Advisory Services – How to Find a Good Tax Preparer If you pay someone to prepare your tax return, the IRS urges you to choose that preparer wisely. Taxpayers are legally responsible for what’s on their tax return even if it is prepared by someone else. So, it is important to choose carefully when hiring an individual or firm to prepare your return. Most return preparers are professional, honest and provide excellent service to their clients. The IRS wants to remind all taxpayers that they should use only preparers who sign the returns they prepare and enter their Preparer Tax Identification Numbers (PTINs).

Types of Taxes – Alternative Minimum Tax #106 The alternative minimum tax attempts to guarantee that all individuals pay at least a minimum amount of tax. Tax laws give favored treatment to certain kinds of income and allow special deductions and credits for certain kinds of expenses. The alternative minimum tax attempts to guarantee that individuals who benefit from these tax advantages pay at least a minimum amount of tax. The alternative minimum tax for individuals is a separate system of income taxation that operates parallel to the regular income tax.

Types of Taxes - Capital Gains and Losses #102 Just about everything you own and use for personal or investment purposes is a capital asset. Examples are household furnishings, your home and stocks or bonds you personally own. You have a capital gain or a capital loss whenever you sell a capital asset. The difference between the amount you sell it for and your cost or basis determines whether you have a capital gain or a capital loss.

Expenses – Travel #102 Most expenses associated with normal business travel are tax deductible. These include costs associated with transportation, baggage and shipping, operating a vehicle, meals (subject to limitations) and lodging, dry cleaning, telephone calls, and tips.

Expenses – Charitable Contributions #112 Contributions made to charitable organizations technically do not qualify as a business expense eligible for a federal tax deduction. Nevertheless, the IRS does allow most corporations – with the notable exception of S corporations – to deduct charitable contributions on their corporate income tax returns, subject to some limitations.

Business Types – Reporting Cash Receipts Exceeding $10,000 The law requires that trades and businesses report cash payments of more than $10,000 to the federal government by filing IRS/FinCEN Form 8300, Report of Cash Payments Over $10,000 Received in a Trade or Business.

Benefit Plans – Affordable Care Act #103 The Affordable Care Act was enacted on March 23, 2010. The law has some tax provisions that take effect in 2011 and others that will kick in over the next few years. The following is a list and summary of provisions currently in effect for small businesses. Additional information will be added to this brief as it becomes available.

Depreciation Methods, #103 The depreciation method that you use for any particular asset is determined at the time you first place that asset into service. Whatever rules or tables are in effect must be followed as long as you own the property. Since Congress has changed the depreciation rules many times over the years, you may have to use a number of different depreciation methods if you have business property that was acquired at different times. …

Benefit Plans - Health Savings Accounts, #101 To help small business owners and their employees cope with the escalating cost of health care, the federal government established Health Savings Accounts in 2003. These accounts – which combine tax-free savings with high-deductible insurance coverage – are designed to receive tax-exempt contributions, are portable from job to job, and may be accumulated over the years or distributed on a tax-free basis to fund qualified medical expenses. Other approaches include Medical Savings Accounts, Health Flexible…