New Repair and Maintenance Temporary Regulations
The IRS has again attempted to define what constitutes a cost that is a normal repair or maintenance expense versus what has extended use and therefore must be capitalized. What a mouthful! And so are the 157 pages of new temporary regulations! These regs will virtually affect all business taxpayers beginning in 2012. The only [...]
Are you eligible to claim a home-office deduction?
Running a business from your home could save you taxes! Before you go through all of the trouble of filing out IRS Form 8829 consider whether the home office deduction is worth it or not. To help make that consideration you must pass the 4 question test: Is the home office used in a [...]
Ohio Minimum Wage Set to Increase on January 1, 2012
Ohio’s minimum wage is scheduled to increase on January 1, 2012 to $7.70 per hour for non-tipped employees and to $3.85 per hour for tipped employees, plus tips. Ohio’s current minimum wage is $7.40 per hour for non-tipped employees and $3.70 for tipped employees, plus tips. On January 1, 2012 the increased minimum wage will [...]
Intercompany Management Fees – The Need For Proper Documentation
The IRS had disallowed over half of the management fees paid between two related entities. Now the Tax Court has agreed per T.C. Memo 2011-236. A taxpayer owned trucks in a single member limited liability company (LLC) and leased them to his wholly owned corporations. The corporations paid a flat monthly fee to the LLC. [...]
Best Practices for W-9 Forms
The purpose of a W9 form is to request tax payer identification to determine tax status clarification for vendors. The form certifies if the vendor is exempt from backup withholding and also clarifies if the vendor should receive a 1099 for payments made. Obtaining W-9 Forms for 1099 processing should not be a year-end event. [...]
