Schedule A
Itemized Deduction Taxpayers can use the higher of either the standard deduction or the itemized deduction. It’s worth the effort to compare the two methods because it can result in noticeably lower taxable income if you have enough qualifying expenses. Various types of deductible personal expenses can be itemized using Form 1040, Schedule A. Examples […]
The Additional Medicare Tax
The Affordable Care Act added the Additional Medicare Tax effective as of tax year 2013. This is a .9 percent tax on wages and self-employment income above a specific threshold. As of tax year 2021 these thresholds are: Filing Status Income Threshold Married filing jointly $250,000 Married filing separate $125,000 Single $200,000 Head of household […]
Wash Sale
Definition A wash sale has occurred if an investment is sold for a loss and is then replaced with the same or substantially identical investment within 30 days before or after the sale. Losses on a wash sale are disallowed. The loss is instead added to the cost basis of the new investment. See other […]
Getting Married
When you get married, your filing status will change from Single (usually) to Married Filing Jointly. This filing status change will take effect in the year you get married, so even a wedding in December can impact your taxes for the entire year. In some cases, effective tax rates are higher for married couples than […]
Tax Implications of Divorce
Divorce In the event you are faced with dissolution of marriage, it is important to understand the many tax implications of divorce. Couples will be required to divide assets, establish separate households, and will incur legal costs. Parents must determine custody and child support requirements. The tax law covers these situations. Legal Issues Legal Fees […]
A New Baby
Welcoming a new baby into your family is a huge occasion. This event thankfully comes with several tax benefits that can help with the cost of raising a family. First, however, plan to register your newborn for a social security number. It’s required for claiming your child as a dependent and accessing these tax benefits. […]
Bookkeeping for Small Businesses
Bookkeeping Bookkeeping for small businesses involves recording all transactions completed through the course of conducting business activities. If you use cash basis, this includes cash expenses and receipts. Accrual accounting will also include non-cash transactions such as accounts receivable and accounts payable. Properly recording your financial transactions helps you succeed in managing and growing your […]
Chart of Accounts
Chart of Accounts The Chart of Accounts is a list of all the accounts a company uses in its accounting system. Five categories of are generally used in the chart of accounts: Assets Liabilities Owner’s Equity Revenues Expenses These categories are then broken down into accounts into which the financial transactions are recorded. Many of […]
Compilation of Financial Statements
A Compilation of Financial Statements is a service engagement, limited in scope, in which an accountant assists company management in the presentation of the financial statements in accordance with the applicable financial reporting framework. Compilations do not include an audit or review. The accountant does not verify the accuracy or completeness of information provided by […]
Florida Tangible Personal Property Tax
Tangible Personal Property Tax The Florida Tangible Personal Property tax is due from the following types of property owners on personal property owned as of January 1: Sole proprietors Partnerships Corporations Self-employed agents or contractors Anyone who leases or rents property Tangible Personal Property (TPP) is moveable personal property (i.e. chattels), inventory held for lease, […]
