Articles of Interest

2019 Mileage Rates

2019 Mileage Rates

2019 Business & Other Mileage Rates For 2019, the Internal Revenue Service has issued its optional standard mileage rates. You can use these rates to calculate the deductible costs of operating an automobile. These rates apply for cars, vans, pickups and panel...

The Tax Reform Act Changes Home Mortgage Interest Deductions

The Tax Reform Act Changes Home Mortgage Interest Deductions

The recent tax reform contains two big changes to how much you can deduct in mortgage interest for tax years 2018 through 2025: During this seven-year period, you may not deduct any interest on prior or current home equity debt, with certain exceptions. Also during...

Tax Strategy: 20% Deduction for Select Businesses

Included in the "Tax Cuts and Jobs Act" that takes effect for years 2018-2025, is the Section 199A which is known as the 20% Deduction for Pass-Through Entity Owners and Investors in Real Estate. Be sure to talk to our CPA to take advantage and plan for this deduction...

Illinois Income Tax Update

As you have heard, the Illinois legislators passed an income tax hike earlier this month which is effective July 1, 2017.  What does this mean for you? Illinois income tax rates increased from 3.75 percent to 4.95 percent for individuals, trusts and estates....

2017 Mileage Rates

The Internal Revenue Service has issued its 2017 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes. Beginning Jan. 1, 2017, the standard mileage rates for the use of a...

Deducting Business Education Expenses

The rules for business education deductions are as follows: You must already work in the business the education relates.¹ You must have already met the minimum educational requirements for the work.² If your education meets the above requirements, the rules let you...

Expedited Nonresidential Qualified Leasehold Improvement Tax Deductions

First let’s explain what qualifies as a nonresidential leasehold improvement: A qualified leasehold improvement is any improvement made to the interior portion of a nonresidential building if¹: The improvement is made pursuant to a lease by the lessee, sub lessee or...

Failed Rental Property Purchase Tax Procedure

When your attempt to purchase rental property fails, two types of costs are considered Capital acquisition costs Start-up expenses Capital acquisition costs are those costs that you capitalize and add to basis.  Two examples of rental capital acquisition costs...

American Opportunity Credit for Education

The American Opportunity Credit is for education expenses of an eligible student who is a taxpayer, spouse or dependent(s). The maximum credit amount is $2,500 per eligible student. 100% of the first $2,000 of qualified education expenses 25% of the next $2,000 of...

Section 179 Depreciation Deduction

Starting in year 2015, the Section 179 deduction limit in now permanent at $500,000 with the investment limit at $2,000,000 and indexed for inflation.  If the total cost of Section 179 property exceeds the investment limit, the available Section 179 deduction is...

2016 Health Insurance for S Corporation Owners

Deducting health insurance is a 3 step process for the more than 2% S corporation employee-shareholder.   Send Susan, a Certified Public Accountant, an email to discuss this tax strategy. However, before discussing the 3 step process, the health insurance...

What is New for Desktop QuickBooks 2016

The following features are included with QuickBooks Pro and Premier 2016 and QuickBooks Enterprise Desktop 16.0 Bill Tracker  You can access it from either the menu bar, select Vendors, then Bill Tracker or from the Vendor Center or from the top or...

2016 Mileage Rates

Beginning Jan. 1, 2016, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) is: 54 cents per mile for business miles driven 19 cents per mile driven for medical or moving purposes 14 cents per mile driven in service of charitable...

Create Recurring Invoices

Create Recurring Invoices

When you have customers that you charge each month for the same services, QuickBooks Online has a "make recurring" feature.   Click on the Gear Icon at the upper right side then click Recurring Transactions under Lists.   The above screen will appear....

Charging for Reimbursable Expenses in QuickBooks Online

Charging for Reimbursable Expenses in QuickBooks Online

Perhaps you would like to be reimbursed by your customers for expenses incurred on their behalf.   With QuickBooks Online, these expenses, called Billable Expenses, can be tracked and invoiced to your customer for reimbursement. To activate the feature that allows you...

QuickBooks Online Tips

QuickBooks Online Tips

  The following are a few QuickBooks Online tips designed to save you time while working in your file: After logging into your QuickBooks Online company, right-click in either in your Chrome or Internet Explorer browser, then left-click Duplicate in Chrome or...

Maintain Your Business Mileage with Simple Apps and GPS Tools

For each business trip you take, you need the following: How far you drove; When you drove Where you drove; and the business purpose for the travel Check out the following apps and GPS Tools that track mileage automatically: MileIQ The Mileage Ace GPS Log Book One of...

2015 Mileage Rates

Beginning Jan. 1, 2015, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) is:  57.5 cents per mile for business miles driven 23 cents per mile driven for medical or moving purposes 14 cents per mile driven in service of charitable...

Is an Activity a Repair or an Improvement?

Improvements, which must be capitalized, fall into three categories.¹ Whether you own a business or a piece of real estate, you should understand this before you make the decision to spend that money. Betterment² – activity that contributes towards improving an...

Last Call for Landlords/Tenants in 2013

Do you own or rent commercial property? If so, you should seriously consider making “qualified leasehold improvements” in 2013.  This year, you can take a Section 179 deduction¹, if eligible, of up to $250,000, then 50% bonus depreciation² and finally, 15-year...

2013 Mileage Rates

Beginning on Jan. 1, 2013, the standard mileage rates for the use of your car (also vans, pickups or panel trucks) will be: 56.5 cents per mile for business miles driven. 24 cents per mile driven for medical or moving purposes. 14 cents per mile driven in service of...

Healthcare Reform Act Items Effective in 2013

In 2013, we will see the following become effective in the Healthcare Reform Act: A 2.3% excise tax on the initial sale of medical devices by the manufacturer, producer or importer.  This tax affects hospitals and other organizations purchasing supplies and...

What's New in QuickBooks 2013

On the Desktop version for all versions: If you are a current QuickBooks user, you will notice immediately when opening QuickBooks 2013 the visual design overhaul has a larger font size which is easier on the eyes than prior versions of QuickBooks.   When you...

What Qualifies as Regular Use for the Home-Office Deduction?

To deduct an office in the home, you must pass the regular-use test in addition to exclusive use. The IRS audit manual states:¹ Regular use means that you use the exclusive business area on a continuing basis.  The occasional or incidental business use of an area...

Deducting Vehicle Expenses

When claiming vehicle expenses, keep in mind one rule: No mileage log = No deduction. Whether you are claiming: Mileage at the IRS 2012 rate of 55.5 cents a mile, or Actual expenses which includes depreciation, interest, gas, vehicle licenses, oil, repairs, etc. A...

2012 Mileage Rates

Beginning on Jan. 1, 2012, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be: 55.5 cents per mile for business miles driven 23 cents per mile driven for medical or moving purposes 14 cents per mile driven in service of...

How to Protect Your S Corporation

In order to protect your S Corporation, you need the corporation to look, feel and act like a corporation, and you need a salary that will stand up to the IRS as a reasonable salary. For the corporation to stand up to scrutiny, you want the corporation as the entity...

Reporting S Corporation's HSA

When your S corporation contributes to your employees'  HSA accounts, the contributions become the employees' property.  Your employees use the money to pay their current or future medical expenses. The HSA contributions are tax-free fringe benefits to your...

Deducting Your Holiday Party

Are you having a Holiday Party? The party is 100% deductible for employees and their spouses. Thus, you will need to categorize the party to an account perhaps titled "100% deductible entertainment." To prove your deduction, you should document the names of the...