Tax & Accounting Insights for Irvine, CA. Expert Guidance from Bharmal CPAs
IRS to Limit Passport for Unpaid Taxes
As you know, whether traveling for business or pleasure, you need a valid passport for most trips outside the United States. These days, you even need a passport to fly to and from Canada or Mexico. We want to make you are aware of a new law that’s on the books that requires and/or authorizes the State Department to deny, [...]
Offer in Compromise
Do you owe Uncle Sam more than you can pay? Perhaps for this tax year, prior tax years, or a combination of both. Like any other creditor, the IRS will sometimes settle your debts for less than you owe, also known as an offer in compromise. The offer in compromise is a powerful tool to resolve unpaid tax debts that you’ll never [...]
Renting Your Home to a Corporation
Here are answers to six questions I’ve gotten about the big tax benefits of renting your personal residence to your corporation for 14 days or less. Q&A 1 Q: Must my corporation issue Form 1099-MISC to me for the rent paid to me for the rental of my home? A: Yes, the corporation must issue Form 1099-MISC if the rent [...]
Forming an LLC
When you form an LLC, you need to draft articles of organization that comply with the state’s LLC act and then file the articles with the appropriate state office. Typically, the required articles are broadly worded and likely don’t address members’ rights and responsibilities as you would like them addressed. Furthermore, most state LLC acts provide default rules that can be [...]
Trading or Selling Your Old Business Vehicle
Since you report your business income and expenses on Form 1040, Schedule C, you have a unique tax-planning possibility when replacing your old business vehicle and when the following situations occur: your taxable self-employment income (Schedule C income) is $137,727 or less; you are using actual expenses (not the mileage rate) to deduct the replacement vehicle; and the outright sale [...]
Tax Audit Tips for Travel, Entertainment, and Education
We have a question that you likely do not want to hear: how would your travel, entertainment and education tax records hold up in an IRS audit? Do you think you could get them in shape before the IRS gets to you? Think again. This is highly unlikely to work, for three reasons: You have violated the timely records rule, [...]