Tax & Accounting Insights for Irvine, CA. Expert Guidance from Bharmal CPAs
Buy & Sell Agreement: Protect Your Business
If you are buying a business that will include more than one co-owner, you need a buy-sell agreement—period. You have multiple reasons to put a buy-sell agreement in place and not one reason not to have a buy-sell agreement. A well-drafted agreement can do these valuable things for you: Transform your business ownership interest into a more liquid asset Prevent [...]
Can You Deduct Related Party Losses?
Here’s a tax rule that can make you unhappy. If you sell property to a related party, you may not deduct your loss on the sale. And this gets worse. The loss you cannot deduct no longer belongs to you. It moves to the related party, and that can really complicate matters. This brings up two questions: Who are your [...]
Three Ways to Increase Revenue
Often times when business owners plan ways to increase profits, they focus on attracting more customers and making more sales. This can boost the business’s top line i.e. revenues. However, it usually equates to working harder and spending money on marketing. And while there’s nothing wrong with either, it won’t ensure an increase in your bottom line i.e. the net [...]
Deductible Back-To-School Expense
Parents: Some of your back to-school expenses might actually be tax deductible. For example, if you make annual donations to your kid’s public school, you may be able to deduct the donation amount from your taxable income. It depends on who benefits from your donation. If your donation of money or equipment is for the benefit of all students or [...]
IRS Tips for Natural Disaster
Hurricanes and tropical storms affect many of us, and no one is immune to natural disasters in general. Currently heavy rain and severe flooding caused by Hurricane Harvey have affected the states of Texas and Louisiana. The Internal Revenue Service offers the following advice to help you be prepared: Go Electronic You may have access to bank and other financial [...]
Tax Rules on Gambling Winning and Losses
If you gamble periodically, then you need to read this. We want to share with you three basic tax rules on gambling: Rule 1: Your winnings are taxable. Your gambling income is taxable. And—just as important—it’s reportable. For example, when you win $1,200 or more from a slot machine, the casino must report your winnings on Form W-2G and send [...]