The distinction between a business activity and a hobby is not a black-and-white issue but instead comes in various shades of grey, which makes it a frequent topic in tax court. What is at stake? - At issue with the business or hobby determination is the treatment of the activity’s expenses. A for-profit business is able to deduct all of its business expenses even if the net … [Read more...] about Is It a Business or a Hobby?
Tax related
Don’t Overlook the Small Employer Health Insurance Credit
If you are an eligible small employer or a tax-exempt eligible small employer, you may qualify for the small employer health insurance premium credit. This credit is one of the first health care reform provision to take effect as a result of the Health Care Act that was enacted in 2010. The credit reduces a small employer’s tax liability and is claimed on the employer’s income … [Read more...] about Don’t Overlook the Small Employer Health Insurance Credit
Increased Tax Compliance Enforcement and the US Budget Deficit
Until recently, many of us seldom heard of Tax enforcement arrests and the failure of reporting obligations by well-known transnational companies and high net worth individual tax payers. Ever wondered why this has become a hot topic these days? Does this have anything to do with the economy, the recession, the US budget deficits or the humongous debt? Absolutely! Internal … [Read more...] about Increased Tax Compliance Enforcement and the US Budget Deficit
September 2011 Business Due Dates
September 1 - Fall 2011 and 2012 Tax Planning Contact this office to schedule a consultation appointment. September 15 - Corporations File a 2010 calendar year income tax return (Form 1120 or 1120-A) and pay any tax, interest, and penalties due. This due date applies only if you timely requested an automatic 6-month extension. September 15 - S Corporations File a 2010 … [Read more...] about September 2011 Business Due Dates
Due Date Reminders – Business – August’2011
August 1 - Certain Small Employers Deposit any undeposited tax if your tax liability is $2,500 or more for 2011 but less than $2,500 for the second quarter. August 1 - All Employers If you maintain an employee benefit plan, such as a pension, profit-sharing, or stock bonus plan, file Form 5500 or 5500-EZ for calendar year 2011. Normally, this form is … [Read more...] about Due Date Reminders – Business – August’2011