by Leif Jensen | Feb 13, 2019 | General |
LLC or S-Corp, these tend to be the options of choice by most small business operators. If consulting an attorney the choice is an LLC, if an accountant the preference is usually an S-Corp, or an LLC with an S-Corp election. If this is on the table I...
by Leif Jensen | Feb 12, 2019 | General |
I recently met with a prospective client who has started down the road of becoming an entrepreneur. While still working full time they have started working as a side consultant for a business. They will be paid on a 1099-M and they will be reporting their income...
by Leif Jensen | Feb 11, 2019 | General |
I have a client who decided to be more than an entrepreneur. He decided to open three businesses simultaneously, so is now a multipreneur. Granted, the three businesses are all tied together so there is some vertical integration, but each is a standalone...
by Leif Jensen | Feb 6, 2019 | General |
There has been a lot of talk over the year about the benefits of vertical integration and synergy within businesses. But, when confronted with it suddenly and from an unexpected source, it is a wonder. Whenever I have the opportunity to get food from EL Milagro I do...
by Leif Jensen | Feb 5, 2019 | General |
We have a multiple clients who had made the switch from one version of QuickBooks (QB) to another. Two were using QB online and switched back to a desktop version and two others used the Apple version and went to PC desktop. The online people are very happy with...
by Leif Jensen | Feb 4, 2019 | General |
Do you have a data backup policy to ensure your business continuity in the event of a disaster, error or computer failure? Even with a backup system and plan in place, I once lost data that needed to be recreated several years ago. I remember how much fun...
by Leif Jensen | Jan 30, 2019 | General |
Many companies collect personal information from their customers, including names, addresses, and phone numbers; bank and credit card account numbers; income and credit histories; and Social Security numbers. The Gramm-Leach-Bliley (GLB) Act requires companies defined...
by Leif Jensen | Jan 29, 2019 | General |
The IRS has the following suggestions and following steps to help protect businesses from identity theft. Respond to questions prompted by software to provide additional information to help verify the legitimacy of the tax return. These questions include the...
by Leif Jensen | Jan 28, 2019 | General |
Surprise small businesses are also at risk for identity theft. Businesses and their employees can and have had their identities stolen and their personal information used to open credit card accounts or file fraudulent tax returns to obtain false refunds. In the past...
by Leif Jensen | Jan 23, 2019 | General |
Traders are those who approach trading investment property as a full-time business: rather than as a hobby and generally receive their primary income from their trading activities. Their trades are frequent, regular, continuous, and substantial. They trade solely for...
by Leif Jensen | Jan 22, 2019 | General |
In 2014 the IRS issued Notice 2014-21 to provide guidance and some basic tax principles concerning virtual currency (i.e. Bitcoin, Litecoin, Monero, Dogecoin,NEM, etc.). The notice establishes that virtual currency is to be treated as property. So as property, the tax...
by Leif Jensen | Jan 21, 2019 | General |
I was on a webinar recently and one of the slides showed that a mere 1% of “things” that could be connected to the internet currently are. So apparently “we” are not moving as fast as originally anticipated in embracing the “IOT”. But the presentation did state that...
by Leif Jensen | Jan 16, 2019 | General |
A few years ago I met and individual who was a guest at a networking event. He was a definite self-promoter always looking for the next way to make money. At the meeting we were seated together and at some point he turned to me and asked why I was there? Before I...
by Leif Jensen | Jan 15, 2019 | General |
There was a large subgroup of people who were able to itemize and deduct Miscellaneous Itemized deduction on their Schedule A after the expenses surpassed 2% of Adjusted Gross Income (AGI). All of these expenses were eliminated as deductible under the new tax law. A...
by Leif Jensen | Jan 14, 2019 | General |
Home equity line of credit (HELOC) is indebtedness defined as indebtedness other than acquisition indebtedness secured by a qualified residence. Meaning is does not include the original primary mortgage on your principal residence. According to the new tax law for the...
by Leif Jensen | Jan 9, 2019 | General |
Under the new tax law (TCJA) the reporting of alimony paid as a deduction from income on the 1040 has been eliminated. In conjunction payments for alimony or separate payments received are no longer required for inclusion of income on the recipient’s income tax...
by Leif Jensen | Jan 8, 2019 | General |
Head of Household (HOH) is an option for a filing status for those who have a dependent child(ren). In prior years this status was not under fire, as the Earned Income credit, Child Tax credit or the American opportunity credit. This has changed in tax year 2018. Now...
by Leif Jensen | Jan 7, 2019 | General |
The basics framework for financial compliance is a company’s recordkeeping or bookkeeping. Over my career I have been fascinated and surprised by how this is accomplished or not by some companies. We work with a multitude of different clients in a number of...
by Leif Jensen | Dec 19, 2018 | General |
Under the recent tax reform law the ability to deduct hobby expenses on Schedule A have been eliminated. But the necessity of reporting Hobby Income is still required. A client was sharing that someone they knew was selling product on Etsy and Craigslist(?) and was...
by Leif Jensen | Dec 18, 2018 | General |
While the IRS has streamlined the approval process for a Form 1023-EZ the forms need to be filled out with the intent of compliance. Some small groups that filed Form 1023-EZ are getting additional IRS scrutiny. To file Form 1023-EX the charities have to meet the...
