Celebrating a 3rd Year Anniversary with a Client

Celebrating a 3rd Year Anniversary with a Client

This past weekend I celebrated the 3rd year anniversary of a client’s business with other members of his club. I met Dan of 9Round when he called my office prior to his opening to discuss his upcoming needs. I was about to have a book signing at the local Barnes & Noble for Business Success With Ease (see http://affordablebookkeepingandpayroll.com/bswe/ for book details). I invited Dan to stop by the event since I would be sharing information I thought would be helpful for him. A couple of months later, I was at our Chamber Business Expo and saw he had a table and was promoting his grand opening coming up and I took the information he shared on attending that day for free. I’d never been to a kickboxing studio, and I was interested to find out about it. I invited a good friend of mine to join me. I have to admit I don’t really like exercising that much (there are other things I’d rather do!), but it was a fun way to exercise if I was going to do it. Although I don’t normally trade services with clients (I usually just purchase their products/services and they purchase mine), when he said he was ready for bookkeeping assistance, I offered a trade. Rather than charge him for the QuickBooks set-up, he gave me the same value in classes. I figured if I had a financial investment, I’d be more likely to go. I like 9Round Torrance for a few reasons which include: Dan and his staff are very kind and patient with the members. It doesn’t matter if your fitness is...
Tax Benefits for Education

Tax Benefits for Education

It’s August and many parents have children heading to college soon, and there are tax benefits for education. Are you aware you may qualify for some credits or deductions on your income tax return? Following is information you may find helpful regarding this topic: A tax credit reduces the amount of income tax you may have to pay. A deduction reduces the amount of your income that is subject to tax, thus generally reducing the amount of tax you may have to pay. An education credit helps with the cost of higher education by reducing the amount of tax owed on your tax return. If the credit reduces your tax to less than zero, you may get a refund. There are two education credits available: the American opportunity tax credit and the lifetime learning credit. You must meet all three of the following for either credit: You, your dependent or a third party pays qualified education expenses for higher education. An eligible student must be enrolled at an eligible educational institution. The eligible student is yourself, your spouse or a dependent you list on your tax return. If you’re eligible to claim the lifetime learning credit and are also eligible to claim the American opportunity credit for the same student in the same year, you can choose to claim either credit, but not both. In the past, there were also deductions you may have been able to take on your tax return. These included: Tuition and Fees –  The tuition and fees deduction could reduce the amount of your income subject to tax by up to $4,000. You could not claim the tuition and fees deduction as...
Tax Court Slams the Brakes on Vehicle Deduction Claim

Tax Court Slams the Brakes on Vehicle Deduction Claim

Do you claim deductions for your vehicle? If you do, make sure to keep a detailed log of your of all your businesses trips. There are many taxpayers who have tried and failed to take advantage of these deductions, including the recent example of Katrina Taylor. Ken Berry, from Accountingweb.com, reviews the case and discusses what we can learn from this misguided taxpayer’s mistakes. Katrina Taylor et vir v. Commissioner, TC Memo 2017-99, the taxpayer committed a multitude of sins – including errors, omissions, and inflated expenses – that brought upon her downfall. Katrina Taylor’s husband operated a recycling business in West Virginia. At the same time, she operated a long-term care billing business. Taylor claimed that she sought out healthcare providers, mainly nursing homes and hospitals, and offered to review their customer accounts. Then she allegedly proposed to prospective clients that if she collected on any past-due accounts, they would pay her a percentage of the amount collected. Taylor also worked full-time at a hospital. During the tax years in question, Taylor included her business income and expenses, consisting mostly of alleged car and truck expenses, on the Schedules C for her husband’s recycling business. Those Schedules C did not indicate which income and expenses were attributable to which business. Subsequently, the IRS disallowed the couple’s deduction for car and truck expenses. So the taxpayer took her case to the Tax Court. At trial, the couple produced spreadsheets showing that Taylor made 144 distinct trips between their home and prospective client sites. Each entry had a date, a destination, beginning and ending odometer readings, total miles driven, and...
GO-Biz Accepting Applications for California Competes Tax Credit

GO-Biz Accepting Applications for California Competes Tax Credit

Would you be interested in having tax credits for your business? The third quarter application period is open for businesses interested in applying for the California Competes Tax Credit program. The program is provided by the Governor’s Office of Business and Economic Development (GO-Biz), which offers a variety of different services to help business owners including international trade development, regulation guidance, small business assistance, and assistance with state government. With information shared by the CalChamber’s website, you can learn how this program could potentially help your business and how you can apply. The California Competes Tax Credit is an income tax credit available to businesses that want to come, stay, or grow in California. Tax credit agreements are negotiated by GO-Biz and approved by a statutorily created “California Competes Tax Credit Committee,” consisting of the State Treasurer, the Director of the Department of Finance, the Director of GO-Biz, and one appointee each by the Assembly Speaker and Senate Rules Committee. This program is open to any business planning to create new full-time jobs in the state, regardless of size or location. Businesses can access the online application here. Applications must be submitted by August 21. Since 2014, GO-Biz has allocated $492.5 million to 688 companies projected to create 70,747 new jobs and $14.4 billion in new investments. Members of the CCTC team are available to provide technical application assistance. An application guide, Frequently Asked Questions (FAQs) and program regulations are available on the California Competes Tax Credit page. If you would like to learn more information on CCTA program, you can participate in an upcoming online webinar hosted by...
New Form I-9 Released, Again

New Form I-9 Released, Again

A new revised I-9 form has been published by the U.S. Citizenship and Immigration Services (USCIS). The form has been updated twice in less than one year and has a revision date of 07/17/17 N. Shared by CalChamber.com, Gail Cecchettini Whaley has brought this information to our attention in her recent article on what specific revisions have been made. By September 18, 2017, employers must use only this new version (rev. 0/7/17/17 N). Until then, employers can continue using Form I-9 with a revision date of 11/14/16 N or use this new version. The Instructions for Form I-9 and the Form I-9 Supplement have also been updated. One change relates to the timing of when the Form I-9 must be completed. Previously, the form and instructions stated that the employee must complete Section 1 “by the end of the first day of employment.” Now, the USCIS has removed “the end” from the phrase, and the employee must complete Section 1 “by the first day of employment.” According to the revised Handbook for Employers: Guidance for Completing Form I-9, the employee must complete Section 1 “at the time of hire (by the first day of their employment for pay).” Remember, employers cannot ask an individual to complete Section 1 before he/she has accepted a job offer. According to the USCIS, revisions also include: A change to the name of the Office of Special Counsel for Immigration-Related Unfair Employment Practices to its new name, Immigrant and Employee Rights Section. Revisions related to the list of acceptable documents on Form I-9: Added the Consular Report of Birth Abroad (Form FS-240) to List...

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