Archive for the ‘Tip Of The Day’ Category

CP 14 – Request For Tax Payment

If you get an IRS notice, your first impulse may be to panic. But before you panic, take a look at the number at the top of the letter. It will tell you what they really are after and what the next steps are likely to be. Today, we’re talking about the CP-14 letter. (Look ...

Deduction #60. Auto damages caused

There are a couple of ways that you may be able to take a deduction for auto damages. Please note that you can not take a deduction for loss that your insurance company compensates you for. In other words, if you’re in a wreck and it causes $5,000 worth of damage to your card, and ...

Deduction #59. Auditing of your books and accounts

The cost of having your business books and records audited is deductible. There are three levels of report that a CPA can do for your books and records: Compilation Review Audit A compilation means that the financial statements are reported in accordance with a basis of accounting. In other words, assets are reported as assets, ...

Deduction #58. Audio Tapes (blank)

When are audio tapes deductible for your business? When they are ordinary and necessary for the production of income! I have a number of businesses, all centered around financial, tax and accounting topics. As part of our ongoing education that we provide for our clients, I do a lot of audio and video workshops. We ...

Deduction #57. Audio Recording Equipment

In order to take a business deduction, you must first prove you have a business. Then, once you’ve proven you have a business, examine your expenses to determine what is a legitimate expense for your business. If you have a business that makes audio recordings, for resale, training and/or marketing, then you have audio recording ...

Deduction #56. Auction appraisal fees

If part of your business involves buying or selling at auction, then you’re going to run into auction fees and auction appraisal fees. They’re deductible if used for your business. Remember to be a legitimate deduction, you must first have a real business. You need to keep good records proving what it is you’re buying ...

Deduction #55. Attorney’s Fees

You can rack up legal fees for personal issues or for business issues. The personal attorney fees might be deductible under “miscellaneous deductions” on Schedule A-Itemized Deductions. Check with your CPA on that one. It will depend on what the legal fees were actually for. Legal fees for your business are deductible. One additional point ...

Deduction #54. Artwork

Artwork on the walls of your business office are deductible in most cases. Take a look at your home office, what do you have there that could be deductible. The one exception of which you need to be aware is a rule that if you buy something that is easily sold in its current condition, ...

Deduction #53. Artificial Teeth

We’re rounding up the last of the possible 1000+ Business Deductions that have to do with artificial body parts. Megan, my partner at USTaxAid Services, Cash Flow Accounting and Nexus Negotiator, suggest a new deduction possibility for artificial teeth. If you’re in a business that requires a stage presence, then the cost to keep up ...

Deduction #52. Artificial Limbs

Let’s turn today’s deduction possibility into a “How can this be deductible?” Artificial limbs could be deductible if used for: Medical purposes, Movie making, Crash dummy testing, An episode of “Mythbusters”, Or ??? Drop me a comment if you have any other ideas!...