Can You Take the Clothing Tax Deduction?

By Evlyn Carlile & Shelly Cedarblade I have heard several times this year, “Everyone I know is taking the tax deduction for clothing.” Just because everyone you know is using work clothes as a deduction doesn’t mean it is legal! The IRS does allow a deduction for the cost and maintenance of work

IRS Tips for Reducing Tax-Time Stress

Tax preparation doesn’t need to give you a headache. There are several ways to make it easier on yourself. The IRS offers three tips to help make your tax-filing experience a breeze this year. Don’t procrastinate. Resist the temptation to put off your taxes until the very last minute. Rushing to meet the

Tax Advantages of Hiring Your Children

By Evlyn Carlile & Shelly Cedarblade Hiring your children as employees can be beneficial for both your children and your business. If you are a sole proprietor, there are tax advantages for your business and your children will gain valuable work experience working for you. Tax Advantages to Hiring Your Children If

Will I Get Audited? Errors That May Get you Audited

Will I get audited? This is a question that many small business owners often ask themselves. Be careful when it comes to your deductions. The IRS looks for higher-than-average deductions in each category as a signal that things may not be right. The most common deductions that stand out as potential problems are

IRS Red Flags ~ Errors that May Increase Your Chance of Being Audited

Failing to report all taxable income, you and your 1099 – MISC, can signal an IRS red flag and increase your chance of being audited. The IRS gets copies of all 1099s that you receive and they match the numbers on the forms with the income shown on your return. A mismatch sends

Why You Should Scan Your Business Expense Receipts

All business owners should buy a receipt scanner and scan your business expense receipts. WHY? Picture this scenario ~ you are in an IRS audit and the auditor asks to see your business expense receipts. As you pull out your business expense receipts, you discover that the ink on all them has faded

Asset or Expense?

Asset or Expense? This is a major question to plagues business owners. What is an Asset An asset is any major purchase that will last in your business for more than one year. Some examples of assets are: equipment, furniture, building and land, and vehicles. When purchasing an asset, you will need to

Keeping Track of Allowable Business Expenses and Income

Here are a few tips to keep track of your allowable business expenses and income. By following these tips you may keep your tax preparer happy and possibly cut your tax preparation bill by a few dollars. During the year you accumulate bills and collect monies for your business. At tax time you

1099, 1096 and W-9 Forms

Have you hired a sole proprietor to provide a service for your company? Did you pay them $600 or more during 2011? If you have answered “yes” to these two questions, you need to send a 1099 to them by January 31, 2012 as well as send a copy to the government agencies

Five Easy to Follow Bookkeeping Tips

Tip #1 Do you have a hobby or business? Do you expect to make money from your efforts? If the answer is “YES,” you will need to establish yourself as a business! Make sure you: Keep business and personal expenses separate Open a separate checking account for your business Draw money out of your business

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