Make year-end tax planning moves before it’s too late!
With the arrival of fall, it’s an ideal time to begin implementing strategies that could reduce your tax burden for both this year and next. One of the first planning steps is to ascertain whether you’ll take the standard deduction or itemize deductions for 2024. You may not itemize because of the high 2024 standard…
Read ArticleMaximizing Deductions for Small Business Owners: Key Strategies and Common Deductions
As a small business owner, maximizing your tax deductions can significantly reduce your taxable income, allowing you to reinvest more into your business. By understanding and utilizing common deductions such as office supplies, travel expenses, and professional services, you can enhance your financial health and operational efficiency. Here’s an overview of these deductions and how…
Read ArticleUnlocking Tax Benefits: The Advantages of Owning Your Business Property
For many business owners, the decision to purchase the building in which their business operates can be a strategic move with substantial financial benefits. Beyond the immediate advantage of having a stable and predictable location, owning your business property can offer a myriad of tax benefits that enhance your overall financial health. From depreciation deductions…
Read ArticleHandling Tips and Gratuities: Proper Reporting and Tax Treatment for Salon Owners and Staff
In the salon industry, tips and gratuities form a significant portion of the income for many professionals. Properly managing and reporting these tips is essential for compliance with tax laws and ensuring fair treatment of both salon owners and staff. This article provides an overview of the correct reporting and tax treatment of tips, offering guidance for salon owners and their employees.
Read ArticleThe Case of the Vanishing Hairspray: Why You Should Outsource Bookkeeping (and Save Your Salon)
By Sharon Moulder, Accounting Manager, Lightheart Sanders & Associates Imagine a world of bouncy curls, happy clients, and the sweet scent of success. Now, picture that same world turning upside down, drowning in receipts and financial woes. This, my friends, is the fictional story of Sarah, a talented hairstylist who dreamt of a thriving salon…
Read ArticleBooth Renters vs. Employees: Tax Implications in the Salon Industry
Navigating the tax landscape is crucial for salon professionals, whether you’re a booth renter or an employee. Understanding the distinctions in tax responsibilities between these two roles can help you manage your finances more effectively and avoid potential pitfalls. Here’s a breakdown of the key differences in tax implications for booth renters and salon employees….
Read ArticlePros and cons of turning your home into a rental
If you’re buying a new home, you may have thought about keeping your current home and renting it out. In March, average rents for one- and two-bedroom residences were $1,487 and $1,847, respectively, according to the latest Zumper National Rent Report. In some parts of the country, rents are much higher or lower than the…
Read ArticleThe tax deadline is almost here: File for an extension if you’re not ready
The April 15 tax filing deadline is right around the corner. However, you might not be ready to file. Sometimes, it’s not possible to gather your tax information by the due date. If you need more time, you should file for an extension on Form 4868. An extension will give you until October 15 to…
Read ArticleBeware of a stealth tax on Social Security benefits
Some people mistakenly believe that Social Security benefits are always free from federal income tax. Unfortunately, that’s often not the case. In fact, depending on how much overall income you have, up to 85% of your benefits could be hit with federal income tax.
Read ArticleTaking your spouse on a business trip? Can you write off the costs?
A recent report shows that post-pandemic global business travel is going strong. The market reached $665.3 billion in 2022 and is estimated to hit $928.4 billion by 2030, according to a report from Research and Markets. If you own your own company and travel for business, you may wonder whether you can deduct the costs of having…
Read ArticleFiling Jointly or Separately as a Married Couple: What’s the Difference?
When you file your tax return, a tax filing status must be chosen. This status is used to determine your standard deduction, tax rates, eligibility for certain tax breaks and your correct tax. The five filing statuses are: Single Married filing jointly, Married filing separately, Head of household, and Qualifying surviving spouse. If you’re married,…
Read ArticleAnswers to your tax season questions
Answers to your tax season questions The IRS announced it will open the 2024 income tax return filing season on January 29. That’s when the tax agency will begin accepting and processing 2023 tax year returns. Here are answers to seven tax season questions we receive at this time of year. 1.What are this year’s…
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