Category: Business Practices
Insurance proceeds for rent loss are not subject to sales tax in Florida
With the many hurricane loss claims in recent years in Florida, there is some confusion about whether insurance claims proceeds for lost rent on commercial rental properties must be reported on your monthly Sales and Use Tax Return (Form DR-15)....
Do you have a hobby or a business? The IRS will want to know…
From collecting stamps and woodworking to crafting and quilting, people have all kinds of hobbies – and most of these hobbies will never turn a profit. For hobbies that do earn income, people should know that they must report it...
Tax benefits (and pitfalls) of hiring your minor children as a small business owner
School breaks can be a great time to enlist minor children to work in your small business. As long as they're doing legitimate work for your business, you can hire your child tax-free and pay each of them up to...
Corporate Transparency Act reporting requirements coming in 2024
A new law intended to help prevent and combat money laundering, terrorist financing, corruption, tax fraud, and other illicit activity will affect millions of American businesses when it goes into effect on January 1, 2024. Broadly speaking, new regulations created...
Tax issues when operating a business as a married couple
One of the advantages of operating one's own business is hiring family members. However, the employment tax requirements for family employees may vary from those that apply to other employees. The IRS points out some issues to consider when operating...
Permanently idled property cannot be depreciated
The IRS recognizes a distinction between temporarily-idled property and permanently retired property, and the point when you stop depreciating the asset lies within the distinction. You always stop depreciating property when you have fully recovered your cost or other basis. You...
Reporting delay for thresholds for third party payment platforms
The Internal Revenue Service today announced a delay in reporting thresholds for third-party settlement organizations set to take effect for the upcoming tax filing season. As a result of this delay, third-party settlement organizations will not be required to report...
IRS tax rules for self-rental properties
When a taxpayer owns and materially participates* in an operating business AND also owns the accompanying real estate rented to that operating company, that is defined as a “Self-Rental” per IRC, Sec. §469. There are complex regulations around reporting income and losses...
Ten questions every business owner should ask before hiring a CPA firm
Ten questions every business owner should ask before hiring a new CPA firm: How long has the firm been in business? Demonstrated longevity and stability are important factors to consider. What is the experience of the staff members who will...
Investigatory and acquisition costs when starting or buying a new business may be deductible
Many business owners know their business-related expenses may be deductible, but there are different tax rules for business start-up or acquisition costs. Investigatory costs, start-up costs, organization costs, capitalized costs and expansion costs are treated by the IRS as follows:...