Tax Deductible Expenses Archives - John R. Dundon II, Enrolled Agent

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Tax Deductible Expenses

Business Entity Selection and the Tax Consequences of Converting

13 Oct More on Marijuana Taxation: Beck v. Commissioner & Accounting for Excise Tax Paid – CCM 201531016

Posted at 00:00h in Business Expense, Marijuana, Tax Court, Tax Deductible Expenses, Tax Guidance & Preparation

UGH! I vowed to stop writing about the tax implications of marijuana cultivation and distribution. The catholic guilt of a dysfunctional adolescence must be burning deep today as resisting the urge to come back for yet another round of punishment is futile. So here goes ...

18 May Defining Small Employer with Regards to Offering Health Insurance

Posted at 00:00h in Affordable Care Act, Business Expense, Corporation, Employee Business Expense, ObamaCare, SHOP, Small Business, Sub-chapter S, Tax Credit, Tax Deductible Expenses

Many business owners of all sizes have been posting to this blog lately with concerns about offering minimum essential health insurance coverage for their employees. It is indeed a complex topic full of both pitfalls and opportunities. When you drill down into the nuances of what it really...

05 May Meal Expense – Navigating Between Internal Revenue Code Sections 162, 274, 132; IRS Technical Advice Memorandum 200030001; and, Churchill Downs v. Commissioner

Posted at 00:00h in Business Expense, Deductible Expense, Disallowed Expenses, Employee Business Expense, Meal Expense, Tax Court, Tax Deductible Expenses, Taxable Income, Uncertain Tax Position

As per usual I'm swimming in areas where the tax code is seemingly at odds. The latest matter across my desk regards meals and entertainment (M&E) expense. These are the two questions at hand: Specifically at what point does a meeting expense incurred under IRC section 162...

25 Apr Richard S. Leyh et ux. v. Commissioner – Contemporaneous Log Detailing Rental Property Activity Permissible in Defining Real Estate Professional for Income Tax Purposes

Posted at 00:00h in Rental Real Estate, Tax Court, Tax Deductible Expenses, Tax Guidance & Preparation

Richard S. Leyh et ux. v. Commissioner (T.C. Summ. Op. 2015-27) details a case in which a taxpayer could revise her contemporaneous log of daily rental property activity and qualify as a real estate professional for income tax reporting purposes. When the IRS audited the taxpayer's...

11 Mar Business Taxes Due Next Week – AVOID PENALIZATION – File An Automatic Extension Request TODAY – IRS Form 7004

Posted at 00:00h in Basis, Business Expense, Business Income, Colorado Department of Revenue, Corporation, Cost Basis, Extension, Partnership, Penalty, Sub-chapter S, Tax Deductible Expenses, Tax Guidance & Preparation, Taxable Income

The Business and Partnership Tax deadline is coming up fast! Don’t sweat it! File IRS Form 7004 to apply for Automatic Extension of Time to File Certain Business Income Tax. If you happen to be compelled, feel welcome to check out the instructions for IRS Form 7004. If you...

09 Jan Can You Establish a SEP Plan if you are a Sole Proprietor? What if that Sole Proprietorship Had Historically Passive Income?

Posted at 00:00h in Business Expense, Deductible Expense, Employee Business Expense, Employment Tax, Partnership, Passive Activity, Payroll Tax Problems, Self Employ, Sole Proprietor, Sub-chapter S, Tax Deductible Expenses, Unemployment

Regardless of their nature or topic matter, off beat questions are one of the spices of life. When it comes to the realm of taxation generally speaking the answers frequently distill down to - it depends. These two questions were asked of me on my last...

28 Dec 2014 Depreciation Limits on Luxury Autos: IRS Rev Proc 2014-21

Posted at 00:00h in Amortization, Depreciation, Self Employ, Small Business, Tax Deductible Expenses, Tax Guidance & Preparation

According to 26 U.S. Code § 280F - Limitation on depreciation for luxury automobiles the first year's depreciation expense for a newly procured vehicle should be prorated over the tax year based on the in service date not to exceed the limitations spelled out in IRS...

11 Dec Take Care Closing Down An LLC – IRC 752 – Treatment of Certain Liabilities

Posted at 00:00h in Accumulated Adjustment Account, Basis, Cost Basis, Limited Partnership, LLC, Partnership, Small Business, Tax Deductible Expenses, Uncertain Tax Position

A taxpayer reading one of my blog posts from Ishpeming, Michigan was compelled to call me today. She was a member in a Limited Liability Company (LLC) who had ultimately resigned herself to abandoning her interest in the LLC. In advance of the call she faxed...

IRS Form 1040 Schedule C: Profit or Loss from Business

15 Aug What is an FTE? What is a Seasonal Employee?

Posted at 00:00h in Affordable Care Act, Business Expense, Employee Business Expense, FTE, Medical Expenses, Medicare, Small Business, Sub-chapter S, Tax Credit, Tax Deductible Expenses, Tax Guidance & Preparation

What is an FTE? What is a Seasonal Employee?...

04 Aug Tax Considerations When Supporting Parents

Posted at 00:00h in Deductible Expense, Dependent, Family, Filing Status, Health Insurance, Tax Deductible Expenses, Tax Filing Status, Tax Guidance & Preparation

As I have been helping my Mom transition into life as a widow many interesting facts have begun to resonate. Particularly intriguing for me today under Regs. §1.2-2(b)(4) parent(s) can be claimed as a dependent if you meet the usual support, citizenship, gross income, and joint return...