There seems to be a broad misunderstanding of our income tax system. Many argue that our nation could not function without the personal income tax revenue. Let’s break this down a little bit. Fuel tax that is built into the price at the pump pays for our roadways and infrastructure. Property taxes pay for the [...]
Small business is indeed the backbone of our economy. All owners I talk to have one problem in common. This is marketing. There are two ways to grow your business. You can either get more customers or sell more to your existing customers.
Our public school systems teach us to be good employees. Marketing skills [...]
Did you know that you can deduct war reenactment expenses on your taxes? It’s true. This even held up in an IRS audit I recently helped a client with. If the event is sponsored by a public or non-profit group and it is for public benefit, then it qualifies for a tax deduction.
So all you [...]
I’m sure most everyone has heard about the new homebuyer tax credit. If you purchase home by December 1, 2009, and you qualify as a first-time homebuyer, you will be eligible for up to $8,000 in additional refund from the IRS.
That’s right….they will actually pay you to buy a home. This credit does begin to [...]
Amended tax returns cannot be e-filed. You must mail them in. When filing an amended tax return, the typical response time has historically been 6-8 weeks. With the recent first time homebuyer tax credit, the IRS is getting backed up.
The amended returns are now being turned around in 12-16 weeks. We have done many of [...]
The latest data I read shows that IRS income in 2009 is down 42% from 2008. What does this mean for you and me? Uh….can you say aggressive.
Yes, they have hired more auditors to keep us all in line and make sure they extract all they can from us. I have helped many clients over [...]
These guys are getting re-acquainted with Joe the taxpayer. Their revenue is down 42% from last year. I have seen more IRS letters this past summer than in the entire past 3 years combined.
This is a disturbing trend. This can be intimidating and frustrating, and I don’t recommend going it alone unless it is a [...]
Rental property improvements, capitalization
I get many questions regarding rental property improvements and depreciation. Typically, any improvement or modification that adds value and extends the life of a property will need to be depreciated over a period of several years. For residential property, this period is 27.5 years, and 39 years for commercial property.
Some improvements can [...]
I have seen more IRS letters this year than in the last three years combined. They have expanded their auditor workforce.
I know how frustrating these letters can be. They are written in generic, computer-generated language that is hard to decipher.
Don’t assume that just because you received a notice that the IRS is correct. They are [...]
Did you know that some employees can deduct their work mileage? It’s true.
If your mileage is significant, you can deduct the amount over 2% of your adjusted gross income along with your other itemized deductions.
You cannot deduct mileage to your everyday workplace. You can, however, deduct mileage to any location other than your normal workplace.
Here [...]
