The legislature just passed several new tax provisions and increases. Make sure you are preparing for these!
Unfortunately Microsoft doesn’t pay us to say this, but one of the easiest ways to track business mileage is MileIQ. There are several other great apps for this, but did you know that MileIQ was included with a many of the Office 365 Subscription plans? Way easier than paper, and you can classify your mileage in just minutes each week.
It’s a new year! If you are looking for a new tax advisor, need some help with 2018’s bookkeeping, or want some consulting to help make 2019 better than 2018. January is a great time to firm up those relationships!
We would love to hear from you!
Is it ordinary and necessary? The IRS hasn’t issued a comprehensive list specifying what is deductible. The general rule is that if the expenditure ordinary and necessary and not addressed in some other context it is an acceptable business deduction.
Some specific limitations, reductions, and non-deductible expenses do exist so if something seems questionable, talk to your CPA.
Here are a few costs asked about frequently:
- Business Insurance
- Mileage or Actual Expenses (ask your accountant)
- Business Meals (50% Deductible)
- Business Travel (with some rules)
- Website Costs
- Business Assets (stuff you aren’t reselling and plan to use for more than 1 year – computers, cameras, equipment etc. via depreciation)
- Software Subscriptions
- Business Insurance
- Office Supplies
- Small Tools
- Client Gifts (Up to $25…worth a discussion with your advisor)
- Office or Business Rent
- Bridge Tolls
- Non-Uniform Clothing (sorry no suits, ties, dress shoes, dresses, etc. even if it is to “look nice for client meetings”).
- Life Insurance
- Entertainment (Thanks TCJA…)
- Sporting Event Tickets
- Fishing Trips
- Vacation Travel
- Traffic Tickets
- Club Dues
- Commuting Costs
All the effort and cost you put into doing your accounting is a valuable resource for your business. If you aren’t already, let us help you use your numbers to:
- Forecast or Budget
- Calculate Markup
- Estimate / Bid Better
- Track Progress Toward Goals
- Increase Profits
- Reduce Costs
- Increase Revenue
- Plan & Predict Taxes
We use virtual meetings regularly. Some tasks, training, & topics actually work better virtually. This type of structure can save drive time or allow us to work with clients easily who may be across the country.
Most of these tips have become part of our regular operations already, maybe they could improve the way you work?
A quick read about how the IRS proposed regs apply to rentals and the specified service trades. Take a read and talk to your CPA to see if it is worth adjusting anything before year end.
- Business Meals are now 50% deductible
- Examples include: meals, coffee, drinks with prospective clients, existing clients, suppliers, etc. (more detail here)
- Business Entertainment is now non-deductible
- Examples include: sporting event tickets, sporting event boxes, concerts, go-karting, laser tag, etc.
Don’t worry! Even though this podcast was done by the Journal of Accountancy it is not accounting specific and I can almost guarantee you won’t glaze over. John Garrett articulates this concept so well. It is absolutely worth your 30 minutes, to listen use the link below or find the episode on iTunes here.