Category Archives: Small Business Tax

Depreciation rules for automobiles

Depreciating business property must be done carefully. One of the harder types of business property to depreciate is cars. Special limitations apply which may result in it taking longer for you to depreciate a car than it would other business property. Depreciation rules for automobiles First of all, note that a separate depreciation allowance for a… Read More »

Information about Schedule C and Taxes

What is a Schedule C and who needs to file it? Schedule C is the federal tax form filed by most sole proprietors; one owner businesses. As you can tell from its title, Profit or Loss from Business, it’s used to report both income and losses. Many times, Schedule C filers are self-employed taxpayers who… Read More »

“SIMPLE” retirement plans and simple 401(k) plans

The availability of “SIMPLE” retirement plans: “savings incentive match plan for employees.” This type of plan is targeted at businesses with 100 or fewer employees, and is designed to offer greater income deferral opportunities than individual retirement accounts (IRAs), with fewer  restrictions and administrative requirements than traditional pension or profit-sharing plans. Small business might want to consider… Read More »

What is Section 1244 Stock?

Ordinarily, a loss on a sale or exchange of stock is a capital loss. Capital loss treatment is generally less advantageous than ordinary deduction treatment because of the fact that a capital loss recognized by an individual is applied, first against capital gain (which is usually subject to tax at a maximum marginal rate which is lower than… Read More »

Misclassification of Worker IRS Penalties

As we have seen, the status of a worker as either an independent contractor or an employee must be determined accurately in order to ensure that workers and businesses can anticipate and meet their tax responsibilities. Businesses decide whether to hire employees or independent contractors depending on individual needs, customer expectations, and worker availability. Either… Read More »

Tax Tips for Direct Sellers

The IRS has released a fact sheet that provides guidance to direct sellers on reporting income, properly claiming deductions, and inventory recordkeeping. As you probably know, a direct seller’s compensation is related to sales rather than to the number of hours worked. Services are performed under a written contract between the direct seller and the… Read More »

Changes Health Care Tax Credit for Small Business

Small employers should be aware of changes in the tax credit health care for small businesses, a provision of the Affordable Care Act ACA. This arrangement provides a tax credit to eligible small employers that provide health care to their employees. The intended goal of this legislation is to help more Americans get health insurance… Read More »