Car Depreciation Rules One of the most common questions we receive is regarding how depreciation deductions are determined for automobiles used for businesses. In fact, special limitations apply which may result in it taking longer for you to depreciate a car than it would other business property. Depreciation by “Actual Expense” First of all, note that a separate depreciation allowance for a car only comes into play if you choose … Read more
Don’t roll the dice with your taxes if you gamble this year For anyone who takes a spin at roulette, cries out “Bingo!” or engages in other wagering activities, it’s important to be familiar with the applicable tax rules. Otherwise, you could be putting yourself at risk for interest or penalties — or missing out on tax-saving opportunities. Wins You must report 100% of your wagering winnings as taxable income. … Read more
To deduct business losses, you may have to prove “material participation” You can only deduct losses from an S corporation, partnership or LLC if you “materially participate” in the business. If you don’t, your losses are generally “passive” and can only be used to offset income from other passive activities. Any excess passive loss is suspended and must be carried forward to future years. . Material participation is … Read more
3 mutual fund tax hazards to watch out for Investing in a mutual fund is an easy way to diversify a portfolio. Which is one reason why they’re commonly found in retirement plans such as IRAs and 401(k)s. But if you hold such funds in taxable accounts, or are considering such investments, beware of these three tax hazards: High turnover rates. Mutual funds with high turnover rates can create income … Read more
Throw a company picnic this summer and enjoy larger tax deduction Many businesses host a picnic for employees in the summer. It’s a fun activity for your staff and you may be able to take a larger deduction for the cost than you would on other meal and entertainment expenses. Deduction limits Generally, businesses are limited to deducting 50% of allowable meal and entertainment expenses. But certain expenses are 100% … Read more
Entrepreneurs: What can you deduct and when? Starting a new business is an exciting time. But before you even open the doors, you generally have to spend a lot of money. You may have to train workers and pay for rent, utilities, marketing and more. Entrepreneurs are often unaware that many expenses incurred by start-ups can’t be deducted right away. How expenses are handled on your tax return When planning … Read more
