Entertainment – No Business Deduction in 2018

Entertainment-Expenses-How-Will-Your-Business-be-Impacted

Under the Tax Cuts and Jobs Act, beginning in 2018, the costs of entertainment expenses are no longer tax deductible. With the old tax law, 50% of entertainment was an acceptable tax deduction for businesses.

Entertainment expenses are for the experiences and events that some businesses have offered clients in the past. Typical entertainment might be 18 holes on the golf course, front row seats at a concert, tickets to sports games or a weekend ski trip.

Business related meals with clients are still 50% deductible. Some businesses may choose to have more dinners, and less experiences/events with clients. Be careful of your choice. Some extremely expensive restaurants with live music, might be considered as entertainment rather than a business meal.

Some businesses may find ways to get around this. Promotional events are deductible as a marketing expenses, so you might see companies brand outings with more advertising, to qualify for the deduction. Tax Tip: The business sales pitch should last the entire duration of the event, rather than just a limited time. 

 

With Honor and Thanks on Memorial Day

All gave Some Some gave all Memorial Day

On this Memorial Day, we stop to give honor and thanks to all those who gave of themselves, and those who made sacrifices to protect our freedom.

We remember, and we thank you!

 

 

 

Amending Tax Returns

amendtaxreturn

You can file an amended return to correct errors on your originally filed tax return by filing Form 1040X. You will have to file this by mailing a paper copy to the IRS.

Learn more about filing an amended return by watching this IRS Video – Amending My Return

Audit Representation-Partner With a Pro

greedy man with money cartoonIt pays to Partner with a Pro for Audit Representation! I have two clients who recently retained my audit representation services, and are now celebrating their savings!

I was able to help Client 1 by reducing their penalties by 50%, for issues resulting from them attempting to self-prepare their tax returns. They now see the advantage of partnering with a Pro.

Client 2 received a “NO CHANGE TO YOUR RETURN” letter from the IRS, as a result to the audit response I prepared. They had all necessary receipts and tax details, resulting from my consulting with them in how they needed to keep their self-employed business books. They are thankful they partnered with a Pro!

I work hard to keep current on all updates to IRS Audit Representation, by carefully choosing continuing education classes each year, by the best in the industry. My client’s success defines my success.

 

 

Tax Fact – IRS Uses Social Media

Tax FactsThe IRS has trained their revenue agents to gather information on Facebook and other social media sites. Your social media information could be included in an IRS tax examination of your taxes.

Mind Blowing Numbers

I’m a numbers gal!Taxing Accountant

 

One more thing many of us didn’t
noticed is that 9 is the sum of all the
table result digits. Let me show you:

9 X 1 = 09 and 0 + 9 = 9
9 X 2 = 18 and 1 + 8 = 9
9 X 3 = 27 and 2 + 7 = 9
9 X 4 = 36 and 3 + 6 = 9
9 X 5 = 45 and 4 + 5 = 9
9 X 6 = 54 and 5 + 4 = 9
9 X 7 = 63 and 6 + 3 = 9
9 X 8 = 72 and 7 + 2 = 9
9 X 9 = 81 and 8 + 1 = 9
9 X 10 = 90 and 9 + 0 = 9
Isn’t this mind blowing?????Numbers Cartoon

Tax Fact – IRS Audits

Tax FactsThe chance of an IRS audit for partnerships and corporations is substantially less than self employed sole proprietors.

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