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The IRS announced last week the annual cost of living adjustments for various tax-related provisions for 2018. Keep in mind, these new numbers are for tax year 2018 (beginning January 1, 2018 thru December 31, 2018), which the return will be filed in 2019. Additionally, these are the amounts as the law stands today. If President Trump’s tax reform plan is passed, the amounts below may be affected. Refer to the table below for some of the key area updates:   Tax Provision 2018 Amounts 2017 Amounts

In order to qualify as a business for tax purposes, an activity must be actively engaged in for profit. To determine if a taxpayer has a profit motive, the IRS looks at various factors which are often subject to judgment. It is important for a taxpayer to be able to prove they are a business, as the tax treatment is much more favorable. If an activity is a business activity, expenses will be deductible and losses may be used to offset other income. The taxpayer can also deduct health insurance premiums and

Companies with less than 100 employees claimed a median loss of $150,000 as a result of fraud during 2016, according to the Association of Certified Fraud Examiners. Here are some tips to protect your small business from common frauds: Protect your IT infrastructure by instituting strict access and password policies. Control the credit cards and bank accounts usage by using dedicated computers for online banking with multiple layers of security. Educating your staff with basic training that can guide them t

Travel expenses are deductible to the extent they are considered business expenses. The Internal Revenue Service defines business expenses as, those that are ordinary and necessary expenses of traveling away from home for your business, professions, or job. If you are eligible for reimbursement under an employer accountable plan you can not deduct those expenses, even if you did not seek the reimbursement from your employer. Effective October 1, 2017, you can use the link below to find the federal governmen

The qualifying mileage deductions permitted by the IRS does not include your commute from home to your permanent work location. However, if you travel to and from off-site meetings, business events, or even lunch or dinner with a current or prospective client, you can take the mileage deduction. Documentation for these eligible miles has to be thorough in order to comply with the strict IRS standards in case you are audited in the future. Every time you use your vehicle for business purposes, you should doc