How to claim home use office?

If you google home use office , you may find the form 8829. As long as you set aside a space in your home for business and use it regularly and exclusively , then you can deduct the home use … Read More

Business cell phone includes personal use?

You probably can’t run your business smoothly without the use of cell phone or tablets as mobile devices. It is clear that the monthly fees for the mobile devices is tax deductible if you use the phone exclusively for business … Read More

Tax free rental income

If you rent your house out, you are required to report the rental income in schedule E. Is there any exception? Yes! As long as you rent it out for less than 14 days in a year, you do not … Read More

Free Help To Resolve IRS Issue

As a taxpayer’s right, do you know you may be able to seek free assistance representing you to deal with IRS issue? Such free help certainly is not from CPA firm nor tax attorney. I am not going to introduce … Read More

Medical Expense – No Tax Benefit?!

You may know medical expense is tax deductible in schedule A (itemized deduction) of form 1040. However, you may overlook the fact you can’t deduct the medical expenses until such expenses exceed 10% of your adjusted gross income (AGI). That … Read More

Claiming Your Dependents

Who are your Dependents from tax filing perspectively? This could be confusing to a lot of taxpayers. Can the dependent have his or her own earned income? Do they have to live with you? Is there any age limit? These … Read More

S-Corporation Compensation

The top two benefits of forming a S-corporation over sole-proprietorship are as follows: Set aside your investment into a separate legal entity to limit your liability Saving employment taxes (it could be widely named as self-employment tax, social security, medicare, … Read More

Implementation of hiring your children

Do you pay your children allowance in exchange for work (business work, not household work!), if so, this tax saving technique is perfect with you. Say if you hire your kid for work and pay them $5,000 annually on payroll … Read More

Work Opportunity Tax Credit (WOTC)

If you are considering to hire, you may want to hire someone from a targeted group, defined under US Department of Labor, to get the credit up to 40% of the first $6,000 wages paid. The new hire from the … Read More

Should your business hold the title of vehicle?

If you have vehicle for business use (over 50%), you can choose to either put the title under your business or personal name. Both are acceptable from IRS, you need to determine based on a few different factors. The advantage … Read More