irvine, CA. Expert Guidance from Bharmal CPAs
Pass Through Entities and the Tax Cuts and Jobs Act
Pass through entities include, LLCs, partnerships, S Corporations and sole proprietorships. It means that profits and losses from the business pass through directly to the shareholder’s individual tax returns. Under the Tax Cuts and Jobs Act, for tax years beginning after December 31, 2017 through December 31, 2025, some individuals will be able to deduct 20% of their Qualified Business [...]
Five Tips For Hiring a Quickbooks Consultant
So, you have gotten your business up and running and have decided to hire a Quickbooks Consultant. What should you look for? Here are five tips for hiring the right person for your business: Do Your Research. You want to make sure that you hire a person that is a good fit for your business. Before hiring someone, check around, [...]
Four Types of Employees and How to Pay Them
The IRS Schedule C (Form 1040), which is titled Profit or Loss from Business is mainly used by self-employed individuals (sole proprietors/independent contractors). The Schedule C form is used to report profit or loss from a business operated by a sole proprietor. Any activity qualifies as a business if the primary purpose for engaging in the activity is to generate [...]
How Do You Really Know If Its Really IRS Calling
Telephone scams have been on the “Dirty Dozen” list of the IRS for some time now. The following adage is true, where there is a will, there is a way, and each year unscrupulous individuals seem to find ways to use a telephone and other scams to bilk unsuspecting individuals out of thousands and thousands of dollars. So, how do [...]
Virtual Currency FAQs
The use of virtual currencies have become more widespread in today’s economy. According to the IRS, a virtual currency is “a digital representation of value that functions as medium of exchange, a unit of account, and/or a store of value.” Virtual currencies may be used to pay for goods and services or used as investments. Virtual currencies can also have [...]
Differences Between Exemptions, Credits, and Deductions
Knowing the difference between an exemption, a credit and a deduction, can be confusing. In this article, we are going to summarize each topic for you. EXEMPTIONS: A tax exemption can reduce or eliminate your obligation to pay taxes. For tax purposes, there are two categories of exemptions: personal exemptions and dependency exemptions. Each exemption that is claimed reduces income [...]