Category Archives: Uncategorized

Section 179 Limitations & Carryforwards

Generally, the Section 179 deduction is limited to the income of the business before consideration of the deduction (i.e. you generally cannot take the Section 179 deduction if it will generate a loss.) However, if your Section 179 deduction is … Continue reading

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Form 1099s for nonemployee compensation and other information returns

For 2016 and later years the penalty for not filing a Form 1099 when you should have is $250 per form. If you file it late the penalty is $15 if filed within 30 days after the due date. If  … Continue reading

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Property subject to depreciation changed starting in 2016

Prior to 2016 property that was generally required to be capitalized and depreciated was property with a cost of $500 or more. Starting in 2016 this amount was increased to $2,500.

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New Due Dates For Partnership Income Tax Returns

Starting with the tax year end of 12/31/15, the new due date for partnership income tax returns is March 15th of the following year. The reason for this change is that it will give partners more time to prepare their … Continue reading

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Related Party Loans and Documentation

Recently, there have been a number of cases disallowing bad debt deductions, particularly for loans to shareholders and related parties. If a related party loan becomes worthless, it is treated no differently from a debt to an unrelated party. Of … Continue reading

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Receipt not needed for travel expenses other than lodging that are under $75 per expenditure.

If a travel expense is less than $75, the IRS does not require that it be documented with a receipt to be deductible unless it is for lodging. If a travel expense is for lodging, then it must be substantiated … Continue reading

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Per diem rates for meals & incidental expenses and lodging

The IRS permits the use of per diem rates for meals and incidental expenses and a separate rate for lodging for the deduction of travel expenses. The amount of the rates depends upon the location that is traveled to. As … Continue reading

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Per Diem Rates for Meals and Lodging

The standard meal allowance for meals while traveling outside your tax home is the federal M&IE rate. Most major cities and many other localities in the United States are designated as high-cost areas, qualifying for higher standard meal allowances. Note that in … Continue reading

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Deductions for Mortgage Interest and Real Estate Taxes

In order to deduct mortgage interest the mortgage must be a secured debt on a qualified home in which you have an ownership interest. This means that if you do not have an ownership interest in the property you cannot … Continue reading

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Claiming a dependent when they file their own tax return

If your son or daughter or other dependent files their own tax return and claims a personal exemption for themselves, you will not be able to claim them on your tax return. If the value of the exemption is worth … Continue reading

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