Real Estate Professional?

Making infrequent sales of real estate costs a taxpayer an ordinary loss. The seller, who was a real estate pro, first sought to develop land he owned. But after the development activities stalled and did not progress beyond the planning stage, he had put the land in...

C Corporation losses

Surprise two tax payer find that taking your C Corporation’s losses on your individual return is a no-no. Two brothers who were the sole shareholders in a regular C Corporation which operated a cattle business deducted the firm’s losses on their 1040 returns. The...

Free Tax Filing

Individuals can e-file their federal returns at no cost, no matter their income, directly with the IRS. The Service has two options. If your 2017 adjusted gross income was $66,000 or less, you can prepare and e-file your return with no charge by going to...

Banks

I have a few clients with banking issues… One client’s bank is holding cash for 48 hours regardless of where the money is coming from, even another account at the bank.  Think about it, you move money from one account to another on the banks website and can’t touch...

Corporate books and records

Years ago you incorporated your business.  Did you get the binder package for your corporate books and records? Hopefully your answer is yes and that you have been having your at least annual meetings and maintaining your books and records (B&R). But If I had to...

Learning

As a licensed CPA, I am required to obtain 120 hours of Continuing Professional Education (CPE).  Four of those hours also have to be in ethics. Beyond the ethics, the CPE can be on almost any topic.  The ICPAS had a program before their Accounting and Finance Show...

Domains

In today’s world you need to be able to control your domain.  I know that there are those who believe that a Facebook page is more important to your business than a domain.  I personally disagree with that. A Facebook page defiantly has its place in your marketing,...

Websites

I have a couple of clients who decided to design and build their own website.  Now they are not the typical creative type.  But the results are interesting. They both used website template was provided by their hosting company.  They dropped in the images and text....

Spousal Help/Interference

Occasionally I will get a rogue e-mail from the spouse of a client.  I am usually taken aback by this.  Since most if not all communication typically comes from the client running the business. Now, I have suggested that potential client not move forward with their...

Ziosk

As many of you are well aware several restaurant chains have Ziosk devices on their tables. I have to say I am not a fan.  I don’t want to play a game if I am with someone.  I like to have wait staff employed at restaurants and places I frequent. Also, most of the...

Charitable Contributions

We have a client that came to us with a problem.  They had done their own taxes for 2014 and 2015. They were Turbo-Tax users.  In 2014 they had made an extraordinary contribution to their church, but because of their use of Turbo-tax, the software defaulted to the...

Lack of options

My wife and I were thinking of seeing the movie “Darkest Hour” but it was not playing at an AMC theater.  We are surrounded by AMC theaters only (Niles, Mt Prospect, Rosemont, and Schaumburg). Never mind that I resent coughing up money to China to see a US film; but...

Investing

Is it true that the biggest reason for wealth inequality in the U.S. is that many Americans are uninformed about investing? Granted research has shown that the pre-tax income for the bottom 50% of earners in the U.S. has dropped since the 1980’s. And a full 36% of...

Beware

You always need to be sure whom you do business with as the details of this court case show.  Of you have partners have an operating agreement even in an S-Corp. A locked-out shareholder has to report her share of S corporation income on here individual return. A...

Not a Hobby

If you have a side business, there are things you should be doing to ensure that the business is not a hobby. A ranching operation that lost millions is not a hobby, according to the Tax Court. A man who ran the venture in addition to his day job as an economist is...

Reimbursed Medical Insurance

Huzzah!  Small employers get guidance on health reimbursement arrangements. A 2017 law lets eligible firms, defined as those with fewer than 50 employees that don’t offer group health insurance,  to reimburse workers for health insurance and medical expenses if they...

Passive or active marketing

When I meet with clients, I like to take a holistic approach to their business. Yes, we review their Financial Dashboard: reviewing the various metrics, as well as the prior year comparisons and industry comparisons if pertinent. But I also spend time discussing...

Why target small/medium businesses for a cyber-attack?

Barkly.com in 2017 shared the following information on small business cyber-attacks. Small to medium sized businesses typically pay the ransomware for the release of their data. The average ransom demand was $1,077 22% of the businesses that experienced the ransomware...

Unemployed and the ACA

We had a call come in from someone we did not know.  They were unemployed for over a year, but received health insurance from the ACA exchange.  They were getting the subsidy and did not want to have to pay it back. So they were looking for ways to show income without...

Industry Cyber Targets

I was at a seminar and during it the Symantec 2017 survey of “Industry Cyber Targets” was shared. This is the top 10 sectors breached by the number of incidents; the data was based upon 2016 occurrences. Rank Industry Breaches Percentage 1 Services 452 44.2% 2...

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