For large businesses and small businesses alike, tax problems present themselves each year for a variety of reasons. There are many precautions that your business can take to avoid certain tax problems, but without professional tax services, it can be difficult to stay on top of every potential problem. Today, LongSchaefer wants to help your business avoid these problems. In this blog post, we’ll evaluate three common tax problems faced by businesses.
Failure to Track Deductible Expenses
For businesses that do not utilize expense accounts, it’s crucial that you are keeping track of all of your deductible expenses. Failing to keep track of deductible expenses is a common tax problem for businesses that don’t have a specific credit card or banking account for expenses. Failing to keep track of these expenses means that you are likely missing out on tax savings. Make sure to keep all your receipts to avoid the need for professional tax services.
Few things are more stressful for a business than receiving an audit letter from the IRS. There are several red flags that might get your business audited, including year-over-year net losses, consistent late filings, and salaries that are higher than usual for your industry. Audits take significant time and energy, as you gather documents and records to substantiate items on your tax return. The IRS is thorough and isn’t going to let you off easy, so it’s important to have proper representation if faced with this tax problem. At LongSchaefer, we offer IRS audit representation that will help save your business time and money during the audit process.
There aren’t many things worse in the eyes of the IRS than failing to pay your payroll taxes. A significant portion of payroll taxes are your employees’ withholdings, which immediately puts the IRS on guard. The penalties that come with failing to pay your payroll taxes are often more severe than other tax problems, so you shouldn’t take payroll taxes for granted. If you are behind on these taxes, you will want to make it a priority for your business and avoid the IRS knocking on your door.
Contact LongSchaefer for Tax Services
If your business is facing a tax problem, whether it’s an audit, payroll taxes, or another issue altogether, LongSchaefer tax services can help. For more information on the tax services we can provide for your business, get in touch with us at (513) 245-0300 or contact us online today.
During the Christmas season, you are going to be spending money early and often on gifts for family and friends. It can be easy to lose track of how much you are spending, especially without a set budget. During the hectic holidays, many people overlook the tax implications of the holiday season. In today’s blog post, LongSchaefer offers a few tax planning tips for the holiday season.
Don’t Lose Track of Your Receipts
It’s important to keep track of your receipts all year round, but it’s especially true during the holidays. When tax season hits, you’ll want to have all of your receipts for deductible expenses, and that includes holiday receipts. Make sure to keep all of your holiday-related receipts, including gifts, childcare expenditures, and travel expenses. Whether you are filing your taxes or returning a gift, saving your receipts will pay off.
Don’t Forget Child and Dependent Care Tax Credits
One of the most common headaches during the holiday season is childcare over winter vacation from school. While the adults of the home are still working, children are out of school, many needing some sort of childcare. If you have to hire a babysitter or send your kids to winter camp, you might be eligible for child and dependent care tax credits. In fact, you could be eligible for up to $2,100 in tax credits for your childcare.
Consider When to Payout Your Holiday Bonus
If you are expecting a holiday bonus from your employer in the coming weeks, you might want to consider waiting until 2020 to cash it out. For a bonus that comes with a significant payout, it could actually bump you into the next tax bracket. When working through your tax planning for 2020, it might benefit you to defer your bonus to 2020 so that it doesn’t impact your 2019 tax return. If you don’t immediately need the extra income, it might serve your family best to wait.
Contact LongSchaefer for Tax Planning
As we head into 2020, tax season will be upon us in no time. If you are looking for tax planning help in 2020, give LongSchaefer a call at (513) 245-0300 or contact us online today.
Tax Planning: Charities and Tax Deductions
It’s the season of giving, and now is a great time for you to become involved with your favorite charity. Making donations can help you to score some additional tax deductions. In this blog, LongSchaefer explains how you can give and get a bit more this tax season.
Rules of Charitable Deductions
The following rules act as a quick-guide that will allow you to understand some specifics of how to claim your charitable contributions.
- Know where to claim- Your claims will all be made on Schedule A of Form 1040.
- If you claim it, donate it– Do not try to fudge your donations. If you didn’t donate it, do not try to say that you did.
- Record your donations- If you are donating, make sure that you keep track of where you have donated, when you donated, and the amount you gave. Bank statements can help you to prove your donations.
- Non-cash? No problem. Make a list of your donations, carefully noting the condition of the items and the value of those items. Many charities provide valuation guides on their websites.
- Picture? Perfect!- Take pictures of the items you donate so you can show they are in good condition. It also shows how much you have donated.
- Know Your Limits- If you’re donating to a political party campaign, you cannot deduct that. You cannot deduct gifts or contributions to for-profit businesses.
Contact LongSchaefer Today
Still not sure of all the nuances related to charity deductions, or deductions in general? Connect with the professionals at LongSchaefer today. We have worked diligently with the Cincinnati, OH, community since 1981. We believe in providing affordable tax and business services to our customers. Contact us online today, or call us at (513) 854-0217.
Tax Implications of Buying a Car
If you’re buying a car, you should be aware of what it could mean for your taxes. Planning for your taxes is the best way to prevent unwanted surprises and make sure you’re prepared for anything. Today in the LongSchaefer blog, we’ll talk about how buying or leasing a car will affect your taxes.
The sales tax you pay on your car will be your biggest consideration. When you buy or lease a car, you will have to pay the sales tax when you go to get it registered. This is an expense that many first-time car buyers may not be aware of. Make sure you have enough money set aside when you buy or lease a new car to pay your sales tax as well.
Fortunately, the nice thing about sales tax on a car is you can claim it on your yearly taxes as a deduction. You should be able to claim both your sales tax and your registration fees. If you want these deductions available the next time you file your taxes, you may want to go ahead and get that car you’ve been looking at before December 31st. Waiting until after means you’ll have to claim your deductions on next year’s taxes instead, meaning the benefits aren’t as immediate.
Don’t forget you’ll need to pay your property taxes. Many states assess property tax on vehicles, so you’ll need to make sure to update your form to send into your assessor. You can remove any old cars off the form and add your new car. Forgetting to do this means they may not get an accurate assessment, and your property tax payment will be delayed.
If you buy or lease a car for your business, or if you’re self-employed, you may be able to write off operating costs of the vehicle. This could include gas, repairs, and more. This is something you’ll want to run by a tax advisor because this can get fairly complicated. Luckily, you can always bring your taxes to the advisors at LongSchaefer. We’ll be happy to help you with your taxes, no matter how complicated they might be.
Contact LongSchaefer Today
The professionals on our team are here for you. Your taxes are our first priority and we have been offering experienced service in the Cincinnati, OH, area since 1981. We have won several awards for our services, and we would love to offer that same award-winning expertise to you. Call (513) 854-0217, or contact us online today.