Tax & Accounting Insights for Irvine, CA. Expert Guidance from Bharmal CPAs
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, [...]
Misclassifying W2 Workers As 1099 Contractors
One potential business tax reduction strategy is to hire independent contractors instead of employees. If a worker’s classification fits within the tax law, it’s a legitimate strategy that can save you thousands of dollars. Sometimes the classification isn’t clear-cut. You may think you have the independent contractor classification correct, but when the IRS does the audit, you learn that those [...]
How to Make Giving Count
One of the simplest ways to slice your individual tax bill at the end of the year is by giving a gift to a qualified charitable organization. Regardless of whether it is a donation of property or cash, you are able to claim a charitable deduction for your generosity as long as you meet certain requirements. It is a great [...]
Tax Planning Checklist: Fall 2015
As we enter Fall and are rapidly approaching the holiday season, we are aware that the last thing you wish to worry about is tax preparation. However, by taking a little time to prepare for tax season you can avoid any concern or unwanted surprises as you enter into 2016. Pre-holiday tax preparation with allow you to adjust for any [...]
Resolve Your IRS Problems
The most common IRS tax problems are the following: tax money owed, no filers, and IRS levy and lien issues. Because IRS tax problems are a complicated issue, many address them in different ways. Some taxpayers decide to face the IRS on their own, while others hire a professional like a CPA, Attorney, or EA. However, the best solution [...]