Tax law requires businesses to provide information returns, such a 1099s, to each payee that the business has paid $600 or more for the year. The law also includes penalties for failure to file the same information returns with the IRS. To ensure compliance with these requirements, there are substantial penalties, and, as part of the recently passed Small Business Jobs Act of … [Read more...] about New Penalties for Failure to File or Furnish 1099 Information Returns
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Is Your Business Ready for 2011 Credit Card Income Reporting?
Beginning for sales made in 2011, payment settlement entities (e.g., merchant card processing companies like American Express, Visa and MasterCard merchant banks) will be required to report each business’s payment transactions to the IRS. To facilitate this reporting, the IRS has developed Form 1099-K which will report a merchant’s credit and debit card income for the year … [Read more...] about Is Your Business Ready for 2011 Credit Card Income Reporting?
Home Office Deduction
If you use a portion of your home for business purposes, you may be able to take a home office deduction whether you are self-employed or an employee. Expenses that can be deducted for the business use of a home may include the business portion of real estate taxes, mortgage interest, rent, utilities, insurance, depreciation, painting and repairs. This deduction can be … [Read more...] about Home Office Deduction
New Breaks for Small Businesses
The 2010 Small Business Jobs Act enacted September 27, 2010 includes an assortment of incentives and tax breaks for small businesses. The following is a brief overview of some of the key provisions included in the new law. Watch for additional details in future newsletters. Cell Phones No Longer Listed Property - This means that cell phones can be deducted or depreciated … [Read more...] about New Breaks for Small Businesses
What is a Charitable Organization?
Money or property that you donate to “qualified” charitable organizations can be included in your itemized deductions as a charitable contribution. But what is a “qualified” charity? Churches, synagogues, temples, mosques and other religious organizations Federal, state and local governments (if your contribution is solely for public purposes) - generally includes local … [Read more...] about What is a Charitable Organization?