Category: Small Business
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A better way to take a home office deduction
IRS and state tax authorities allow taxpayers to deduct expenses for areas of their home used exclusively for a home office. But there are downsides and risks to taking the deduction. Those disadvantages include: Part of the sales price of the home may eventually become taxable (most home sales are otherwise non-taxable) Detailed accounting records…
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Concerns for the regional remodeling industry?
The National Association of the Remodeling Industry (NARI) announced the winners of its highly regarded Contractor of the Year awards in 37 project categories. I noticed that none of the awards were issued to contractors of homes on the east coast metropolitan region. This is quite different from when I was president of the local…
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Professional tax filing by cell phone
Need professional help with taxes? Just text 856-723-0294 for instructions for filing by cell phone for as little as $30 for simple returns.
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Still the Unaffordable Care Act to CPAs
I received this message embedded in an email from a peer CPA this morning: “I am also determined to vote for whoever will work to repeal the unaffordable care act. It has affected everyone on so many levels and no one from the people to the insurance companies to the government knows what they are doing”.…
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CPAs: “from crisis manager to opportunity director”
The theme of this year’s New Jersey CPA convention is changing our primary roles and focus “from crisis manager to opportunity director”. My mantra over the past few years is that CPAs need to be the agents of change for today’s businesses. I’m looking forward to hearing more about what others are doing in this…
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SEP IRA or Solo 401(k)?
If you are self-employed, is it best to use a Simplified Employee Pension Individual Retirement Account (SEP IRA) or a one person 401(k) plan? The answer depends on a range of factors that should become clear in a short discussion of your objectives. Both are easy and inexpensive methods to save on current taxes and…
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Help for last-minute tax filers
These final 20 day of tax season can be stressful on taxpayers and tax preparers. I will work at least 14 hours a day in order to meet my own work deadlines and contribute to the workload of other tax preparers. Yet it makes sense for a young accounting practice to reserve time for new…
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New Jersey business drain continues
New Jersey faces a serious problem with business owners leaving the state. Some have called it the “millionaire drain”. I prefer to call it the “job creator drain”. I am among those small business owners who have given up NJ residency, although I still hold out hope for recovery and the possibility of returning someday.…
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Section 105 medical plan for self-employed’s spouse
Is anybody still marketing Section 105 medical reimbursement plans to self-employed people? IRS made it a point to highlight the restrictions in recent years and it seems that most self-employed people and their advisers got the message. But today I received a call from a guy who says that some reputable firms including an ex-IRS lawyer are…
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The most common small business tax screw-up
Perhaps the most common small business screw-up that generates tax penalties? IRS requires that when you make business expense payments to individuals (as opposed to corporations), you must additionally send them a form 1099-MISC unless an exception applies. My simplified chart is intended to make it easy to identify the exceptions. In reality, it is…