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Adam’s Tax Accounting Service Blog

Note: Tax advice, articles, and content contained on this site are intended for informational and educational purposes only. They are not a substitute for professional advice. Tax matters are can be extremely complex and vary greatly for each individual or company. Please click here to read our complete disclosure and disclaimer for the information presented on this site.

To Deduct Business Losses, You May Have To Prove “Material Participation”

Posted by on Aug 5, 2016 in Blog, General, Management, Tax Tips | Comments Off on To Deduct Business Losses, You May Have To Prove “Material Participation”

To Deduct Business Losses, You May Have To Prove “Material Participation”

You can only deduct losses from an S corporation, partnership or LLC if you “materially participate” in the business. If you don’t, your losses are generally considered “passive” and can only be used to offset income from other passive activities. Any excess passive loss is suspended and must be carried forward to future years. Material participation is determined by the amount of time you spend in a business activity. For most business owners, the issue rarely arises — you probably spend more than 40 hours working on your enterprise....

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Still Time For Homeowners To Save With Green Tax Credits

Posted by on Aug 2, 2016 in Blog, General, Management, Tax Tips | Comments Off on Still Time For Homeowners To Save With Green Tax Credits

Still Time For Homeowners To Save With Green Tax Credits

The income tax credit for certain energy-efficient home improvements and equipment purchases was extended through 2016 by the PATH (Protecting Americans from Tax Hikes) Act of 2015. So, you still have time to save both energy and taxes by making these eco-friendly investments. What qualifies? The credit is for expenses related to your principal residence. It equals 10% of certain qualified improvement expenses plus 100% of certain other qualified equipment expenses, subject to a maximum overall credit of $500, which is reduced by any credits...

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Lower Gas Costs = Lower Business Driving Tax Deductions

Posted by on Jul 25, 2016 in Blog, General, Management, Tax Tips | Comments Off on Lower Gas Costs = Lower Business Driving Tax Deductions

Lower Gas Costs = Lower Business Driving Tax Deductions

This year, the optional standard mileage rate used to calculate the deductible costs of operating an automobile for business went down. Why? Since gas prices are lower than last year, the cost of driving is less and therefore so is the deduction. This year’s rate Beginning on January 1, 2016, the standard mileage rate for the business use of a car (van, pickup or panel truck) is 54 cents per mile. For 2015, the rate was 57.5 cents per mile. The cents-per-mile rate is adjusted annually by the IRS. It is based on an annual study commissioned by...

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Can You Claim A Home Office Deduction For Business Use?

Posted by on Jul 25, 2016 in Blog, General, Management, Tax Tips | Comments Off on Can You Claim A Home Office Deduction For Business Use?

Can You Claim A Home Office Deduction For Business Use?

You might be able to claim a deduction for the business use of a home office. If you qualify, you can deduct a portion of expenses, including rent or mortgage interest, depreciation, utilities, insurance, and repairs. The exact amount you can deduct depends on how much of your home is used for business. Basic rules for claiming deductions The part of your home claimed for business use must be used: Exclusively and regularly as your principal place of business, As a place where you meet or deal with patients, clients, or customers in the...

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The “Kiddie Tax”: A Trap for the Unwary

Posted by on Jul 25, 2016 in Blog, General, Management, Tax Tips | Comments Off on The “Kiddie Tax”: A Trap for the Unwary

The “Kiddie Tax”: A Trap for the Unwary

It’s common for parents, grandparents and others to make gifts to minors and college students. Maybe you want to do this to help fund education expenses or simply to remove assets from your taxable estate. Or maybe you’re hoping you can shift income into a lower tax bracket. Whatever the reason, beware of the “kiddie tax.” What is the kiddie tax? For children subject to the kiddie tax, any unearned income beyond $2,100 (for 2016) is taxed at their parents’ marginal rate (assuming it’s higher), rather than their own likely low rate. Let’s say...

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2016 Tax Calendar

Posted by on Jan 29, 2016 in Blog, General, Management, Tax Tips | Comments Off on 2016 Tax Calendar

2016 Tax Calendar

2016 Tax Deadlines for Texas Small Businesses The New Year means it’s time to update your calendar with this year’s tax filing deadlines. I realize it’s not as much fun as updating your calendar with the dates for this year’s vacation or family celebrations, but if you don’t want to spend your vacation money on penalties for filing late – you should probably take a minute to make a note of them. Note: This calendar covers the deadlines that most businesses must meet. It does not cover every deadline or every situation. Please contact the...

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IRS Tax Payment Plans Make It Easier to Face Your Tax Bill

Posted by on Sep 2, 2014 in Accounting, Blog, General, Tax Tips | Comments Off on IRS Tax Payment Plans Make It Easier to Face Your Tax Bill

IRS Tax Payment Plans Make It Easier to Face Your Tax Bill

If you should find yourself in a position where you owe the IRS a good deal of money – don’t panic. You’re not alone. There are a lot of people who face the same situation. It could be because they didn’t have the cash available to pay the bill at the time, forgot to file tax returns in past years, or simply filed incorrectly. Luckily, the IRS has a simple way for you to pay your tax debt through their installment agreement plans. These IRS tax payment plans can help you avoid any unnecessary penalties and interest. The first step before...

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Tax Refund Scams Are More Common Than You Think

Posted by on Jul 7, 2014 in Blog, General, Tax Tips | Comments Off on Tax Refund Scams Are More Common Than You Think

Tax Refund Scams Are More Common Than You Think

Imagine being excited about your tax return (it’s a stretch I know!) because this year you finally get a refund instead of having to pay the IRS. Then when you go to file your return you find out someone else already did it and used your name to claim your hard-earned refund. You’ve become part of the growing number of Americans being victimized by identity thieves filing fraudulent tax returns using tax refund scams. Just like all forms of identity theft, this problem has become more common in the recent years. A US Treasury Inspector...

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What You Need to Know About Changes to Depreciation Before Buying New Equipment

Posted by on Jun 18, 2014 in Blog, General, Tax Tips | Comments Off on What You Need to Know About Changes to Depreciation Before Buying New Equipment

What You Need to Know About Changes to Depreciation Before Buying New Equipment

Think you can write off that shiny new equipment like last year? Think again. The depreciation rules are different now. If you’re a business owner you’ve probably always have one piece of equipment in mind – the one that needs to be replaced or purchased to make your business more profitable or your workflow easier. It could be new computers, manufacturing equipment, or anything that make your business run easier and smoother. Normally, when a business purchases equipment, the expense must be capitalized and deducted over several years....

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How The Affordable Care Act (Obamacare) Could Impact Your 2014 Taxes

Posted by on May 30, 2014 in Blog, General, Tax Tips | Comments Off on How The Affordable Care Act (Obamacare) Could Impact Your 2014 Taxes

How The Affordable Care Act (Obamacare) Could Impact Your 2014 Taxes

The Affordable Care Act (commonly referred to as Obamacare or ACA) has probably had the most widespread impact of any law passed in the last decade. Regardless of your personal beliefs about the law, it’s not going to go away. So you need to understand what it means for your 2014 tax returns. Understanding the Penalties For Not Having Health Coverage The part you probably know is that under Obamacare the majority of Americans are legally required to have health insurance that meets the law’s minimum coverage standards – sort of like the...

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