Category Archives: Business Taxes

Land vs Building

Today TaxMama hears from Tom in Pasadena, CA who tells us, “I am a hair stylist and I am going to start working exclusively out of my home. I will have 2 rooms of my townhouse used solely for business. When I take the depreciation for the business use of my home do I need […]

IRS Seeks New Issues for the Industry Issue Resolution Program

IR-2009-18, March 5, 2009 WASHINGTON — The Internal Revenue Service is encouraging business taxpayers, associations and other interested parties to submit to the Industry Issue Resolution (IIR) Program tax issues for resolution involving a controversy, a dispute or an unnecessary burden on business taxpayers. Though submissions can be made at anytime for consideration in the […]

2009 Annual SB/SE Customer Base Survey to Begin

The Small Business/Self-Employed (SB/SE) division of the IRS will begin conducting its annual telephone survey of taxpayers starting January 21, 2009 and running through mid-April, 2009. This survey is targeted to small business and self-employed taxpayers who file certain income tax forms, including: 1120, 1120A, 1120S, 1065 and 1040 with schedules C, E or F. […]

S Corporation Draw

Today TaxMama hears from VP in California who tells us. “I am VP of an S Corp. I do not draw a salary, but the president does. Does the dollar amount of owner’s draw affect taxes in any way?”

Sales Tax Deduction

Today TaxMama hears from Milton in Florida with this question. “I’m trying to gather all my General Sales Taxes together. I’m also liable for a Florida Power & Light Co. utility bill in which they itemize a cost to me from something called a Gross Receipts Tax. Can I lump this in with my state […]

Too Early for Forms

Today TaxMama hears from Sarah in Pennsylvania with this question. “I have a client who wants to close the business and file final 2008 returns. None of the forms are yet available on IRS website. How do I proceed to close the business?”

Reporting Tip Income

Today TaxMama hears from Danni in Florida who tells us “I am a hairdresser. What percentage of my tips am I required to report?” Dear Danni 100% – ALL OF YOUR TIPS! Why should you have to report less than all your income when every other working stiff has to report 100% of theirs? Whatever […]

Cost Segregation

Today TaxMama hears from Kim in Indiana who tells us. “My father is building a service center to do auto body repair work. The building is quite expensive. What kind of deductions can we get immediately? The accountant says that it will take 39 yrs to retrieve the money that he is investing. Are there […]

Reporting Auction Income and the Tax Gap

FS-2007-23, Courtesy of IRS Many people don’t realize the income they earn from auctions and consignment sales may be taxable. This fact sheet, the 16th in the Tax Gap series, will help taxpayers better understand what income they are required to report and what deductions they may be entitled to take. The tax gap, or […]

His and Her Businesses

Today TaxMama hears from Jason in Arizona who says “My wife and I both started businesses in 2007. My wife sells candles and I do accounting. I know since we do joint taxes that normally you can file your business taxes with our personal taxes. But how does it work when filing for two different […]