All Things Consulting
Renee Daggett is the founder and President of Admin Books, Inc, a bookkeeping and tax firm. She is also the author of “Your Financial Flight Plan: Pilot Your Business To Profitability”. Renee lives her live with purpose and helps her clients find peace of mind as they achieve success in their businesses.
Time after time, there are rulings from the IRS stating someone lost their deduction due to bad record keeping. Karen Hough had to pay $100,849 in taxes because she “estimated” the business expenses. She relied on her testimony to prove the deductions, while the IRS required documentation. She did not have cancelled checks or receipts. The IRS could see she spent money, but because she could not prove the items purchased, the deductions were denied. There were no excuses. I had … [Read more...]
Processing 1099’s can be confusing and frustrating. Admin Books enjoys passing on important information that will help you find your way through the requirements of 1099’s. Here are some facts you need to know! General 1099 Rule: If you pay someone more than $600 in a calendar year for services, not material/product, then you are required to provide a 1099 showing the amount you paid. One tip is to collect a W-9 at the time of payment so you know if the business is a sole … [Read more...]
I hope you have enjoyed the past days gathering with family and friends. It is good to change up our schedules and pause to ring in the New Year. I wanted to remind you of a few things…not my favorite thing to do, but important so that you will have less stress in your business and in getting ready for your tax return. Write down the odometer reading on the vehicles you use for business. It is important to know what percent you are using the vehicle for business and the amount for … [Read more...]
Probably one of the most frequently asked questions I receive revolves around auto use for business: what can I deduct?; Lease or buy?; What miles count?, etc. Here are some general rules you need to know to make sure you get every deduction allowed on your auto use! First, you need to understand that the IRS allows you to take the higher of two amounts when it comes to your auto. You can deduct the business miles driven at the IRS rate for that year OR you can deduct actual costs; such … [Read more...]
Is the tax code complicated? When you read the word, “taxes”, how do you feel? If you are like many, you feel anxious, frustrated, and angry when you think of the IRS and all their rules. So what are you to do? Well, for me, educating my clients is one of my top priorities. I strive to take the complex tax law and interpret it in English so that it is easier to understand and implement. Here are some practical questions that clients have asked in the past and the simple … [Read more...]
Recently I wrote about the importance of every business owner understanding what entity their business is in and how it works so that your can take advantage of all that it offers. And, as your company grows or changes, you need to realize that you can change the entity to minimize your taxes. Each entity has its own set of benefits. However, in today’s blog, I want to describe some responsibilities, how your financial statements are affected by your entity and plant a seed on how you … [Read more...]
Businesses are closing due to the economy. Businesses are closing due to poor management. As a financial advisor for hundreds of businesses over the years, I have noticed a pattern for those businesses that have succeeded and those that have not. Frequently, it has to do with the owner not being in the right entity or taking advantage of the entity benefits. Let me share some truths of what I see. CEO needs to understand about their entity When a business fails, I have noticed that … [Read more...]
Very frequently I get people asking me clarification on IRS rules that they heard from a friend, neighbor or colleague. Usually some part of the statement is true, but there is always more to the story or it may not apply to that person’s specific situation. How many of you heard the statement, “You can’t deduct a loss from business if it is more than 3 out of 5 years.”? Well, this is not the entire truth. A person that conducts an activity for profit is allowed to deduct the … [Read more...]
Has your friend, neighbor or colleague told you that if you take the home office deduction, it will be a “red flag” to the IRS that will trigger an audit? Well, that is just not true! In order to claim the home office deduction, you MUST QUALIFY. To qualify, you are required to meet 2 tests: regularly used and exclusively used for business. Regular Use: this test is clear – you use the area on a continuing basis. Occasional or incidental business use does not meet the … [Read more...]
Have you heard? IRS auditors are requesting a copy of businesses QuickBooks files and issued 1100 software licenses to agents. The revenue agents are to attend a 3 day training course on how to use the program on how to use the data files and create reports. The way the IRS conducts audits is not changing, just the tools are. The auditor will recite a fancy IRS code giving their authority to do so. The upside is that the IRS says it could lead to fewer requests of information. … [Read more...]
