The Internal Revenue Service recently reminded people with home-based businesses that this year for the first time they can choose a new simplified option for claiming the deduction for business use of a home.
In tax year 2011, the most recent year for which figures are available, some 3.3 million taxpayers claimed deductions for business use of a home (commonly referred to as the home office deduction) totaling nearly $10 billion.
The new optional deduction, capped at $1,500 per year based on $5 a square foot for up to 300 square feet, will reduce the paperwork and recordkeeping burden on small businesses by an estimated 1.6 million hours annually.
Read more
For more information, contact Elite Bookkeeping & Tax Services at (800) 416-3820 or (775) 884-6188 Address: 123 West Nye Lane, Suite 103, Carson City, NV 89706. Visit our website at www.elitebookkeeping.biz
Wednesday, March 12, 2014
Wednesday, December 11, 2013
Year End Tax Tips from the IRS
For more information, contact Elite Bookkeeping & Tax Services at (800) 416-3820 or (775) 884-6188 Address: 123 West Nye Lane, Suite 103, Carson City, NV 89706. Visit our website at www.elitebookkeeping.biz
Wednesday, November 20, 2013
Tax Checklist
This is to assist you in gathering your income tax information. Use it as a guide for information you need to provide.
GENERAL INFORMATION:
□ First, middle initial, and last names of taxpayers and dependents as written on the Social Security cards, and dates of birth for taxpayers and all dependents, especially new dependents.
□ Address (city, state, zip), telephone number, and e-mail address.
□ Marital Status: Single ___ Married ___ Head of Household ___ Separated ___
□ Number of Dependents: ___ Did any dependents have any income? Yes ___ No ___
□ Do all dependents live with you? Yes ___ No ___
TYPES OF INCOME AND TAX REPORTING FORMS:
□ Wages: All W-2's □ Income from Rentals: All 1099-MISC
□ Pensions/Retirements: 1099-R □ Business Income: All 1099-MISC & 1099-K
□ Social Security: SSA-1099 □ Farm Income
□ Bank Interest: 1099-INT □ Alimony Received: Total amount
□ Dividends: 1099-DIV □ Unemployment: 1099-G
□ Commissions: 1099-MISC □ State Tax Refund: 1099-G
□ Tips and Gratuities □ Miscellaneous: Jury Duty, Gambling, Other
□ Sales of Stock, Mutual Funds: 1099-B
BUSINESS INCOME & EXPENSE ITEMS:
This list is not all encompassing. If you don’t see an expense listed below, ask.
Total (Gross) Income Advertising Auto: Parking &Tolls
Business Phone Expense Cell Phone Expense Subcontractors
Commissions Paid Insurance Interest Paid
General Office Expense Rent/Lease Fees Paid Legal or Professional Fees
Repairs Cleaning/Maintenance Dues & Publications
Equipment/Supplies Tools License Fees/Taxes Paid
Utilities Education Expense Association Dues
Bank/Credit Card Fees Postage Meals/Entertainment
Business Miles & Total Miles Asset Purchases Hotel/Travel Expense
ADDITIONAL ITEMS FOR RENTAL PROPERTIES:
Keys Condo/PUD Fees Management Fees
Mortgage Statements Yard Work Termite Treatment Expense
Utilities Mileage/Travel Other
DEDUCTIONS/CREDITS TO INCOME:
Self-employed Health Insurance IRAs /Keogh/SEPs Retirement Saver’s Credit
Medical Savings Account Teacher Expenses Adoption Expenses
Penalty on Early Withdrawal of Savings Moving Expenses
American Opportunity/Lifetime Learning/Student Loan Interest/Education Expenses
* Total Alimony Paid: Must have name and Social Security number of recipient, and amount paid.
* Child Care/Day Care Credit: Must have name, address, Social Security number or EIN of provider, and amount paid per child.
ESTIMATED TAXES PAID:
Date of payment and amount paid for each Federal and State quarterly tax estimate.
ITEMIZED DEDUCTIONS:
MEDICAL
Medical & Dental bills Prescriptions Glasses/Contact Lenses
Out-of-pocket expenses Medical miles Lab fees
Hearing Aids Medical/dental/long term care insurance
TAXES
Prior year state tax paid City/local tax Sales tax
Real estate tax Personal property tax Other
CHARITABLE CONTRIBUTIONS
Church Boy/Girl Scouts United Way/CFC
March of Dimes American Heart Easter Seals
Red Cross MDA/MS YWCA/YMCA
Salvation Army FoodBank Payroll deductions
Out-of-pocket Volunteer Expenses Charitable miles Other
Date of donation, list and Fair Market Value for each donation of household goods and clothing items donated to a Charitable Organizations.
For more information, contact Elite Bookkeeping & Tax Services at (800) 416-3820 or (775) 884-6188 Address: 123 West Nye Lane, Suite 103, Carson City, NV 89706. Visit our website at www.elitebookkeeping.biz
GENERAL INFORMATION:
□ First, middle initial, and last names of taxpayers and dependents as written on the Social Security cards, and dates of birth for taxpayers and all dependents, especially new dependents.
□ Address (city, state, zip), telephone number, and e-mail address.
□ Marital Status: Single ___ Married ___ Head of Household ___ Separated ___
□ Number of Dependents: ___ Did any dependents have any income? Yes ___ No ___
□ Do all dependents live with you? Yes ___ No ___
TYPES OF INCOME AND TAX REPORTING FORMS:
□ Wages: All W-2's □ Income from Rentals: All 1099-MISC
□ Pensions/Retirements: 1099-R □ Business Income: All 1099-MISC & 1099-K
□ Social Security: SSA-1099 □ Farm Income
□ Bank Interest: 1099-INT □ Alimony Received: Total amount
□ Dividends: 1099-DIV □ Unemployment: 1099-G
□ Commissions: 1099-MISC □ State Tax Refund: 1099-G
□ Tips and Gratuities □ Miscellaneous: Jury Duty, Gambling, Other
□ Sales of Stock, Mutual Funds: 1099-B
BUSINESS INCOME & EXPENSE ITEMS:
This list is not all encompassing. If you don’t see an expense listed below, ask.
Total (Gross) Income Advertising Auto: Parking &Tolls
Business Phone Expense Cell Phone Expense Subcontractors
Commissions Paid Insurance Interest Paid
General Office Expense Rent/Lease Fees Paid Legal or Professional Fees
Repairs Cleaning/Maintenance Dues & Publications
Equipment/Supplies Tools License Fees/Taxes Paid
Utilities Education Expense Association Dues
Bank/Credit Card Fees Postage Meals/Entertainment
Business Miles & Total Miles Asset Purchases Hotel/Travel Expense
ADDITIONAL ITEMS FOR RENTAL PROPERTIES:
Keys Condo/PUD Fees Management Fees
Mortgage Statements Yard Work Termite Treatment Expense
Utilities Mileage/Travel Other
DEDUCTIONS/CREDITS TO INCOME:
Self-employed Health Insurance IRAs /Keogh/SEPs Retirement Saver’s Credit
Medical Savings Account Teacher Expenses Adoption Expenses
Penalty on Early Withdrawal of Savings Moving Expenses
American Opportunity/Lifetime Learning/Student Loan Interest/Education Expenses
* Total Alimony Paid: Must have name and Social Security number of recipient, and amount paid.
* Child Care/Day Care Credit: Must have name, address, Social Security number or EIN of provider, and amount paid per child.
ESTIMATED TAXES PAID:
Date of payment and amount paid for each Federal and State quarterly tax estimate.
ITEMIZED DEDUCTIONS:
MEDICAL
Medical & Dental bills Prescriptions Glasses/Contact Lenses
Out-of-pocket expenses Medical miles Lab fees
Hearing Aids Medical/dental/long term care insurance
TAXES
Prior year state tax paid City/local tax Sales tax
Real estate tax Personal property tax Other
CHARITABLE CONTRIBUTIONS
Church Boy/Girl Scouts United Way/CFC
March of Dimes American Heart Easter Seals
Red Cross MDA/MS YWCA/YMCA
Salvation Army FoodBank Payroll deductions
Out-of-pocket Volunteer Expenses Charitable miles Other
Date of donation, list and Fair Market Value for each donation of household goods and clothing items donated to a Charitable Organizations.
For more information, contact Elite Bookkeeping & Tax Services at (800) 416-3820 or (775) 884-6188 Address: 123 West Nye Lane, Suite 103, Carson City, NV 89706. Visit our website at www.elitebookkeeping.biz
Wednesday, November 6, 2013
Fast Track Settlement Program Now Available Nationwide
Fast Track Settlement Program Now Available Nationwide; Time-Saving Option Helps Small Businesses Under Audit
IR-2013-88, Nov. 6, 2013
WASHINGTON — The Internal Revenue Service today announced the nationwide rollout of a streamlined program designed to enable small businesses under audit to more quickly settle their differences with the IRS.
The Fast Track Settlement (FTS) program is designed to help small businesses and self-employed individuals who are under examination by the Small Business/Self Employed (SB/SE) Division of the IRS. Modeled on a similar program long available to large and mid-size businesses (those with more than $10 million in assets), FTS uses alternative dispute resolution techniques to help taxpayers save time and avoid a formal administrative appeal or lengthy litigation. As a result, audit issues can usually be resolved within 60 days, rather than months or years. Plus, taxpayers choosing this option lose none of their rights because they still have the right to appeal even if the FTS process is unsuccessful.
Jointly administered by SB/SE and the IRS Appeals office, FTS is designed to expedite case resolution. Under FTS, taxpayers under examination with issues in dispute work directly with IRS representatives from SB/SE’s Examination Division and Appeals to resolve those issues, with the Appeals representative typically serving as mediator.
The taxpayer or the IRS examination representative may initiate Fast Track for eligible cases, usually before a 30-day letter is issued. The goal is to complete cases within 60 days of acceptance of the application in Appeals.
SB/SE originally launched FTS as a pilot program in September 2006. For more information on taking advantage of the Fast Track Settlement program, please view the short FTS video. Additional background is available on IRS.gov on the Alternative Dispute Resolution webpage and in IRS Announcement 2011-05.
For more information, contact Elite Bookkeeping & Tax Services at (800) 416-3820 or (775) 884-6188 Address: 123 West Nye Lane, Suite 103, Carson City, NV 89706. Visit our website at www.elitebookkeeping.biz
IR-2013-88, Nov. 6, 2013
WASHINGTON — The Internal Revenue Service today announced the nationwide rollout of a streamlined program designed to enable small businesses under audit to more quickly settle their differences with the IRS.
The Fast Track Settlement (FTS) program is designed to help small businesses and self-employed individuals who are under examination by the Small Business/Self Employed (SB/SE) Division of the IRS. Modeled on a similar program long available to large and mid-size businesses (those with more than $10 million in assets), FTS uses alternative dispute resolution techniques to help taxpayers save time and avoid a formal administrative appeal or lengthy litigation. As a result, audit issues can usually be resolved within 60 days, rather than months or years. Plus, taxpayers choosing this option lose none of their rights because they still have the right to appeal even if the FTS process is unsuccessful.
Jointly administered by SB/SE and the IRS Appeals office, FTS is designed to expedite case resolution. Under FTS, taxpayers under examination with issues in dispute work directly with IRS representatives from SB/SE’s Examination Division and Appeals to resolve those issues, with the Appeals representative typically serving as mediator.
The taxpayer or the IRS examination representative may initiate Fast Track for eligible cases, usually before a 30-day letter is issued. The goal is to complete cases within 60 days of acceptance of the application in Appeals.
SB/SE originally launched FTS as a pilot program in September 2006. For more information on taking advantage of the Fast Track Settlement program, please view the short FTS video. Additional background is available on IRS.gov on the Alternative Dispute Resolution webpage and in IRS Announcement 2011-05.
For more information, contact Elite Bookkeeping & Tax Services at (800) 416-3820 or (775) 884-6188 Address: 123 West Nye Lane, Suite 103, Carson City, NV 89706. Visit our website at www.elitebookkeeping.biz
Thursday, September 12, 2013
Fourth Quarter Interest Rates 2013
Last week the IRS announced that interest rates will remain the same for the calendar quarter beginning Oct. 1, 2013. According the the announcement the rates will be:
* three (3) percent for overpayments [two (2) percent in the case of a corporation]
* three (3) percent for underpayments
* five (5) percent for large corporate underpayments
* one-half (0.5) percent for the portion of the corporate overpayment exceeding $10,000.
To read full article CLICK HERE
For more information, contact Elite Bookkeeping & Tax Services at (800) 416-3820 or (775) 884-6188 Address: 123 West Nye Lane, Suite 103, Carson City, NV 89706. Visit our website at www.elitebookkeeping.biz
* three (3) percent for overpayments [two (2) percent in the case of a corporation]
* three (3) percent for underpayments
* five (5) percent for large corporate underpayments
* one-half (0.5) percent for the portion of the corporate overpayment exceeding $10,000.
To read full article CLICK HERE
For more information, contact Elite Bookkeeping & Tax Services at (800) 416-3820 or (775) 884-6188 Address: 123 West Nye Lane, Suite 103, Carson City, NV 89706. Visit our website at www.elitebookkeeping.biz
Thursday, June 13, 2013
Limited Liability Company Classification
A Limited Liability Company (LLC) is a business structure allowed by state statute. Every state has its own regulations so it’s important to be aware of state requirements.
For example, in some states any business that requires special licensing may not be an LLC. Banks and insurance companies are typically prohibited from operating as an LLC. Also there are special rules for foreign LLCs.
Owners of an LLC are known as members. In most states there are no restrictions regarding ownership so members may be individuals, corporations, foreign entities and other LLCs.
Classification
Depending on elections made by the LLC and the number of members, the IRS will treat an LLC as either a corporation, partnership, or as part of the LLC’s owner’s tax return (a “disregarded entity”). Specifically, a domestic LLC with at least two members is classified as a partnership for federal income tax purposes unless it files Form 8832 and affirmatively elects to be treated as a corporation. And an LLC with only one member is treated as an entity disregarded as separate from it’s owner for income tax purposes (but as a separate entity for purposes of employment tax and certain excise taxes), unless it files Form 8832 and affirmatively elects to be treated as a corporation.
Effective Date of Election
An LLC that does not want to accept its default federal tax classification, or that wishes to change its classification, uses Form 8832, Entity Classification Election, to elect how it will be classified for federal tax purposes. Generally, an election specifying an LLC’s classification cannot take effect more that 75 days prior to the date the election is filed, nor can it take effect later than 12 month after the date the election is filed. An LLC may be eligible for late election relief in certain circumstances.
See form 8832 general instructions for more information.
http://www.irs.gov/pub/irs-pdf/f8832.pdf
For more information, contact Elite Bookkeeping & Tax Services at (800) 416-3820 or (775) 884-6188 Address: 123 West Nye Lane, Suite 103, Carson City, NV 89706. Visit our website at www.elitebookkeeping.biz
For example, in some states any business that requires special licensing may not be an LLC. Banks and insurance companies are typically prohibited from operating as an LLC. Also there are special rules for foreign LLCs.
Owners of an LLC are known as members. In most states there are no restrictions regarding ownership so members may be individuals, corporations, foreign entities and other LLCs.
Classification
Depending on elections made by the LLC and the number of members, the IRS will treat an LLC as either a corporation, partnership, or as part of the LLC’s owner’s tax return (a “disregarded entity”). Specifically, a domestic LLC with at least two members is classified as a partnership for federal income tax purposes unless it files Form 8832 and affirmatively elects to be treated as a corporation. And an LLC with only one member is treated as an entity disregarded as separate from it’s owner for income tax purposes (but as a separate entity for purposes of employment tax and certain excise taxes), unless it files Form 8832 and affirmatively elects to be treated as a corporation.
Effective Date of Election
An LLC that does not want to accept its default federal tax classification, or that wishes to change its classification, uses Form 8832, Entity Classification Election, to elect how it will be classified for federal tax purposes. Generally, an election specifying an LLC’s classification cannot take effect more that 75 days prior to the date the election is filed, nor can it take effect later than 12 month after the date the election is filed. An LLC may be eligible for late election relief in certain circumstances.
See form 8832 general instructions for more information.
http://www.irs.gov/pub/irs-pdf/f8832.pdf
For more information, contact Elite Bookkeeping & Tax Services at (800) 416-3820 or (775) 884-6188 Address: 123 West Nye Lane, Suite 103, Carson City, NV 89706. Visit our website at www.elitebookkeeping.biz
Wednesday, May 29, 2013
What is an Enrolled Agent?
An enrolled agent is a person who has earned the privilege of representing taxpayers before the Internal Revenue Service by either passing a three-part comprehensive IRS test covering individual and business tax returns, or through experience as a former IRS employee.
Enrolled agent status is the highest credential the IRS awards. Individuals who obtain this elite status must adhere to ethical standards and complete 72 hours of continuing education courses every three years.
Enrolled agents, like attorneys and certified public accountants (CPAs), have unlimited practice rights. This means they are unrestricted as to which taxpayers they can represent, what types of tax matters they can handle, and which IRS offices they can represent clients before.
At Elite Bookkeeping & Tax Services we currently have two enrolled agents (EAs)- Sara Zaro and Robyn Yelton. They both have many years of experience handling corporate and personal tax returns for multiple states and they also hold titles as Certified Bookkeepers (CBs).
Read more about Certified Bookkeepers below.
http://elite.homestead.com/certifications.html
For more information, contact Elite Bookkeeping & Tax Services at (800) 416-3820 or (775) 884-6188 Address: 123 West Nye Lane, Suite 103, Carson City, NV 89706. Visit our website at www.elitebookkeeping.biz
Enrolled agent status is the highest credential the IRS awards. Individuals who obtain this elite status must adhere to ethical standards and complete 72 hours of continuing education courses every three years.
Enrolled agents, like attorneys and certified public accountants (CPAs), have unlimited practice rights. This means they are unrestricted as to which taxpayers they can represent, what types of tax matters they can handle, and which IRS offices they can represent clients before.
At Elite Bookkeeping & Tax Services we currently have two enrolled agents (EAs)- Sara Zaro and Robyn Yelton. They both have many years of experience handling corporate and personal tax returns for multiple states and they also hold titles as Certified Bookkeepers (CBs).
Read more about Certified Bookkeepers below.
http://elite.homestead.com/certifications.html
For more information, contact Elite Bookkeeping & Tax Services at (800) 416-3820 or (775) 884-6188 Address: 123 West Nye Lane, Suite 103, Carson City, NV 89706. Visit our website at www.elitebookkeeping.biz
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