The Small Business Tax Help Blog

Archive for April, 2008

Question: Does Palin know the difference between income tax and Business Tax?

She just said millions of small businesses would be taxed more due to Obama’s tax income tax increase for those who make more than $250K.
To those of you who say Palin was correct read this: http://www.factcheck.org/elections-2008/mccains_small-business_bunk.html

Or I’ll just sum it up for you: She was wrong when she said millions of small businesses would see their taxes increase under Obama’s tax plan and many would get a tax cut.

Answer: It depends on how you're filing your taxes. Not all "businesses" are set up the same way so they aren't taxed like others.

An independent psychologist or a hairdresser won't be set up the same the local ice cream or pizza shop will.

Obama unveils health care plan; combines Senate and House bills

Obama unveils health care plan; combines Senate and House bills

Obama's Small Business Plan Rollout Conveniently Ignores Tax Increase

Question: Tax return question: how do I deal with the employee business expense deduction?

I’m an employee of a private employment agency in the US and I was sent to Europe for five weeks of work at a foreign firm. My airfare and housing was paid directly by the US agency. I was paid directly to my NY bank. I paid for all my own meals and other expenses but I received in cash $100 a week from the foreign firm (which did not cover my meal expenses).
From my reading of IRS Publication 463, the meal cost is deductible but it seems I don’t have to use my actual receipts or memory and can use the Fed per diem rate. But that rate is $170 A DAY!
Does that mean I can deduct $6800 for my 40 days there? That seems insane and doesn’t include laundry, taxis, telephone, etc.
I’m a little nervous to put this down.
I’ll add a sub-question: 2 weeks into the 6 week assignment I flew back to my tax-home for 1.5 days for a family wedding. I went right back to work the next day. Is the airfare deductible as a travel expense?

Answer: Yes, you can claim the per diem, however, you said that you received $100 in cash per week from the foreign firm. So if you are going to claim the full per diem for meals, then you need to claim the $100 in cash per week you received as income as well. The alternative is to reduce the per diem deduction claimed by the amount of cash you received. Also, you need to use just the meals and incidentals portion of the daily per diem. You cannot claim the housing portion of the daily per diem as your housing was paid by the US agency. The per diem rate is the amount that the IRS allows you to claim that you do not need to show receipts for. If your actual expenses exceeded that, then you can claim actual expenses, but you have to be able to support it with receipts if the IRS questions it. Also, note that the meals and incidentals per diem does not include travel expenses that you incurred, such as taxis. So you would be able to claim that as well.

5 Things You Should Do Before You Have Your Taxes Prepared

Last year was a prosperous year for some, while a struggle for others, but one situation remains certain: it is time to prepare for tax season. Getting your Small Business Taxes prepared can be a chore.

The Chosen One Part2 JOBS in 30 Days

Question: Illegal Mexicans… Taxes and Benefits Received?

I’ve heard some ridiculous arguments about Mexicans paying taxes and it’s about time the record was set straight. Most illegal Mexicans do not pay Federal income tax. Granted, there are a handful that have fake Social security cards and income tax does indeed get taken from them, but not many illegals have fake Socials. Most illegals get paid either “under the table” or “off the books”, which means there’s no official record of their employment. Hence, no income tax taken out. Some will argue that “well, they pay sales tax on everything they buy.” Whoop-de-f**king-doo. My 4 year old nephew pays sales tax whenever he buys a nickel stick of bubblegum. When you look at the services they receive such as free education, meals at school, emergency room medical care, food stamps, WIC and other forms of welcare … that comes from taxpaying U.S. citizens. It’s only fair that we tax money sent back to mexico to make up for the loss.

Answer: Dont be greedy . the moment a mexian got a legal job they would happily pay taxes, but if the dont have a green card and they earn 4 ot 5 dls an hour it kind of shitty to sak for taxes huh? let them have real jobs if you want them to pay real taxes. They need the money much more than you world invaders DO

Groups must repay Scott Rothstein donations

More than $2 million in donations doled out by disbarred attorney Scott Rothstein have come back to haunt many of the South Florida charities and nonprofits that once counted on the largess of the alleged fraudster.

Federal Elections Commission Candidate Disclosure

Question: Do you need a new TIN# (EIN#) if you buy a business (LLC) from someone?

A business was just recently bought and the actual name of the company will not change but the old owners name is still listed under the company and either his name needs to be removed or changed to the new owner. If this is done, will a new tax id # need to be issued?? Are you allowed to keep the old TIN# once you bought the business???

Answer: Yes, you may keep the old EIN. The business has not changed, only the ownership has. Have you considered additional issues such as technical termination and Sec 754 Step Up? If there was a 50% or more change in ownership within a 12 month period, then the partnership is deemed to have terminated and reformed as of the date of sale. You will have to file a short period return from the beginning of the year to the date of sale and a second short period return from the date of sale to the end of the year. Also, you may be able to step up the basis of the partnership assets under Sec 754 and depreciate the step up if the purchase price of the partnership interest exceeds the partnership's tax basis in its assets. Transfers of ownership can be a very sticky area for partnership tax. Let me know if you need additional explanation.

1,000 line up to fast-track a job at Millville's New Jersey Motorsports Park

Job seeker Kathy Sacca of Millville, left, gives her application to Karen Taylor at the New Jersey Motor Sports Park in Millville on Monday during its annual job fair.

Iriepathie feat. Anthony B - One Love we need (version)/ Ein

Question: If my independent contractors fail to 1099 Misc me for rent they have paid me wil I get in trouble ?

They pay me chair rent and should issue me 1099 misc come tax time, but they never do. Am I in trouble or are they…or both. I can’t force them to 1099 me…? I am an LLC/Partnership.
I issue the independent contractors receipts…

Answer: From your side the 1099's don't matter, and it would be unusual if they did give you a 1099. With or without them, you must report the income from the chair rent on YOUR schedule C - they'll report the expense on theirs.

Pleasanton Oks New General Plan, Livermore Begins Planning for BART

The second half of 2009 continued to see the state budget impact local programs and services. After seven years, Pleasanton approved its new general plan. Pleasanton continued to deal with lawsuits. A Court of Appeal validated the Oak Grove referendum effort.

October 19 - 10 People WIN Today's Shirt from MBO Partners