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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,…
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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…
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Cash Basis vs. Accrual
In the Simpliest Terms…….CASH BASIS REVENUE means you declare it when you RECEIVE the money.ACCRUAL BASIS REVENUE means you declare it when you EARN the money (usually that is when the invoice is generated whether you receive a portion of the money or none at all at the time the invoice is generated). When you…
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LLC’s – What is an LLC?
Limited Liability Companies started in the United States in Wyoming in 1977. Similar entities existed in Germany in the late 1890’s. The Wyoming farmers wanted the advantages of corporations (specifically, limited personal liability) with the advantages of being unincorporated (no organizational meetings, By-Laws, accounting requirements). Since then, all 50 states have adopted various forms of…
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LLC Income is Reported How?
How is the LLC income reported? The IRS considers the single member LLC to be a “disregarded” entity. That means, it is reported for tax purposes exactly the same as a sole proprietor with no additional reporting requirements. That’s still a part of the GOOD, ease of reporting income. A multiple member LLC comes under the…