Latest Posts on USATaxAid's Blogs

Safely Taking the Home Office Deduction

If you have a home-based business, you most likely also have a home office deduction. But maybe you’ve heard that deducting a home office is a risky tax deduction. Or, maybe you’ve heard that you need to see clients or customers in your office to get the deduction or that you need a separate entrance or that you can’t have any other office to make it work. None of that is true.... Read More »

Want More Money in Your Pocket? Start a Home-Based Business

Do you think tax law isn’t fair? Guess what! It’s not. You’ve got three choices when it comes to the unfair tax laws:

1. You can do nothing. Accept your fate. Work hard. Keep less.
2. You can get mad and say it’s not fair. Complain to everyone you know. Hope someone else changes things.
3. You can do something different! Make more money AND pay less tax.

Are Taxes in the US Going to Change?

What’s going to happen next year with taxes and tax rate? When it comes to taxes, there is one thing you can be certain of – change. Here are three things you might not have expected to look out for in 2012:

• What states do you need to pay tax in? The hot new tax topic is “nexus.” Nexus means connection. If you have a connection with a state, the state may... Read More »

• 5 Stupid Things Home Business Owners Do That Cause an IRS Audit Red Flag

  December 8, 2011 | Posted in Diane's Blog, USATaxAid's Blogs
  

  In a few months there are going to be a lot of newspaper articles and blogs about IRS red flags. If you have a home-based business, there are some things that could get you in trouble before you even file your tax return. Here are 5 things you need to avoid right now, and strategies that will help keep you out of trouble. IRS Audit Red Flag #1: Failing to Comply with IRS Rules for Business Loss... Read More »

• 3 Strategies with Corporation Taxes

  December 6, 2011 | Posted in Diane's Blog, USATaxAid's Blogs

  When it comes to tax planning, C Corporations have some unique advantages. Every corporation starts its life as a C Corporation. It is possible to make an election (known as an S Corporation election) to be taxed as a flow-through corporation known as an S Corporation. A limited liability company (LLC) can elect to be taxed as a C Corporation or an S Corporation. Let’s assume that you’ve made or not made all the relevant... Read More »

• Why I Hate IRS Refunds

  December 1, 2011 | Posted in Diane's Blog, USATaxAid's Blogs | 2 Comments
  

  In a few months, there will be a lot of people wondering where their IRS refund is. Or they may not quite be there yet with their tax return preparation and instead are just happy they are getting a refund. I’m going to tell you something a little controversial right now. I don’t like IRS refunds. And I especially don’t like state tax refunds. In fact, I’m a little afraid of them in some states.... Read More »

• US Tax Strategies for 2011

  November 29, 2011 | Posted in Diane's Blog, USATaxAid's Blogs
  

  As the year comes to an end, it’s time to start thinking about US tax strategies for year-end. There is still some time to get things done, but remember your tax strategies need to be in place before the end of the year. You can’t plan in 2012 for 2011 taxes. Here are some of the things to do now:

  • Project your income for the 2011. If you don’t have a current financial statement... Read More »

  • IRS Ramps Up Potential Issues with Schedule E

    November 24, 2011 | Posted in Diane's Blog, USATaxAid's Blogs
    

    Earlier this month, the IRS sent out over 21,000 letters to tax preparers reminding them of the penalties for tax return fraud. The letters were right on the borderline of being threatening. Now we’re learning that the IRS is planning to follow up with visits to 10% of those tax preparers. And they’re going to do it during tax season. The interesting thing is that the IRS is not tackling some of the... Read More »

  • One More Reason to Avoid a Schedule C

    November 22, 2011 | Posted in Diane's Blog, USATaxAid's Blogs

    I’m not a fan of Schedule C (Sole Proprietorship) businesses for 3 big reasons:

    1. They will cost you more in tax.
    2. They put everything you own at risk.
    3. They are more subject to audit.
    And I know there are 2 reasons why people will probably always continue to use them:
    1. Schedule Cs are way easier then setting up a regular business structure.
    2. Schedules Cs cost you... Read More »

    3. Form 1099 Rules for 2011

       November 15, 2011 | Posted in Diane's Blog, USATaxAid's Blogs | 4 Comments
       

       Now is a great time to start collecting Social Security numbers and EIN (Employer Identification Numbers) for all of your non-employee workers. You will need to prepare a Form 1099-MISC for every person or non-corporate business structure that provided more than $600 of services for your business in 2011. You also need to report anyone that purchased more than $5,000 in products for resell. There are some exceptions to this rule, for... Read More »

    4. When Millionaires Talk…..

       November 10, 2011 | Posted in Diane's Blog, USATaxAid's Blogs | 2 Comments
       

       At the end of October 2011, I had the opportunity to be at a meeting with some very successful business owners. Multi-millionaire/billionaires were in attendance and I got to spend some time with them. Here’s a short 11 min video on what I learned they are doing now and where they see the opportunities are right now. ... Read More »

    5. Form 1099-A, Form 1099-C and IRS Audits of Real Estate Professionals

       November 8, 2011 | Posted in Diane's Blog, USATaxAid's Blogs | 1 Comment
       

       Most of the real estate-related headlines continue to be about the depressed market and foreclosures. In my world, the tax world, there are two tax trends that we’re watching closely. #1: Lenders continue to send out nonsensical Form 1099-As and Form 1099-Cs, or send none at all, or send them years after the foreclosure. And if you fail to report the information correctly, you get a penalty. Here’s the way it is... Read More »