Tax & Accounting Insights for Irvine, CA. Expert Guidance from Bharmal CPAs
Home Office Deduction
The home-office deduction is becoming more and more popular, and we thought you would like some insights. The tax code gives you only four ways to qualify for the home-office deduction: Cash register - Principal place of business (the office from which you make the cash register ring). This method of qualifying is generally referred to as the Soliman rule. Administration [...]
Domestic Production Activities Deduction
You may not think of yourself as a manufacturer, but you might nevertheless qualify as one under tax law. There is a deduction for manufacturing that applies to a much broader array of activities than you would think. There’s no catch and no recapture associated with this deduction—it’s just extra cash for your wallet. The deduction, in general, is for [...]
Missed Depreciation? Tips on How to Fix Your Error
It’s common many business owners forget to depreciate their assets and if you have a depreciation error that needs correction, follow these steps. We have some good news on this error: First, you don’t have to pay the IRS user fees (which can vary from around $2,000 to $10,000), because your depreciation change is going to qualify as an automatic [...]
Session Reporting for Gambling Taxes
As a casual gambler, you will pay less in taxes if you follow session reporting, because you net your activity for that day. Unfortunately, the only crystal-clear session advice from the IRS is on slot machines. In Shollenberger, the court used the IRS Advice Memorandum 2008-011 on session reporting to find that Mr. and Mrs. Shollenberger entered the casino with [...]
Two Vehicle Strategy
Do you have two or more cars in your household? If your circumstances are right, we might find a hefty increase in deductions for you with the two-car strategy. If this strategy works for you, you don’t have to drive one mile farther. You don’t have to spend one additional penny. All you need are the right circumstances and a [...]
Deducting Overnight Travel Expenses
As you know, you can deduct your away-from-home overnight travel expenses. But what tax rules do you need to know if you want to travel, or need to travel, to an out-of-town business location for an extended period? First, your travel to and expenses of living in this out-of-town location are deducible only if this is a temporary work location, [...]