Tax accounting for hobby income and expenses

Posted Leave a commentPosted in Tax Planning, Taxes

If you have an active hobby then you might find that you make some money at it. But it is important to recognize that the IRS makes a distinction between businesses run for profit and those that are hobbies without a profit motive. This post summarizes the four key differences in tax accounting between the two. […]

Why middle-income tax planning is dead

Posted Leave a commentPosted in Financial Planning, Tax Planning, Taxes

Bloomberg and Wall Street Journal ran articles this week that compile and analyze federal income tax data. These articles were meant for use as an exposé of policy tax policy. I skipped the social policy discussion entirely and I looked at the data from the perspective of a small solo CPA’s income tax service. It is interesting […]

Financial Planning Considerations When Your Business is Losing Money

Posted Leave a commentPosted in Accounting, Financial Planning, Small Business, Tax Planning, Taxes

This post was inspired by the stories of some of my neighbors and clients in southern New Jersey. Most were struggling with  a weak economy before super storm Sandy hit in late 2012. Those that re-opened over the next few years face continued business losses and the prospect of continued weakening of the local economy […]

Tax deduction for contributed time or services

Posted Leave a commentPosted in nonprofit, Taxes

I’ve often had the opportunity to work as the volunteer accountant, trustee or adviser for some great charitable organizations. In the course of this work, I meet plenty of other like-minded generous people. One amazingly common misperception that many of these people share is a misunderstanding of the tax treatment of donated time or services. […]

More on disappearance of book-to-tax accounting feature

Posted Leave a commentPosted in Accounting, Taxes

I’ve been involved in some online discussions as to why Intuit apparently introduced this book-to-tax feature after I completed my tax filing last year but then removed the feature when I needed it this year! Intuit gave no explanation either online or when I called except to sat that it will be re-introduced after the […]

Five Things I’ve Learned From Tax Preparers

Posted Leave a commentPosted in Accounting, Social Media, Tax Planning, Taxes, Values

Last month I joined an online discussion group of tax preparers. My past experience is that every online discussion group has its own personality and you don’t know the tone of the group until you really get involved. This is my first year preparing tax returns after being completely out of the field for 9 […]

Facebook Messenger for Income Tax Filing

Posted 1 CommentPosted in Data Management, Social Media, Taxes

Facebook Messenger is the dominant instant messaging service used by younger adults who increasingly use their cell phone as the primary device for electronic communications. It is possible to combine use this platform to combine various forms of communications including voice, text, video, photo and image documents. I’ve focused the development of an online income tax […]

CPA communication with a prior tax preparer

Posted 3 CommentsPosted in Accounting, Taxes

Is it ever appropriate for a CPA tax preparer to communicate with the prior CPA tax preparer in order to gain an understanding of a proposed tax engagement? Consider this situation: Prospective tax client presents his prior tax returns with a request to prepare the current tax return and all appears to be in order except […]