Archive for the ‘Tip Of The Day’ Category

Deduction #40. Antiseptic

When is antiseptic deductible? When it has a business purpose. If you need it for your products or services, then definitely it’s deductible. If it’s used for your office or for medical purposes (in the business), then it’s deductible. Remember in order to have a business deduction, it must be ordinary and necessary to the ...

Deduction #39. Answering machine

I don’t know about you, but I don’t have an answering machine. I use the phone company’s voice mail. Still, answering machines are pretty cool for screening calls and if you watch many made-for-TV thriller type movies, you’ll see a lot of answering machines. Is it deductible? It depends. If it’s used in the business, ...

How Can You Get Your IRS Bank Levy Released?

The IRS is going to give you plenty of notice. Still, a bank levy, when it actually happens can be pretty shocking. What now? It can be hard to get a bank levy released.  They will release a levy under the following conditions. When that occurs, they will issue a release of levy notice (form ...

Deduction #37. Amortization of bond

Generally when you buy a bond, you’re going to buy it at a premium or a discount. You’ll buy it at a discount if the interest on the bond is lower then market. You’ll buy at a premium if the interest on the bond is higher then market. (That’s assume all other things, including the ...

Deduction #36. Amortization

Certain capitalized expenses (now called assets) are subject to depreciation and amortization. An actual physical item that is tangible is depreciated. An intangible item such as loan points is amortized. While items that are depreciated are done over the year (with certain mid-year and quarterly conventions), items that are amortized are expensed by the month. ...

Deduction #33. Alternative motor vehicle credit

Unfortunately, the alternative fuels motor vehicle credit has pretty much run out, at least for now. Watch for new credits as they become available....

Deduction #32. Alternative Fuel Infrastructure Tax Credit

A tax credit is available for the cost of alternative fueling equipment placed into service after December 31, 2005. Qualified alternative fuels are natural gas, liquefied petroleum gas, hydrogen, electricity, E85, or diesel fuel blends containing a minimum of 20% biodiesel. The credit amount is up to 30% of the cost, not to exceed $30,000 ...

Deduction #32. Alterations, Provided They are not Capital Additions

If you alter your business property or equipment, you’ve probably got a deduction. If the business property alteration improves the property or extends the life, it is considered a capital addition. A capital addition is an asset, not an immediate expense. You need to then depreciation the life over 15 years (if a leasehold improvement), ...

IRS Letter 11 Final Notice Of Intent To Levy

You get a letter from the IRS. Breathe deep and first not what number letter it is. If it’s Letter 11: Final Notice of Intent to Levy then you’ll want to take some action quickly. That’s because you’ve already gotten a slew of letters and either took no action or the IRS refused to act ...

Deduction #31 Alterations to Business Property, if Minor

First of all, notice that we say ‘minor.’ Minor doesn’t necessarily mean cheap. The issue is whether the alteration or repair maintains the property or whether it improves the property or extends the life. In the first case, maintenance, you have a current deduction. In the second case, improving the property or extending the property ...