by Karla Dennis | Jul 16, 2013 | Blog
Entrepreneurs, by their very nature, consider themselves a jack of all trades. Let’s face it, you have not gotten where you are today without being able to multitask. Not only have you assumed the role of receptionist and sales person, you have also been chief executive offer and chief financial officer. You are truly a do-it-yourselfer. You have only hired employees because you just do not have enough time to do everything anymore. For the most part, this has probably not been a bad thing. When it comes to your tax preparation, however, the IRS is singing a different tune. According to the IRS, 35% of the business returns filed by business owners contain avoidable mistakes. Because the IRS believes business owners are special, too, they have launched an audit program that specifically targets business owners. Juggling your business has just gotten harder because now you have one more concern to add to your plate. read...
by Karla Dennis | Jul 16, 2013 | Blog
The Small Business Jobs Act of 2010, signed by President Obama on Sept. 27, 2010, includes a bevy of tax breaks for small business owners. Here are the highlights of this important new legislation. Section 179: For tax years beginning in 2010 and 2011, your business can immediately write off up to $500,000 of qualifying assets (including purchased software). The new $500,000 maximum allowance doubles the previous $250,000 maximum deduction. More good news: the threshold for the Section 179 deduction phase-out rule jumps from $800,000 to $2 million for tax years beginning in 2010 and 2011. Also, for tax years beginning in 2010 and 2011, up to $250,000 of qualified real property costs can also be deducted under Section 179. Previously, real property costs did not qualify for Section 179 deductions. read...
by Karla Dennis | Jul 16, 2013 | Blog
Many of us have just enough time to juggle all the things that life throws at us on a daily basis, only to have to stop and organize our financial affairs to have our tax returns prepared. January through April seems to be the time everyone is hustling around trying to pull it all together. Squeezing out those last minute tax deductions can make the difference in paying a little or paying a lot in taxes. No one wants to be overtaxed but life sometimes gets in the way of the time available to be detailed and organized. Successful people aren’t typically successful by happenstance. It is because they have planned their lives down to each moment of time to make sure they fit in everything that needs to get done. Whether it is attending school, meeting with an important client, talking to the boss about a raise or simply carving out some me time, chances are it won’t get done if it is not scheduled. The old saying holds very true; if you want something done, give it to a busy person. Planning to have your taxes prepared and being able to squeeze out all the deductions possible is really simple if you follow these tips: read...
by Karla Dennis | Jul 16, 2013 | Blog
On February 1, 2011 the Senate approved an amendment to repeal the expanded 1099 information reporting requirements that were introduced with the passage of the health care reform law. The U.S. House of Representatives will vote as early as March to eliminate the tax-reporting requirement. As a business owner, my primary focus is on taking care of my customers and making sure I serve them. In this economy, business owners are already faced with extra burdens. We have to make sure we are servicing our clients 150%; we have to really think twice before increasing rent and watch our bottom line. This responsibility alone is a handful. Imagine having to deal with the new 1099 filing requirements in addition to the other items we need to track. The new law would have required me to track all my vendors that I have paid more than $600 to. I would then need to submit to both the vendor and the Internal Revenue Service form 1099. The headache gets much bigger as I would be required to hunt down vendors for their tax ID numbers. Additionally, I will have to give my tax ID numbers to my clients and tenants as well. This would not only force me to receive hundreds of 1099 forms but to also be concerned with identity theft. Sounds pretty ridiculous! read...
by Karla Dennis | Jul 16, 2013 | Blog
June 15, 2011, is the due date for making your second installment of 2011 individual estimated tax! June 15 is also the due date for calendar-year corporations to make their second quarter 2011 estimated tax payment. As a business owner, investor, or wage earner it is very wise and, in most instances, a requirement for you to pay estimated taxes or to make sure you are not under withheld on your income tax payments. Cohesive Tax is here to provide you with that service. If you received estimated tax vouchers with your 2010 income tax return, you are paying based on last year’s income and expense. It is advisable to pay based on current year income and expense so you can be assured you are paying the correct amount in estimated taxes or having the correct amount withheld from your paycheck. You do not want to over pay or underpay your income taxes. read...
