Hobby or Small Business?

Some of our hobbies are just that – something we do because we enjoy it & we all probably spend more money on the activity, whatever it is, than we’ve budgeted. But when does a hobby become a business? Hobby vs. Business The key factor in answering the business vs. hobby question is whether or not you are doing it…

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Don’t Confuse Cash Flow with Profits

Cash Flow and Profit are two concepts that can be confused, particularly by business owners who are unfamiliar with the accounting techniques used for recording Sales and “Accounts Receivable” when running a business. It is possible to make a Profit and still be caught in a cash flow bind. And cash flow problems can put you out of business in…

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Home Office Tax Deduction Options

If you use a portion of your home exclusively as a home office, you can usually deduct it as a business expense. And if you use a portion of your home exclusively for other business uses, such as product storage, you may also be able to deduct that expense. There are two options available to calculate the tax deduction. The…

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home & tax illustration

Underwater Homeowner Tax Relief Update

Many of us who are in real estate thought it wouldn’t happen, but in a blow to homeowners who are working their way through short sales, Congress did not extend The Mortgage Debt Relief Act of 2007 beyond 2016. It expired on December 31, 2016 and underwater homeowners lost a huge tax benefit to help them regain their financial footing….

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New Year’s Resolutions – waste of time or worth the effort?

As we head into the second half of January, how is it going with your New Year’s resolutions so far? Are you meeting all your lofty intentions or have a few of them already fallen by the wayside? If it’s the latter, you’re not alone. We’re a nation geared toward self-improvement, but changing habits is hard work & resolutions are…

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New Year’s Resolutions. Do You or Don’t You?

OK, it’s New Year’s resolution time…and I have to admit I’ve never made any. It always seemed to me that an effort to make all those well intentioned changes at once would be doomed to failure. And statistically that seems to be true for most people. Guess I’m more into doing things on a gradual basis…more along the lines of…

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Get a Tax Deduction for Unreimbursed Employee Business Expenses

Paying for business expenses or business related auto expenses out of your own pocket? If your company does not or cannot reimburse the expenses, you might be able to use them as a personal tax deduction. How to Claim Business Expenses Unreimbursed business expenses can be claimed on Schedule A (Itemized Deductions) of your 1040 tax return. If you don’t…

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paper calendar pages flipping

‘Tis the Season to Give – 6 Tips on Deducting Charitable Donations

As we move into the end of 2017, many folks are looking at making their final charitable donations for the year. Here are a few tax related tips: 1. The IRS requires written documentation for donations of ANY amount – keep your credit card statements, check copies or electronic transfer confirmations. The documentation should show the name of the charity,…

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