As you consider hiring employees to help with your business, you’ll need to take into account the additional employment tax responsibilities that come along with it. You need a good grasp of what your business and your employees are responsible for paying. Legally, you’re the collector and gatekeeper of both payroll and income taxes, and…
All Business Taxes Articles
Section 179 Deduction for Property, Equipment & Vehicles
The Section 179 deduction allows business owners to immediately deduct up to $1,020,000 of the cost of qualifying property and equipment purchases for the 2019 tax year. The advantage of the deduction is you immediately receive the tax savings from an equipment purchase rather than gradually saving taxes through depreciation in future years. What Is…
IRS Schedule C Instructions Step-by-Step
Schedule C, also known as “Form 1040, Profit and Loss,” is a year-end tax form used to report income or loss from a sole proprietorship or single-member LLC. You must file a schedule C if the primary purpose of your business is to generate revenue/profit and if you’re regularly involved in your business’s activities. Schedule…
IRS Business Expense Categories List [+Free Worksheet]
Due to the vast number of industries that exist, it is impossible to list every single business expense. However, there is a comprehensive list of common IRS business expense categories applicable to most businesses. In addition, streamlining the process of tracking your business expenses will ensure that you don’t miss out on any tax deductions….
Standard Mileage Rate for 2019 and 2020
If you use your vehicle for business, medical, or charitable purposes, you may qualify for a tax deduction. The deduction is calculated based on a mileage rate times the number of miles you drive. You must keep accurate records of your miles to qualify for the standard mileage rate deduction. Mileage Rate for 2019 The…
Small Business LLC Taxes & LLC Tax Returns (+ Free Checklist)
LLC taxes are generally reported as a sole proprietor (one owner) or a partnership (multiple owners). Sole proprietors and partnerships are flow-through entities, so the income is taxed on the owner’s tax return. However, it may benefit you to elect for your LLC to be taxed as a C corporation or S corporation. Limited liability…
Form 1065 Instructions in 8 Steps (+ Free Checklist)
Partnerships and certain LLCs must file Form 1065 every year to report their income and expenses. Income and expenses reported on Form 1065 flow through to partners and are taxed on their tax return. While Form 1065 does not generate a tax liability, it is very important to complete it on time and accurately. The…
IRS Form 8832 Instructions & FAQs
IRS Form 8832 is filed by limited liability companies (LLCs) to be taxed as C corporations (C-corps). LLCs also file Form 8832 to revert to being taxed as a sole proprietor or partnership if C corporation status was previously elected. An LLC that doesn’t file Form 8832 is taxed as a sole proprietor or partnership….
IRS Form 720 Instructions: How to Complete in 8 Steps
IRS Form 720 is used to report and pay your federal excise tax liability for certain products that are manufactured, produced, or imported like fuel as well as services like airline travel. It is not used for alcohol, tobacco, and firearms, which use Form 5000.24. We will discuss IRS Form 720 instructions. The completion of…
16 Tax Write Offs for Self-employed Professionals 2019
Running a business can be expensive, especially when taxes decrease your bottom line. Luckily, there are numerous tax write offs that self-employed professionals can claim to save thousands of dollars. Use IRS Form 1040 to deduct home office, insurance, travel, internet, phone, and other qualifying expenses that you incur operating your business. Here is a…
6 Best Tax Software for Tax Preparers 2019
We compared over a dozen tax software programs and narrowed it down to six. Tax software is the core of a tax preparer’s business, and the best tax software for tax preparers includes preparing individual and business returns. Plus, tax preparers can work efficiently with accounting software integrations and collaborate using a secure client portal….
Independent Contractor Taxes: How Much to Pay & When to File
Independent contractor taxes include federal income tax, self-employment tax, state and municipal taxes. Independent contractors who are sole proprietors report taxes on Form 1040 and Schedule C. Taxes are due on April 15 or October 15, if filed on extension. Independent contractors are required to make estimated tax payments or with the tax return. This…
