Now that the NBA fiasco is settled, can you deduct the cost of tickets? The answer is YES either as (1) business entertainment or (2) a business gift. If you attend the game with the business client, the cost of the tickets can be deducted only as business entertainment. To qualify, the entertainment must be “directly related to” […]
Category: International Taxation
IRS 2009 Statistics
IRS statistics now available for 2009 tax returns. The highest earning 1% of all U.S. individual taxpayers paid 36.7% of all federal income taxes. The highest earning 5% paid 58.7%. The bottom 50% paid only 2.25% of total federal income tax. […]
Depreciation History (recent) – is it complicated?
The Job Creation and Worker Assistance Act of 2002 (JCWA) provided an additional depreciation deduction in the placed-in-service year that is equal to 30% of the adjusted basis of the qualified property placed in service after 9/10/01. This law is reflected (for the most part) in IRS Code section 168(k). The Jobs and Growth Tax Relief Reconciliation Act […]
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W2 Healthcare Reporting 2011 & 2012
The Patient Protection and Affordable Care Act requires employer provided health care costs to be reported on Form W-2 starting with the 2012 tax year. This will affect employers who filed 250 or more W-2s for the 2011 tax year. […]
What is an Enrolled Agent (EA)?
Background: “Enrolled” means EAs are licensed by the federal government, while “Agent” allows appearance in place of the taxpayer before the Internal Revenue Service (IRS). Only EAs, attorneys and CPAs may represent taxpayers before the IRS. The EA profession started in 1884 when, after questionable claims had been presented for Civil War losses, Congress acted to regulate […]
What is Income?
IRC § 61 states all income from whatever source derived is taxable, unless specifically excluded by another Code section. IRC stands for Internal Revenue Code. If you ever tried to read it, you’ll know why they call it code! § is the symbol for Code section. […]
STATES with NO INDIVIDUAL INCOME TAX
Alaska Florida Nevada South Dakota Texas Washington Wyoming Tennessee and New Hampshire tax only dividend & interest income. […]
2011 Mileage Rates
Purpose Rates 1/1 through 6/30/11 Rates 7/1 through 12/31/11 Business 51 55.5 Medical/Moving 19 23.5 Charitable 14 14 […]
State of Florida Annual Filing Fee
EFFECTIVE IMMEDIATELY! The Division of Corporations no longer has authority to waive the $400 late fee for annual reports filed after May 1st. The provision for waiver in s. 607.193(2)(b),F.S. was repealed during the 2010 Legislative Session. All business entities except non-profit corporations must pay the late fee if the annual report is filed after May […]
Proof in an Audit
How do you prove a deduction? First, a cancelled check, credit card charge or cash receipt. BUT, that only proves you paid for something. Second, an invoice showing what was paid. For example, you have a cancelled check to an insurance company. It only proves you paid for something. You might have paid your Grandmothers […]