accounting

Owning a small business has its rewards! Managing the marketing and operations can be very time consuming, yet critically important to your success. However, during tax time, now what do you do? Well, the easy answer is to plan ahead and have a clean set...

Unbehagen Advisors has been in operation since 1992, and we uniquely specialize in small businesses in the service and retail sector of the US economy.  Having worked with many successful small businesses over our rich history, we can uniquely identify what is needed to keep your...

Are you looking for a reliable team to handle all of your small business taxes and strategies? Look no further than Unbehagen Advisors. We've got your back! Here's to your SUCCESS!...

TAX TIPS FOR THE SELF-EMPLOYED Being self-employed has many advantages — the opportunity to be your own boss and come and go as you please, for example. However, it also comes with unique challenges, especially when it comes to how to handle taxes. Whether you're running...

Starting a new business is a daunting task. Various studies have cited a failure rate of 50% for new businesses within their first year. With such a high-risk factor, prospective business owners need to do their research before launching their enterprise. Here are some helpful...

Tax - Home Office Deduction How to calculate the home office deduction: 1. The regular (old) method: Taxpayers using the regular method (required for tax years 2012 and prior), instead of the optional method, must determine the actual expenses of their home office. These expenses may include mortgage interest, insurance, utilities, repairs, and depreciation. Generally, when using the regular method, deductions for a home office are based on the percentage of your home devoted to business use. So, if you use a whole room or part of a room for conducting your business, you need to figure out the percentage of your home devoted to your business activities. Then, you would multiply that percentage by the total home expenses (above) to get a yearly amount, or a monthly amount to reimburse yourself for the business use of your home from a corporation. 2. The simpler (new) IRS method: Allows for a $5/home office square foot per year. Example, 196 square feet x $5 = $980/year business expense. Divide that by 12 months and pay yourself $81.66/month as a reimbursement expense paid from the corporation to you personally each month and classified accordingly as an expense. Or, you can easily take the expense yearly as a sole proprietor entity on your Schedule C (1040). This simplified method has a maximum allowable amount set by the IRS of 300 square feet, or $1,500 deduction per year. You can use the better of the old/regular method or the new simplified method. However, most taxpayers seem to use the simplified method because it is quicker to calculate and is consistent, whereas actual home expenses change often. Here is an IRS link that explains both methods in detail, and the requirements to claim the home office deduction: http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Home-Office-Deduction Feel free to contact Unbehagen Advisors with questions. We're your small business tax experts! www.UnbehagenAdvisors.com 727-934-7759 This information is current as of 1/13/2015. Please contact Unbehagen Advisors for any changes to these rules, or check www.irs.gov
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