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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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 […]
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 […]
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 […]
How is the LLC operating income taxed? The tax side is way different… BAD. A single member LLC is a “disregarded” entity. Thus, the LLC would not do a separate tax return as would a corporation. The owner (now you know to say member) would account for the income exactly as a sole proprietor on a […]
As an Authorized ERO (Electronic Return Originator), we receive notification from the IRS on a Form 9325. IRS Publication 1345 is periodically updated but no changes have been made in over 4 years. The latest IRS Revenue Procedures (rev procs) refer to it: “The ERO must, at the request of the taxpayer, provide the Declaration […]
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HOME OFFICE DEDUCTION Do you have an area of the home you use exclusively for business? If so, the following information is needed: Square footage of area used exclusively for business Total square footage (excluding garage) Electric, gas (not water) Maid service if it includes the office Home insurance or Renters insurance Portion of DSL used for business If you […]
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Owners of LLC’s are called members. The person in charge is called the manager or managing member (if it is a multiple member LLC). […]
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How Long Do I Keep Records Our standard answers… 3 years is the Statute of Limitations for audit purposes (from the due date of the return or the filing, whichever is later). 4 years for Employee Records 6 years if there is a 25% understatement of income (accidental, misinterpretation of tax law, bookkeeping error, involved in one […]
