Is it a Business or a Hobby? 9 Questions to Ask

The IRS takes the distinction very seriously. Many small businesses start out as casual pastimes. You help troubleshoot your friends’ computer problems in your spare time, and they start telling their friends and business contacts about you. Or you use your woodworking skills to build furniture for non-profit organizations or your sewing skills to make one-of-a-kind dolls for the neighbor …

Natural Disaster Can Affect Your Taxes: Here’s How

Welcome to hurricane season!  A natural disaster such as Hurricanes can cause quite a bit of damage not only to vacation homes, but also to the primary  residences of people who live in areas affected by hurricanes. In 2005, Hurricane Katrina caused more than $125 million in damage. However, hurricanes are not the only causes of natural disasters.  Quite a …

8 Things You Should Know About IRS Audits

IRS AUDITS…Yes, the words strikes fear in every taxpayer’s heart. Here are the basics. You may know someone who’s been through an IRS audit. You’ve at least heard that it can be a grueling, complex process. But how much do you really know about this potentially-unpleasant procedure? Here’s some of what every business owner should know. What is an IRS …

Striking Out on Your Own in 2014? Your New Tax Obligations

Many newly self-employed individuals get quite a shock when they start planning for income taxes. Here’s what you need to know. You probably remember your surprise when you got your first paycheck from your first job in high school or college. Who is this FICA?, you may have thought, and where is all of my money going? Taxes and other …

Preparing for Tax Prep: 5 Tips

Prepare for preparation? Yes, it’s more than a good idea. It can have significant impact on your tax obligation. You know how onerous tax preparation itself can be. So you probably don’t like to even think about it until those deadlines loom. But some planning and preparation done throughout the year can make it easier to face the IRS’ intimidating …

What is the form 1099-K?

1) 1099-MISC: Basically all companies are required to send anyone that you paid services to that total over $600 for the year, a 1099-Misc. This can be your cleaning service, yard service, tax service, lawyers, building repairs, casual labor. Those that you paid with cash/check, you still need to prepare a 1099-MISC. 2) 1099-K: If you paid any of these individuals …