-
Bad Debt Expense
If you are on CASH BASIS, and you never rec’d payment, you have no write off because you only declare it when you receive it.. never received it, never declared it, no write off. If you are on ACCRUAL BASIS, then you declared the revenue when the invoice was generated. NOW, you can write off…
-
First Time Homebuyer Credit (as of 02.16.09)
First Time Homebuyer Credit We understand there are many questions about this new refundable tax credit. How Much is the Credit? AS CURRENTLY WRITTEN (this is the tax law today.. at least it was this morning 02.16.09!) the credit amount is the lesser of $7,500 or 10% of the purchase price of a principal residence…
-
Health Insurance for Greater than 2% Shareholder of Sub S
Per IRS Notice 2008-1, Special Rules for Health Insurance Costs of 2-Percent Shareholder-Employees, health insurance must be included in the shareholder employee’s 2008 Form W-2 in order to take the self-employed health insurance deduction for shareholder employees owning greater than two percent of the S Corporation. The requirement existed in prior years but there was…
-
Sales Tax Deduction
There is a sales tax deduction for sales tax paid on major items such as cars, trucks, airplanes, (this includes leasing of the vehicle) motor homes, mobile or pre-fab homes… and improvements to your home (think bricks and mortar, not cosmetics, not large TV’s, not fans, not appliances).. best examples are tile floor, wood floor,…
-
Mileage Deduction – what about driving to the office?
Driving from home to your first place of business (notice I did not say office) is not deductible. From home if you visit a client first, no deduction (first place of business) but to the next place of business (office or another client) is deductible. From your last place of business home (again, notice I…