by Leif Jensen | Sep 7, 2021 | Running a Business |
Shoddy recordkeeping costs a tax preparer a large chunk of money. She can’t deduct her vehicle expenses, even though she used her personal car in her business. She claimed she drove 34,560 miles for business during the year, and she took the standard mileage...
by Leif Jensen | Aug 31, 2021 | Running a Business |
I have a client where I deal with the manager and not the owner. It is my understanding that the manager will eventually take over as owner, but after a number of years it had not happened just yet. The PPP forgiveness was a problem. The owner applied for the loans...
by Leif Jensen | Aug 2, 2021 | Running a Business |
Who thought this was a good idea? In this case they were treating its officers as contractors which was causing headaches for a corporation that owned and operated day care centers. The corporation didn’t pay any salary to a couple who were its sole shareholders and...
by Leif Jensen | Jul 12, 2021 | Running a Business |
Not paying salary to its owner causes headaches for an S corporation. A lawyer who was the president of her own S firm. The company did not pay her a salary but did provide her with funds, which the firm deducted as officer’s compensation on its Form 1120-S. She...
by Leif Jensen | Jul 6, 2021 | Running a Business |
Reporting hobby losses continues to be an audit red flag, it has been and will remain so. The IRS is always on the hunt for taxpayers who year after year report large losses from hobby-sounding activities on Schedule C of the 1040 to help offset other income, such as...
by Leif Jensen | Jun 29, 2021 | Running a Business |
Deducting race car expenses through a construction firm draws IRS scrutiny. A father and son owned an S corporation that built houses and developed real estate. The son enjoyed car racing, so the company purchased a race car body and parts for the son to restore and...
