Inventory/ Cost of Goods Sold

Inventory/ Cost of Goods Sold

Inventory An inventory is necessary to clearly show income when the production, purchase, or sale of merchandise is an income-producing factor. If a taxpayer must account for an inventory, the accrual method of accounting must be used for purchases and sales, unless...
Be Aware of Tax Issues While Working Abroad

Be Aware of Tax Issues While Working Abroad

Here are three quick things to know about working abroad. Issue 1: Section 199A To qualify for the Section 199A deduction, your business income must be effectively connected with the conduct of a trade or business within the United States. The preamble to the proposed...
Household Employees

Household Employees

Household Employees If you have a household employee, you may need to withhold and pay Social Security and Medicare taxes(FICA), pay federal unemployment tax (FUTA), or both. Workers Who Are Household Employees A household employee is an employee hired to perform work...
How Corporations Reduce IRS Audits of Home-Office Deductions

How Corporations Reduce IRS Audits of Home-Office Deductions

If you filed your business income and expenses as a proprietor in 2017 and reported $100,000 or more in gross receipts, your chances of IRS audit were 2.4 percent (2017 returns are still open for audit, so the percentage could increase). Had you reported this income...
Take Advantage of the 199A Deduction for 2019

Take Advantage of the 199A Deduction for 2019

Take Advantage of the 199A Deduction for 2019 If you operate your business as a pass-through entity, such as a proprietorship, partnership, or S corporation, the profits of that business can generate the Section 199A tax deduction. No-Problem Businesses You qualify...