Your Tax Place, Inc. - Tax Savings Strategies

  What is an ASSET and WHAT Makes it DIFFERENT from SUPPLIES? Purchasing an ASSET is the easy part , but when it comes to  Deducting an ASSET  on your tax return,   it must be reported differently   than the other expenses such as  SUPPLIES. Did you buy a CB Radio, Refrigerator, a Truck or anything else to be used in your business that is expected to keep its value for more than 1 year and cost more than $100? If you did, you purchased an ASSET for your business. An ASSET is something that provides a current, future, or potential economic benefit for an individual or business or other entity and has the following characteristics: FAIR MARKET VALUE EXCEEDS $100 WHEN PURCHASED IS DESIGNED TO HAVE A USEFUL LIFE AND FUNCTION FOR MORE THAN 1 YEAR IS OWNED (not leased/rented) BY YOUR BUSINESS WAS PURCHASED NEW OR USED WAS PURCHASED BY YOUR BUSINESS AND IS USED IN YOUR BUSINESS Is both ORDINARY and NECESSARY to you...

  Do you pay your workers as EMPLOYEES or CONTRACTORS? With the NEW YEAR now here, it's TIME TO GET THIS RIGHT! One of the most recent HOT TOPICS with both the IRS and the DOL is to investigate businesses for the MISCLASSIFICATION of their WORKERS. For the past few years, businesses have misclassified their workers as contractors instead of employees in order to save 7.65% in matching payroll taxes. Because these businesses have been able to get by without being monitored and corrected, these business owners have become comfortable with this process and don't think they are doing anything wrong. In fact, because a lot of businesses have been operating this way, new business owners starting up the same business believe that it is ok to operate like this as well. The IRS has been aware of this problem and now are about to use their newly hired employees to become very aggressive about correcting this KNOWN PROBLEM to assess back withholding taxes and penalties to those ...

 Sole Proprietor, LLC or Corporation Which is the best for your business? As a business owner, you should be aware of what each type of business entity offers in terms of taxes, liability protection, and control over the business. The easiest and most common business type is the Sole Proprietorship. As a sole proprietor, you automatically get the new (and misunderstood) responsibility of "self employment" taxes. Sole Proprietorship You have NO LIABLITY protection for your personal assets in case of a lawsuit You have COMPLETE CONTROL over how to run and manage your business There are not usually any start up fees required Most new businesses start out this way until they get a better education about the other options. LLC business type The LLC is also very popular choice among new business owners, but it is not always chosen for the right reason.  Some people claim that there are more tax advantages than a sole proprietorship. However, the truth is, an LLC does not differ...

  2022 tax season is about to begin, here are a few things that I experienced with my clients that you will want to do in preparation of the next tax season: 1. Get your receipts organized NOW and sent to your tax preparer EARLY.  If you are the DYI type and don't use a bookkeeping service, it is better for both YOU and YOUR TAX PREPARER to get your receipts separated and totaled by expense and sent to her several weeks before the due date. This will give her time to review the receipts for deductibility and accuracy before reporting it on the tax return. 2. Create a file folder to keep your tax forms like W2, 1099, Profit/Loss statements, brokerage statements, closing documents for house purchases, estimated tax payment confirmations until tax time. 3. If you purchased a home in 2022 or earlier, locate the original closing statement for the home purchase and KEEP IT FOREVER! Or, at least until you sell it. Your tax p...

 How to Maintain Success as an Owner Operator - 2022 As an Owner Operator, have you noticed your paycheck  slowly become  LESS and LESS instead of MORE and MORE in comparison with what you have experienced in the past 2 years??? Since 2020 when COVID hit, our economy has NOT BEEN STABLE and has caused many economic imbalances that have NEVER BEEN SEEN BEFORE! I have been in the trucking and transportation industry for 17 years and have NEVER SEEN the consistent $3,000 to $10,000 NET weekly payouts to drivers that I have been seeing in the past 24 months. Most of you veteran drivers have not ever seen this before, either.   And we all  say,  IT'S ABOUT TIME! Unfortunately, these Skyrocketing Rates  that are driving up your pay are NOT SUSTAINABLE , and WILL DESTROY OUR ECONOMY if left too high for long. The Trucking industry is used by economists to predict the health of the economy and to make necessary changes, which is a BIG ...

  Owning a Business is NOT something that is usually taught in our primary or secondary school systems.  During these early years, we are trained to become compliant, obedient EMPLOYEES so we can work for someone else in THEIR businesses.  Business Ownership is usually a choice but can also occur by accident after someone convinces us to accept a CONTRACTOR JOB with a company under the guise that we will "MAKE MORE MONEY"... for them, e.g owner operator .  Becoming a contractor “relieves” the hiring company from the responsibilities of having to pay the cost of insurance, vacation pay, sick pay, taxes, and many other perks for you.  Those financial responsibilities then belong to YOU and because the contracting company is now saving a bundle of cash they are glad to pay you a little more to relieve them of these responsibilities. You, as a new business owner, will find yourself needing that extra money so you can pay your own income taxes, health insurance and ...