Category Archives: Small Business

Small Businesses Benefit from 2008 Economic Stimulus Act Depreciation Provisions

Courtesy of John Berger at the Internal Revenue Service Businesses that have bought assets – or are planning to do so – in 2008 can benefit from the same legislation that is delivering payments to individuals this year. The Economic Stimulus Act of 2008 increased the maximum amount for depreciation under section 179 of the […]

Sole Proprietor

Today TaxMama hears from Kathy in Florida who tells us. “My husband currently works “under the table”. We declare his total income and are subsequently hit every year with owed taxes. Would it behoove us to make him a sole proprietor of his own yacht cleaning business? Would we be saving on taxes, or would […]

The LLC Advantage

Today TaxMama hears from Roy in Virginia, who wants to know. “Is there any advantage to form an LLC for my speaking and consulting. I am an employed physician and heard there may be a tax advantage of forming an LLC.”

Tax Challenges of Business Income

Courtesy of IRS – FS-2008-20, April 2008 WASHINGTON—Internal Revenue Service research indicates that understated business income contributes significantly to the tax gap, with the majority understated by small businesses. To assist small business and self-employed taxpayers better understand their reporting obligations, this fact sheet addresses the issue of income and how to determine gross income. […]

Out of Work

Today TaxMama hears from Andre in Houston, who tells us. “I read your article on Marketwatch with interest. I am out of work right now, about to give up looking for work, but was wondering about some of the home business opportunities you mention in your article. Most of the “opportunities” I’ve come across are […]

Trucking Along

Today TaxMama hears from Jim in Los Angeles, who tells us. “I run a trucking business. This will be my first year hiring contractor drivers so I want to know, at the end of the year when I give them a 1099 am I supposed to send one to the IRS with my corporate tax […]

Ticket to the Future

Today TaxMama hears from Kevin in Florida with this interesting idea. “I need advice setting up a corporation (or partnership, LLC, etc…). The question is which one? I, and 3 good friends want to incorporate ourselves to form a business for the sole purpose of purchasing season tickets under one name. The advantage – with […]

Hobby or Business…or Personal?

Today TaxMama hears from Lisa in California who tells us. “I am a Creative Memories Consultant, which is an independent consultant home sales business. This past year I barely sold anything, and ran my ‘’business’’ as more of a hobby than a business. Do I still need to claim it on my taxes? I haven’t […]

New Business – Deductions

Today TaxMama hears from Peg in New Mexico, who tells us, “I am into my small business online for approximately $12,000 (began in Mar ‘07) and have no income from it as yet. Am I able to deduct my business expenses from my total income to arrive at a total adjusted income? I am lost […]

Should I Report Income?

Today TaxMama hears from Michelle in Pennsylvania, who has this dilemma, “My husband was working and receiving $300 a week for 7 weeks. He was paid with a personal check. Do we claim that? Because his boss will not be claiming him, I was not sure. Some people told me no; some people told me […]

e-News for Small Business

[Courtesy of Internal Revenue Service] “The IRS has started a new service, e-News for Small Business. Distributed every other Wednesday, it brings timely, useful tax information right to your computer, including, but not limited to: Important, upcoming tax dates What’s new on the IRS Web site Reminders and tips to assist businesses with tax compliance […]