Category Archives: Expenses

4 Things Your CPA Wishes You Knew

  Your accountant is like your physician for your finances. He or she can only do so much with things that have already occurred, but when consulted about future events (i.e. “I’m thinking of running a marathon next year – is there anything I should be concerned about?”), they may have helpful advice that may…

A minimum wage hike to $15 an hour?

Could a minimum wage increase be a good idea? A Colorado Accountant gives his opinion. The US Department of Labor website states, “Since 1938, the federal minimum wage has been increased 22 times,” and that “an overwhelming majority of Americans support an increase.” (source: http://www.dol.gov/minwage/mythbuster.htm) Overall, raising minimum wage to keep up with inflation and…

How the change in definition of Repair and Maintenance Affects Small Business Taxes

The IRS recently released final regulations regarding the treatment of acquiring, producing, maintaining, and producing tangible property.  These regulations provide for a new definition of Repair and Maintenance which can significantly affect small business taxes.  Many small businesses will need to file a Form 3115 Application for Change in Accounting Method to apply this new…

Invest in the Future By Investing in Education

Have you heard of a 529 Plan? This could be a highly advantageous option for those looking to help send a child, or grandchild to college. The 529 Plan is “A plan operated by a state or educational institution, with tax advantages and potentially other incentives to make it easier to save for college and…

Last Minute Shoppers, Uh Tax Planners

By Colin Grubb It is not too late to look at some strategies to reduce an individual’s income tax liability for 2013. Here are some ideas, though you may need to reach out to us for clarification: Fund your health savings account to the maximum. See the attached link for limits here. (This is not an endorsement for…

The 1099K conundrum and the importance of bookkeeping in 2012

It’s a known fact, more businesses are paying their bills with credit cards. Hence why the IRS has implemented the issuance of a 1099K by all credit card companies. You probably received one in 2011. Although it wasn’t as important then, it’s going to be important in 2012. We project that a majority of small…

Unpaid Debt

Debbie, a small business owner, faces a dilemma.  Although her daycare business is steady, she recently faced a revenue loss.  In the midst of moving, one of her clients neglected to pay her for one month of service totaling $1,200.  “I’m devastated.  Yes, business is good, but every nickel from my income is accounted for. …

Would you like to maximize your gift tax exclusion?

According to IRC $ 2503 (e) – Education and Medical Expenses, a donor can gift a sum of money to assist anyone for medical and educational purposes.  For 2011 the gift tax exclusion is $ 13,000. For example, if donor has 3 children, he or she can give ($13,000 * 3) = $ 39,000 per…