Tax & Accounting Insights for Irvine, CA. Expert Guidance from Bharmal CPAs
Business Mileage Deduction
When it comes to your tax records, there’s one record that you really should keep, and it’s easily overlooked. It’s the mileage log. In an IRS audit, the mileage log often creates the first impression of your tax records. Whether you use the IRS mileage rate method or the actual expense method, you need a written record that proves your [...]
Buying a Business? Tax Planning for Noncompete Agreement
When you buy a business, you probably don’t want the former owners competing with you—at least not for a while. To prevent the competition, you will likely enter into a non-compete agreement with the former owners. The agreement has tax implications that you need to consider. As the buyer, you or your business entity must amortize amounts allocated to non-compete [...]
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 [...]