Solar Tax Credit If you install a solar water heater or solar system for supplying your electricity, you can get 30% tax credit to the cost (the cost of the system plus the installation cost after any rebate from electric … Read More
Monthly Archives: October 2016
New tax due date for LLC and Corp in 2017
If you are a LLC owner, please be aware of the new due date of 2016 LLC tax return. It is effective in 2017 filing season. Instead of filing by Apr 15, 2017 with extension to Sep 15, 2017, IRS … Read More
2016 S-Corp owner’s health insurance, deductible?
Question: Can a S-Corp owner deduct his or her health insurance as business expense? Answer: Yes or No! The answer is YES if you do the following properly: 1. S-Corp pays for the health insurance either by group plan or … Read More
Write off the equipment cost of depreciating it?
When we perform bookkeeping and prepare tax returns, our clients often ask us if we should depreciate the equipment over 5 years or simply write off in the year the equipment is in use. The answer is it depends on … Read More
Repair or improvement?
If you are rental property owner, I think your favorite question to your CPA is how you should define repair and improvement? You know the rationale behind is to classify the expenditure to repair expenses as much as possible because … Read More
Tax benefit for non-cash donation
If you have any unused household items or clothes but they are in good used condition, please consider to donate them to a qualified charity. The tax benefit of non-cash donation is equivalent to cash donation! In general, you can deduct … Read More
Tax benefit of home use office for the owner of corporation
Mystery: Your CPA may inform you that there is no home use office form 8829 in corporation tax return. Accordingly, it is not possible to claim the home use office expenses. Answer: This is not true as long as your company … Read More
2016 tax benefit for business use vehicle
If you need a new vehicle for business use, you do not want to overlook the tax benefit. Consult your CPA to ensure you can enjoy the tax benefit. The good news is if you are buying a new or … Read More
Tax benefits in hiring your kids to work
I have a business client who has been paying allowances to his kids in exchange for their work during the summer time for years. The business client thought it would have been incurred more tax (payroll tax and income tax) … Read More
Unfiled tax returns? Back Taxes and penalties?
If you have not filed tax returns which are past due, you have to take action now to fix it. IRS might react slowly and the problem of those late filing seems not hurting you right now, but it could … Read More