I recently met with a new client who was audited on a tax return he prepared and e-filed in the prior year. The only change on his return was the reclassification of a Schedule C business to a hobby. When that occurs, losses cannot be deducted, as expenses are only allowed to the extent of business income.
Here were the circumstances of my new client for the year he was audited:
More than 50 individual and business tax deductions and credits were signed into law in December 2014 as part of “The Tax Increase Prevention Act”.
Tags: Tax Provisions, Tax Deductions, Retirement Plan, Depreciation Deduction, Tuition, Section 179, Work Opportunity, Classroom Expenses, Local Income Tax, Tax Credit, IRA, Mortgage, Sales Tax, State Income Tax
At BHT&D CPAs, we get many questions regarding charitable donations throughout the year. Here are a few things to consider as you make your donations:
Tags: Tax Planning, Tax Deductions, Donation to Charity, Charitable Deductions
We are often asked whether it is better to lease or purchase business equipment.
Tags: Small Business Accounting, Depreciation Deduction, Lease or Purchase Equipment
If you are a farmer and paid quite a bit of tax last month on April 15, you may be asking, "What can I do to minimize my 2014 taxes?"
Tags: Agriculture, Tax Planning, Minimize Taxes, Farm Taxes
A tax planning question we often hear is: "I have a Schedule C business I report directly on my individual Form 1040. As I approach the end of the year, what are some tax planning ideas to save income taxes for 2013?" Let's answer that question.
Due to the Federal Government Shutdown, an IRS-wide furlough began on October 1, 2013 for most IRS employees. Only 8,700 of the 95,000 IRS employees remain on the job at this time. At this time, you should know that:
The question we are addressing in today's article: "I understand there is now a Simplified Option for claiming the Home Office Tax Deduction. What are the rules?"
On January 1, 2012 the American Taxpayer Relief Act of 2012 was passed by the U.S. Congress and signed into law by President Barack Obama on January 2nd. It will take effect in 2013 and will impact most taxpayers. Do you know how this will effect you?
Tags: American Taxpayer Relief Act of 2012, Individual Tax Return, Fiscal Cliff Legislation
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