Every taxpayer’s worse nightmare. On the other hand, it is the price we pay for having a kind of “honor” or “voluntary” or system. I don’t mean at all to suggest that the government has no right to collect taxes or that you are not (generally) obligated to file — (I am not a Minuteman). But there are certain Western countries where the government essentially computes your taxes “for you” — it’s not up to you/your accountant to decide which deductions to take or whether a certain position is “risky”. Read more
Archive for PERSONAL INCOME TAXES
Help! They are Going to Audit Me!
Buddhist Mensch CPA speaks. (Finally!)
In which I finally answer these pertinent questions:
- What does my Rabbi think? (Do I have a Rabbi?)
- Is this just a clever marketing ploy? ( I hope so)
- Just what the nirvana do you do as a CPA, Mr. Streitfeld?
- What kind of ties do I like to wear?
- Speaking of having many ties, I seriously expound — for 10 seconds — on what “networking for others” means. This is actually important to me and I consider it a signature business practice that I have developed and love– it works personally, professionally and for everyone’s benefit. Is fun.
[youtube=http://www.youtube.com/watch?v=ItFOkAFrQqU&w=640&h=390]
Category: PERSONAL INCOME TAXES |
Credit Scores, Home Offices, Family Lending and Comic Torah?
By Hal Mayforth for Wall Street Journal
A troika! No — A smorgasbord! I am attaching three (count em) three articles for your pleasure in between shopping and finishing your kids’ homework. Did you know that unpaid library fines can affect your score?! Is it true that closing a cc account can help your score?
Check out this illuminating article from Quizzlewire here:
Trying to decide whether to work from home or rent an office? Sometimes there is no choice but if there is, read this little article. One helpful tip — if you are working from home but need occasional meeting space there are more and more facilities around town that let you rent meeting space by the hour and day. Read more
“But Officer……” The Hazards of Late Tax Filing
Grrrrrrrr.......
Call it the miracle of compound interest. Or the government’s interest in collecting taxes. However you cut it, your household or business can easily rack up hundreds or thousands of dollars in late fees even if you are just a few months tardy. Here is the least you should know:
- Interest and penalties are assessed at both the federal and state level.
- For personal taxes if you do not owe then there is no assessment.
- Have a couple of partners in your business? Just a couple months late could run you close to $1,000 even if it is a LLC or type of corporation that pays no tax directly. Diss it for a year or more and it’s a nightmare.
Then there is the funny (not really) issue of what constitutes “late”. If you owe taxes and you filed an “extension” you are still going to get hit — and hit hard if you owe a lot. As it says in scripture — “it is an extension to file, not to pay”. That’s why professionals tell their clients to estimate and pay their liability by April 15 even if their information is not yet organized for filing.
The good news? Okay I won’t call it good — but penalties can be appealed (interest is statutory) and my experience is that usually the people on the other end are reasonable. But the process takes time — the time on the phone, the time to resolve it, and money — especially on personal returns you are generally expected to “pay now, appeal later”. And if you have to hire a professional….well, you get the picture.
Category: GROWING A SMALL BUSINESS, PERSONAL INCOME TAXES |
Tags: estimate, extension, late fees, late tax filing, LLC, partner, penalties, Tax
Breast Pumps, Acne Cream and an Easier Way to Save Taxes on Medical Expenses
Are breast pumps tax-deductible? Acne cream? Again, the answers may surprise you. (Click here to read the fascinating article). But no matter what you can deduct as medical expenses on your tax return, there is a way you AND your employer can save significant payroll taxes: set up a “Section 125 Cafeteria Plan” for employee contributions to health insurance. It’s a win-win, and helps offset those ever-increasing premiums. Do not assume your employer knows!
While you are at it ask your employer about “flexible spending accounts” for out-of-pocket medical costs. It is another win-win and allows you to deduct some eligible medical expenses much more easily than you could on your tax return.
These plans often require a third-party administrator but there are providers that offer these services at a little or no charge. Write to me privately for details.
As always, click on the title of the post to comment or rate.
The Medical Deductions Quiz: Breast Implants? Sex Therapy? Wigs? Music Lessons?
Test your TaxMed IQ
How well are YOU taking care of your (tax) body? Tell me whether these are Y-Deductible; N-Not Deductible; USC –Under Specific Circumstances
Answers in the Comment section below
- The one you ALL ask me about – Cost of hotel room for sex therapy?
- Navajo healing ceremonies (a/k/a “sings”)
- Jewish healing ceremonies (a/k/a “zings”)
- Clarinet lessons
- Flute lessons
- Wigs
- Teeth whitening to reverse age-related discoloration
- Marijuana, prescribed by a physician in a state where it is legal.
- Air Conditioner
- Prospective kidney donor expenses
- Breast implants
- Liposuction
Which are true deductions?! Read more
Does a Tattoo Count as a Tax Deduction? (and other true fictions)
Deduct lipstick? My business requires that I look my best....
Well, does it? In some circumstances, maybe? Does it depend on the CPA? Does it depend, um, on where the tattoo is? Taxpayers can be very inventive in their attempt to claim business and personal deductions. Some of the best are in this annual article on the wackiest tax deductions. (You can glean also what reasonable deductions might look like). Click here to read on: (True Tattoo story is under “Full Disclosure” on page 2)
Please feel free to comment share or rate: Click title at top of page……
Let me See– LLC? Of Course — S Corp? Hmmm…..
EVERY start-up — and many existing businesses — wrestles with what sort of “entity” to be. There are a host of factors — cost, liability, tax benefits, complexity. No one article can cover all the mutations and individual variables, and one should always consult a professional (yes, I do a fair amount of consulting on this issue).
You may read the full article here, and as always I encourage you to comment or rate it. Thanks.
Category: GROWING A SMALL BUSINESS, PERSONAL INCOME TAXES |
How to Play the Tax Wars – WSJ.com
Help me understand!
There is unprecedented uncertainty regarding income taxes at this moment. Will rates rise next year? Only for some? Whither is the fesity estate tax headed? Should I take my bonus this year instead of next? Here is a handy summary of the issues and suggested solutions:
Category: PERSONAL INCOME TAXES |
