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Tax Preparation Topic – Trump Tax Plan Implications

Posted on November 29th, 2016

November was a historic month to say the least. Tension is continuing to increase between Trump supporters and those opposing Trump post-election. The minute Trump won, half of America was planning to move out of country. Some still are. Hardly anyone expected Trump to actually win. Probably not even Trump. But regardless of the shock and the chaos that came with it, Trump won. He is now our president. This means he will now be proposing laws that will affect our lives and we should only hope for his success.

One of the areas that have been a priority for Trump is the complicated tax code. We have all complained about how hard it is to understand the tax code and how much we end up paying in taxes at the end of each year. (more…)

Tax Preparation Topic – ObamaCare

Posted on October 26th, 2016

The purpose of ObamaCare is to provide more affordable and equal health insurance for all Americans by achieving goals such as:
• Making health Insurance cost lower for seniors
• Preventing unhealthy individuals from being denied health insurance
• Encouraging employers to provide healthcare plans for their employees
• Providing assistance to those that cannot afford health insurance on their own

For a better understanding of how ObamaCare works (more…)

Bad Debt Expense

Posted on September 23rd, 2016

The IRS requires companies with the average revenue of $1 million in the past three years to use the accrual method of accounting in order to prepare their financials to file income tax returns. The accrual method requires you to report income in the year that it was earned and expenses in the year it incurred.

So for example, if you perform a service for a customer, such as painting a room or presenting someone in court, in December 16, 2015, but do not receive payment for your services until February 2, 2016, you must report the income for this service in your 2015 tax return, because the income was earned in 2015.

The opposite can also apply if you receive an advance payment. For example if you are booked for aperformance in March of 2016, you may require your customer to pay a partial payment at the time of booking, which may have been in November of 2015. Since you have not yet earned this income, you must report it when you file your 2016 return. (more…)

Section 179 Deduction Bonus for Businesses

Posted on September 2nd, 2016

If you own a small or medium sized business, the IRS wants you to invest in your company by providing you with the opportunity to deduct the full purchase price of equipment or software you have purchased, up to $500,000.00.

In the past, you may have heard your tax-preparer friends refer to the Section 179 Deduction as the “Hummer Deduction” or the “SUV Tax Loophole,” because it brought business owners, who purchased such vehicles, much joy with the deduction allowances it provided. But the function of the Section 179 has shifted away from that specific benefit in the past few years and geared more toward equipment, vehicles, and software that are useful for everyday operations of all types businesses.

Because this deduction is specifically meant for smaller businesses, if the total amount of the equipment purchased by the business is over the limit of $2,000,000.00, the deduction will begin to phase out dollar-for-dollar for any amount over the limit. (more…)

Home Office Deduction

Posted on August 18th, 2016

Your tax preparer is trained to prepare your taxes in your best interest. This means that he/she will look for any and every deduction and credits you may qualify for under the IRS tax code. If you are self-employed and you work from home, your tax preparer will inform you that you may be eligible to deduct your home office space in your tax return. Your tax preparer will probably also remind you that you are only eligible to deduct the space if it is exclusively and regularly used for business. (more…)

Amending Individual Tax Returns with the IRS

Posted on July 27th, 2016

There are many details that go into your return, so it is not uncommon to miss something in the process of filing a return. It is also possible that after you have filed your return, your employer or contractor will send you a correction on the total income you earned throughout the year. (more…)

Payroll Topic – San Diego Minimum Wage Rises to $10.50

Posted on July 13th, 2016

Beginning July 11th 2016 minimum wage in San Diego has been raised to $10.50 per hour. City Councilman Todd Gloria stated that the new minimum wages is “a huge victory for San Diego’s working families.” Gloria further explained “Implementation of the wage increase is a huge victory for San Diego’s working families and will provide much-needed relief for San Diegans who work full-time but still find trouble making ends meet amid rising costs for housing, utilities and groceries.” (more…)

Tax Planning Topic – Marriage Tax Advantages

Posted on July 1st, 2016

It’s wedding season! You have worked hard for so long to make your big day perfect. Your wedding day is worth every penny you spend, but it’s still nice to keep money in your pocket where you can, so let’s talk about the tax advantages you get from the IRS as a wedding gift when you file your tax return next year. (more…)

Payroll Topic – California Overtime Law

Posted on June 27th, 2016

Have you ever worked from 8am to 5pm and ended up being confused about why you did not receive an hour of overtime on your paycheck? Many employees are often confused about what constitutes 8 hours of work on payroll and when they are entitled to overtime pay. (more…)