Tax Changes: Meals & Entertainment

July 23rd, 2018

If you’re anything like the majority of Americans, you’ve heard mumbles of tax reform that was pushed through Congress at the tail end of 2017. Now that 2018 is halfway gone, those mumbles will steadily increase in volume until they grow to be raucous roars, signaling the dreaded arrival of tax season 2019. We get it. Tax law is no one’s idea of recreational reading. Even if you bravely attempt to wade into the ocean of information that is available online, neutral sources are hard to find, and easy to understand explanations are even tougher to come by. That’s where we come in.

Our goal is not only to prepare you for the impending tax season, (Yes, we know it’s July but trust us, a little planning now will go a long way come April 15th.) but also to inform you regarding how the Tax Cuts and Jobs Act affects you, the taxpayer. We will roll out bite-sized articles concerning relevant changes that resulted from the TCJA and explain how these changes could potentially affect your overall tax situation. So, sit back and yes, relax because amidst the sea of mumbles comes some much needed clarity.
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Small Contractors Mean Big Bucks To the IRS

June 23rd, 2017

The economy is getting stronger, and construction job growth is on the rise, according to news from the Associated Builders and Contractors (ABC), published on June 2, 2017. Small construction companies are sprouting like new apple trees, and tax agencies just love that kind of low-hanging fruit. Easy pickins mean easy tax revenue.

Don’t let your small—or even your larger—construction company fall to the grim reaper! Avoid common mistakes, take a little extra time and care with your record-keeping, and you’ll harvest profits, while paying only the required taxes, and avoiding IRS and other tax agency audits.

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Registering a business in the U.S. may not be as simple as many believe

April 19th, 2017

Many people confuse the complexity of the U.S. Tax Code as it relates to business with the simplicity of a company registration in the United States. It takes less than an hour with some states to register, but it may cost thousands per year in missed tax benefits if proper taxation was not considered. According to Bloomberg, 8 out of 10 businesses fail in the first 18 months. However, those 2 that survive will have to pay taxes. Being thoughtful of tax risks from the get-go will help you lay out the foundation for future growth and save a lot of money for the company and its owners.

Continue reading Registering a business in the U.S. may not be as simple as many believe

10 action items to address with your future accountant before making a commitment

April 19th, 2017

As you try to make sure your accountant meets your requirements and passes the usual test on education, experience, specialization, her value proposition, response time, price levels and the work process, it comes down to understanding of whether your accountant will be able to handle the depth and the width of your business requirements for financial management and tax planning.

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Tax Deductions for the Self Employed – The Uber Way

November 17th, 2015

In today’s economy, many individuals are deciding to take more control of their work-lives and have become self-employed business owners and contractors. Visionary companies like Uber and Lyft have helped shift the paradigm away from regular wage-employee arrangements, in which you receive a W-2 tax statement, to contractor/consultant status with Form 1099 tax reporting. As a self-employed person, you are responsible for your estimated tax payments, but you benefit from a whole range of tax deductions not available to employees. These include:

  • Meals on the job
  • Home office expenses
  • Health and long-term-care insurance premium deductions
  • Transportation costs
  • Equipment and supplies
  • Professional/educational expenses and fees
  • Access to a Solo 401K
  • Depreciation

and more.
Let’s review the requirements for qualifying as a self-employed person, and then explore in detail the first 3 deductions listed above.

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Uber and Lyft Ridesharing – Choice of a Perfect Sedan

October 29th, 2015

If you own a car and love to drive, then one of the most lucrative business prospects today is being a self-employed ride-share driver. The two ride-sharing giants, Uber and Lyft have been the bitterest of competitors when it comes to providing top notch facilities, customer experience and ease of use.

Make My Day CPA has been assisting Fedex and medical transportation companies and now, Uber and Lyft drivers become more cost- and tax-efficient businesses. Thus, Make My Day CPA did its own investigation into economy of employing the right type of car for taxi cab by examining the cost of purchase, depreciation, warranties, fuel economy, repairs, reliability and safety ratings that affect insurance premiums. At the end of the day, the vehicle maintenance and the gas are the highest expenses that shape out the feasibility of this business.

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