If you file or pay late… and you have been compliant for the last three years (that means you filed and paid on time), there is a little known program called FTA for First-Time Abate program. You must REQUEST this relief since the program is NOT mentioned in the tax return instructions NOR on the balance due notices! There […]
Category: Sub S Corporations
2012 SUV Depreciation
If in 2012 you purchase and put into use a$60,000 SUV with a gross vehicle weight greater than 6,000 pounds, you can expense $25,000. Then, half of thre remaining $35,000 cost ($17,500) qualifies for 50% bonus depreciation. Finally, you can deduct 20% of the $17,500 balance. Thus, the first year write off is $46,000. All […]
Meals & Entertainment Deduction
IRS says…. Entertainment includes the cost of a meal you provide to a customer or client, whether the meal is a part of other entertainment or by itself. A meal expense includes the cost of food, beverages, taxes, and tips for the meal. You may be able to deduct business-related entertainment expenses you have for […]
Completed-Contract Method of Accounting
The completed-contract method of accounting is used by contractors and manufacturers. Unlike the percentage-of-completion method which recognizes revenues and gross profit in the applicable periods of the construction or manufacturing process, and not only in the period when the construction has been completed, under the completed-contract method of accounting, revenue, expenses, and gross profit is deferred […]
Sales Tax Collection Allowance in Florida eff. July 1, 2012
New law requires sales and use tax dealers to file and pay tax electronically to receive a collection allowance For sales and use tax returns and payments due on or after July 1, 2012, dealers may deduct a collection allowance only when they: File sales and use tax returns electronically; Pay tax electronically; and Electronically […]
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Income Tax – the first law
July 1, 1862 First Income Tax bill President Abraham Lincoln signed the first income tax bill, levying a 3% income tax on annual incomes of $600-$10,000 and a 5% tax on incomes over $10,000. Also on this day, the Bureau of Internal Revenue was established by an Act of Congress. […]
1099s – Should I do them?
Some companies prepare 1099’s for everyone eventhough it may not be required. If you paid any individual $600 or more for personal services, then a 1099 is required (that includes paying an unincorporated landlord). When we say individuals, that may be confusing. Clearly if you wrote the check to JONES, INC, that is a corporation but I’d get […]
Sale of Business BUT What did you Sell?
You don’t buy or sell a business. You buy or sell either Ownership position in a corporation is evidenced by Stock. It is like selling stock in a publically traded corporation. The business is not selling assets. The ownership of the business changed but not the assets nor the liabilities. The new owners just operate the business […]
Florida State Unemployment Tax Rates 2012
Florida Contribution RatesFor 2012, the minimum rate is 2.02% and the maximum rate is 5.4%, except that employers participating in the short-time compensation program will be subject to a maximum rate of 6.4%. New employers pay 2.7% in 2012. The noncharge ratio is .0057, the excess payment ratio is .0089, the gross benefit ratio is […]
IRS Names… guess who to IRPAC!
Wednesday, January 26, 2011 IRS Names 10 New Members to IRPAC The Internal Revenue Service today announced the selection of 10 new members in 2011 for the Information Reporting Program Advisory Committee (IRPAC). “Members of IRPAC provide industry perspective and recommendations that assist the IRS in making decisions about third-party information reporting, which is important […]