Can I itemize deductions on my tax return?
You may wonder if you can claim itemized deductions on your tax return. Perhaps you made charitable contributions and were told in the past they couldn’t be claimed because you didn’t have enough deductions to itemize. How much do you need? You can itemize deductions if the total of your allowable itemized write-offs for the…
Read ArticleThe standard business mileage rate increased in 2025
The nationwide price of gas is slightly higher than it was a year ago and the 2025 optional standard mileage rate used to calculate the deductible cost of operating an automobile for business has also gone up. The IRS recently announced that the 2025 cents-per-mile rate for the business use of a car, van, pickup…
Read ArticleUnderstanding 1099 Forms for Small Businesses: A Complete Guide
As a small business owner, managing finances and staying compliant with tax regulations is crucial. One essential part of this is understanding and properly handling IRS 1099 forms, which are commonly used for reporting income paid to contractors, freelancers, and other non-employees. In this guide, we’ll go over the basics of 1099s to help you…
Read ArticleWhy Keeping Personal and Business Expenses Separate Is Crucial for Your Success
Why Keeping Personal and Business Expenses Separate Is Crucial for Your Success As an entrepreneur or small business owner, managing your finances can be overwhelming, but one principle can make a world of difference: separating your personal and business expenses. While it may seem like a minor detail, keeping these accounts distinct is vital…
Read ArticleMake 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 Article