Small Business Accounting

Effects of the Death Tax on Family Businesses

A family-owned business stands to lose 55% of all its assets when it passes from one generation to the next. This is due to the federal ?death tax? that is applied to the portion of estates. Take a look at how your client can learn to bypass this problem and protect their business for their heirs

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Step by Step: Filling Out Form 941

Each quarter (15th of January, April, June and September) employer’s must file Form 941 with the IRS outlining the withheld income taxes including all tips, wages, sick pays, unemployment benefits, etc plus social security and Medicare taxes. This article will help you in filling out the form 941...more

How to Use the Accrual Method?

The purpose of the accrual method of accounting is to match income and expenses in the same year. Under this method of accounting, income is generally reported in the year it is earned and expenses are deducted or capitalized in the year they are incurred...more

Using the Cash Method

Primarily, individuals and sole proprietors who do not have inventory use the cash method of accounting. If inventory is necessary to account for your client's income, the accrual method of accounting is used for sales and purchases...more

Businesses that abuse tax shelters are being sought out

According to the IRS, "an ‘abusive tax shelter’ is a marketing scheme that involves artificial transactions with little or no economic foundation." See why IRS believes that this is more true today than every before.

How Small Businesses Benefit from the Section 179 Deduction

Let us show you the benefits that can be enjoyed by everyone, especially small businesses, from the section 179 deduction. The maximum deduction for the year 2000 is up to $20,000 from $19,000 in the previous year.

The General Business Credit

Some tax credits are listed under the general business credit, which is figured out using the credit from this year plus the carry forward from previous years.

Value of the Inventory

If your client is a business owner with leftover inventory in their warehouse, you can deduct the cost of these items on their tax return. Two things need to happen for this deduction to work. This article will show you how to determine the cost of your client inventory.

Business Tips for Lessening Your Client's Tax Burden

The only way the IRS makes money is when your client makes money. In the case of small business this statement can't be truer. Every year IRS collects close to 50% of their taxes from them.

IRS Encourages Businesses to E-File

If your client is an owner of a business whose tax deposits for one calendar year exceed $200,000 then they are required to use the IRS’ Electronic Federal Tax Payment System (EFTPS) starting in the second succeeding calendar year (If your client exceeded this amount in 1998, then starting Jan 1st, 2000, they have to start using EFTPS).

Coming Up With a Plan to Beat the Death Tax

In part due to the more than nine years of US stock market gains coupled with the fact that the economy is in the midst of its longest running expansion ever, a new class of Americans who need to be concerned with estate taxes and the infamous "Death Tax" has been created. Find out how you can beat it!

Saving Taxes With the Home Office

What form do I use for my client to claim business use of his home for tax deduction purposes on his tax return? What are the criteria that must be met in order to be able to use this deduction? Find out the answers here!

Claiming Tax Deductions Working at Home

Your clients are now entitled to claim a home deduction if their home office is used to conduct administrative or managerial activities provided there is no other location where they may conduct these types of activities?