Browsing articles tagged with " small business taxes"

Tips to Start Planning Next Year’s Tax Return

Apr 30, 2013   //   by Kevin Jimeno   //   Blog  //  No Comments

For those of you who have already forgot how frustrating it was to get your taxes in order this last tax season we wanted to remind you of a classic Albert Einstein quote:

Insanity: doing the same thing over and over again and expecting different results.

via IRS.gov 

For most taxpayers, the tax deadline has passed. But planning for next year can start now. The IRS reminds taxpayers that being organized and planning ahead can save time and money in 2014. Here are six things you can do now to make next April 15 easier.

1. Adjust your withholding.  Each year, millions of American workers have far more taxes withheld from their pay than is required. Now is a good time to review your withholding to make the taxes withheld from your pay closer to the taxes you’ll owe for this year. This is especially true if you normally get a large refund and you would like more money in your paycheck. If you owed tax when you filed, you may need to increase the federal income tax withheld from your wages. Use the IRS Withholding Calculator at IRS.gov to complete a new Form W-4, Employee’s Withholding Allowance Certificate.

2. Store your return in a safe place.  Put your 2012 tax return and supporting documents somewhere safe. If you need to refer to your return in the future, you’ll know where to find it. For example, you may need a copy of your return when applying for a home loan or financial aid. You can also use it as a helpful guide for next year’s return.

3. Organize your records.  Establish one location where everyone in your household can put tax-related records during the year. This will avoid a scramble for misplaced mileage logs or charity receipts come tax time.

4. Shop for a tax professional.  If you use a tax professional to help you with tax planning, start your search now. You’ll have more time when you’re not up against a deadline or anxious to receive your tax refund. Choose a tax professional wisely. You’re ultimately responsible for the accuracy of your own return regardless of who prepares it. Find tips for choosing a preparer at IRS.gov.

5. Consider itemizing deductions.  If you usually claim a standard deduction, you may be able to reduce your taxes if you itemize deductions instead. If your itemized deductions typically fall just below your standard deduction, you can ‘bundle’ your deductions. For example, an early or extra mortgage payment or property tax payment, or a planned donation to charity could equal some tax savings. See the Schedule A, Itemized Deductions, instructions for the list of items you can deduct. Planning an approach now that works best for you can pay off at tax time next year.

6. Keep up with changes.  Find out about tax law changes, helpful tips and IRS announcements all year by subscribing to IRS Tax Tips through IRS.gov or IRS2Go, the mobile app from the IRS. The IRS issues tips regularly during the summer and tax filing season.

You can find forms and publications at IRS.gov or order them by calling 800-TAX-FORM (800-829-3676).

Additional IRS Resources:

 

Next time let us handle your Tax Return and save you the headache….

Why Start A Business?

Sep 11, 2012   //   by Kevin Jimeno   //   Blog  //  No Comments

Benefits of Starting Your Own Corporation …

  • Liability:A corporation exists as a separate legal entity from your personal life. Any debts or lawsuits are incurred by the company, not the owner. Any business with potential for lawsuits should consult with a lawyer and consider incorporation. Incorporating will offer an added layer of protection but it is still adviseable to obtain business liability insurance.

    The bad debts will often be the responsibility of the corporation. In the case of bank financing, more and more banks require business owners to sign a personal guarantee; making your personal assets collectible on a defaulted loan. Consider your options before signing.

  • Taxation:Another main benefit to incorporating is the taxation of a company. Corporations are often taxed at a lower rate and have better taxable benefits. Talk to your accountant about the tax advantages.
     
  • Raising Money:Financing a small business as a sole proprietorship or partnership can be difficult. A corporation can sell shares of the company and raise money easier than other business structure types.
     
  • Selling the Business: A non-corporate business is hard to valuate properly. A business corporation value will be based on the business, not the owner, therefore making it easy to sell the company.

Still asking “Why start a business?” …didn’t think so :)

If you are considering starting a business give us a call and let us open your corporation and guide you through the steps to make your business financially successful! 

Uncle Sam Want’s My Lunch Money

Feb 2, 2012   //   by Kevin Jimeno   //   Blog  //  No Comments

If you’re like me than you know lunch or dinner is the best place to meet with clients.
It’s more convenient and since you both have to eat, it makes
sense to turn lunch into a business expense.

Bringing in lunch for your employees can also turn a meal into a business deduction. However don’t go cray
thinking every time you have lunch you can stiff Uncle Sam.
Knowing the difference can make a big difference in your $$$ Money!

Feeding Clients

The IRS generally classes dining expenses under the broader category of entertainment
expenses and makes them a little harder to write off than one might hope. Using logic, most meals aren’t
deductible — after all, you’d still be eating lunch if you didn’t own a business or had to make a sale.

But as long as lunch passes one of the two tests used by the IRS, it can
be either entirely or partially deductible.

The first test is whether the expense is directly
related to your business. You did engage in business with the person during the entertainment period;
You were trying to make some money!

The second test is proving that your expenses were associated with business. So show proof if happen directly
or right after some wheeling and dealing on your end.

In general, you can deduct only fifty percent of your meal and entertainment business expenses .
However, depending on what kind of business you may be able to take advantage of exceptions to the
fifty percent limit. For instance, meals and entertainment provided to the general public as part of a
marketing campaign can be deducted in full.

Feeding Your Employees

If you order out for employees working late or throw a catered party for your staff,
the expense is generally deductible — although your meal may not be. Though if you buy lunch often enough,
it may be considered more of a fringe benefit.

Track of Your Business “Good Time” Expenses

You must keep that record in the moment, though — trying to recreate such a
record from bank statements and receipts at the end of the year won’t do any good. Nor should you rely
on your receipts and scribbling a description of who you ate with and why. It’s too easy to lose receipts
or to be unable to interpret just what you wrote down.

The key is that they set up a system for recording and maintaining these records that will work for them
throughout the year. It doesn’t matter if it’s on a smartphone, excel, or even if you keep the records
in a notebook. The key is that the description of the expense and basic details need to be
recorded at the time of the expense.”

Your records need to include the time, date, location, participants and a description of what business was
discussed.

A Business Based on Food

Lunch may not count but all the research you need to do does!!
All the food you try and test is part of your business cost but once again you need to prove it.

Your Own E Expenses

I know it can be confusing to know which one you does and doesn’t count. Since every situation
is different but tax professionals like Accounting Guide & Taxes are familiar with your business
and can give you more detailed advice about how to handle deducting your entertainment expenses.

Let us guide you in the right direction keeping more money in your pocket!

Call me now at 305-826-1711

9 Small Business Tax Trends for 2012

Dec 8, 2011   //   by Kevin Jimeno   //   Blog  //  No Comments

Small Businesses are looking to make extra money anyway they can. Saving on taxes in 2012 is the best way an entrepreneur can put money back in to the bottom line of the small business. Here are the tax trends for 2012:

  1. Taxes will remain a political football.
    Taxes will be one of the main issues during next year’s presidential race.

  2. Tax audits are on the rise.
    The IRS is getting real strict and are cracking down with no mercy.
    We advised a client repeatedly who was avoiding paying his payroll taxes to pay them ASAP. After the third time we called him to get him compliant with Uncle Sam, he called me back 3 hours later telling me “the boys ” had just come to pay him a little visit.

  3. Some favorable business tax rules will be extended.
    Some of the key provisions include:
    • 100 percent bonus depreciation and up to $500,000 of first-year expensing (the Section 179 deduction).
    • 100 percent exclusion for gain from the sale of qualified small business stock (stock in certain C corporations held more than five years).
    • Research credit.
    • Work opportunity credit for hiring individuals from certain targeted groups (only certain veteran groups are set to apply after 2011).

  4. State and local governments scrounge for new sources of revenue.
    Have you noticed the police setting up more peed traps in your neighborhood lately? jk…not really
    However there are many states right now looking to even include gambling in their state to increase revenue.

  5. Unemployment taxes will go up for some employers.
    Employers in 20 states will be paying higher federal unemployment (FUTA) taxes. The reason: Their states borrowed from the federal government to pay for unemployment benefits and have not yet repaid the borrowed sums. Yes, Florida is one of them.

  6. Estate planning for business owners remains challenging.
    Expect to see renewed interest in abolishing the estate tax entirely (a platform of some Republican presidential candidates) or at least maintaining the current exemption level.

  7. Filings will be almost exclusively online.
    Starting with the 2012 tax season, paid tax return preparers are required to e-file client returns if they expect to file more than 10 forms in the 1040 series and/or 1041 (the income tax form for trusts and estates). Thus, almost all individuals who use paid preparers will have their returns filed electronically. Yes, We do E-file!

  8. Low interest rates will have an impact.
    Caution: Be sure to have sufficient funds available when it’s time to pay the balance of the taxes due. Failure to pay by the April filing due date triggers both penalties and interest.

  9. The U.S. tax system will continue to become more and more complex.
    These guys in politics are to busy fighting with each other that a simple system is the last thing on their mind.

We are in some challenging times but our job is to help you take on the challenge and keep money in your pocket without breaking Uncle Sam’s rules!

If you want to break his rules then we are not the perfect match, but if saving money by cutting a big percentage of taxes from your bottom line through all the major exemptions and rules that exist out there. Call me now at 305 826-1711 or email me for a tax saving strategy session.

Business Information

Accounting Guide & Taxes, Inc.
6135 Northwest 167th Street
Miami, FL 33015, USA
305-826-1711
info@Agtaxes.com

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