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
SK Accountancy Blog
Stay up on how tax and accounting news is affecting you and your business
3 Myths About Mortgage Deduction
It’s getting common for parents providing assistance to their children to buy home when the property price is soaring nowadays. There are three myths you need to be aware of. It is going to be pricy for these mistakes: Myths #1 … Read More
How to adopt de minimis safe harbor rule?
If you purchase an equipment or furniture and fixture for your business, you may expect to capitalize it as fixed assets which are subject to depreciate over 5 years in your books. This is a correct practice, but do you … Read More
S-Corp owner’s compensation
One of the popular tax planning strategies of S-corporation owner is to pay himself or herself as little as possible so as to save the payroll taxes (social security and Medicare). For example, if your business income before your salary … Read More
5 things you need to know about 1099
My clients have asked me a few common questions about 1099, I would like to share the answers with you so that you understand the rules more. 1. If I pay the contractors by credit card, do I need to … Read More
Start Up Cost
I have a friend who is a computer programmer. He is trying to quit his field and start a new business. He has identified the business opportunity in smog check. Before he quits his job and starts the business, he … Read More
Capital Loss and Worthless Stocks
Especially when you have capital gain this year, you want to evaluate if you should recognize certain capital losses. The capital loss generally can’t be deducted more than $3,000 against the ordinary income per year. The disallowed portion is carried … Read More
New Rule from California EDD
California employers with 10 or more employees are mandated to electronically submit tax returns, and payroll tax deposits to the Employment Development Department (EDD) beginning January 1, 2017. Effective January 1, 2018, all employers will be mandated. California employers who … Read More
Rental Loss
The rental loss is automatically defined as passive loss which may not be offset against your ordinary income (such asW-2 or business income) when your adjusted gross income is over $150,000. Even your income is not to the point phasing … Read More
2016 Last-Minute Tax Planning Reminder – Health Insurance
If you are running your business as S-corporation, one of the common mistakes is you have not included the premium in your W-2. The rule requires you have the S-corp pay for the medical premium, but then you need to … Read More