How to Avoid Tax Audit or 8 Reasons Why You Can be Audited
Many of the small business owners would love to take precautionary steps to avoid tax audit rather than living in fear all the time. There are several reasons why IRS can audit one company instead of another one. Some of them are more complicated than you think, some of them can be easily fixed. Let's look closer at the most common triggers for a small - business tax audit. IRS uses the specific software (Discriminate Function System) to analyze returns and flag them if somet
3 Reasons Why Do You Need to Hire Bookkeeper for Your Small Business?
Being an entrepreneur requires a lot of time and dedication. Most of the small business owners wear several hats. CEO, manager, employee, computer tech ... the list goes on. Sometimes you become overwhelmed with secondary tasks rather than spending time with your clients. If you are an entrepreneur who wants to start your own business, or already a business owner, you need to hire a professional bookkeeper. Here are 3 reasons why: 1. Opportunity cost. Bookkeeping is taking a
When Can You Claim the Home Office Deduction?
Many entrepreneurs start their business from their home, garage, or a basement. However, not everyone meets the criteria to claim the home office deduction. There is a simple explanation when you can use home office deduction. IRS states that you have to meet 2 conditions: 1. Regular and exclusive use. This rule states that the space that you use for a home office must be only for a business use. For example, you can not use your guest bedroom for the office and for your gue
4 Tax Deductions Which Would Not Exist Anymore in 2017
Every year the government of the United States makes changes to the tax laws. At the end of 2016, Congress of the United States cut off some of the credits and deductions. Here is what can affect your 2017 tax return: 1. Mortgage Insurance Premium Deduction Mortgage Insurance Premium or MIP is paid if your down payment is less than 20% on your home loan. The MIP must be paid by the buyer to protect the lender from losses in case if the buyer is not able to make mortgage paym