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Monthly Newsletter Office in the Home

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  What is an office in the home? When you use an area of your home exclusively as a main place of conducting business and the purpose of using the space is to generate income, you can deduct the expenses to have and maintain that area as your business office. The area doesn't have to be enclosed by walls but it should have some recognizable boundaries and used "exclusively" for business and nothing but business. You can also include storage areas of your home for supplies as additional office space. Can you have more than one office? Yes, but the office in your home must be the main location for meeting clients, preparing your work and conducting business. Revenue you generate must be identifiable to the office in the home location, even if it is only a portion of your gross revenues. How do you determine the deductions? You must first calculate the square footage of the office space. Then you must calculate the total square footage of your home. The allocation ...
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S Corporations

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  Monthly Newsletter Some helpful insight - A monthly newsletter form Robert Reinert Consulting   “S” Corporations What is an "S" Corporation? When you establish your business operations you must consider what legal structure your business will be. Considerations should include: limited liability from law suits of customers and associates, limiting the amount of taxes you pay on business income, and how you define the allocation of ownership and allocation of profits. An "S" corporation provides the best answer to all of these questions for a small business owner because it provides limited liability of a corporation, it saves owners from double taxation as is the case with a regular "C" corporation, and it allows ownership and profit allocation through the issuance of stock. What is the advantage from other structures? "S" corporations do file tax returns but do not pay income tax. The taxes are assessed on the owners' share of the profits a...
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Newsletter Tax Planning

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  Monthly Newsletter Some helpful insight - A monthly newsletter form Robert Reinert Consulting Tax Planning Why is tax planning in August important? Time and Timing:     Time: You have  five  months to organize and plan what you are going to need to do to save taxes and avoid p enalties when you establish your tax strategies in August.   Timing: August is not that far from the last year's filing deadline. This makes it a bit easier to recall what you did last year, some of the things you may need to improve on to gain additional deductions, or things you can avoid doing to eliminate penalties this year. Also, if you have a b usiness, seven months of activity have past and those results provide a good picture of what the year may look like in terms of revenue and expenses.   Tax planning is as important as tax filing! Tax filings are the final result of what you did in terms of taxable revenue and deductible expenses. Simply sorting out what you d...
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