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Art Professor Deducts Business Loss on Artwork, Court Says OK

By Jason Watson (Google+)   Many professional artists, who create and sell artwork, generate their primary source of income from other activities. Ms. Crile, an artist who has earned $16,000 per year from selling artwork, generated a substantial amount of her income by teaching art at Hunter College. She has been a very successful artist…

QuickBooks Examinations – The Doom of Many a Taxpayer

By Watson CPA Group (Google+) Posted September 26, 2014   IRS examinations are a joyous occasion for all! Yes, we are being sarcastic. But, if you use QuickBooks or other accounting software and are being examined by the IRS, we have some helpful tips.   Information IRS Can Request The IRS is allowed to request…

5 Things Successful Freelancers Understand

By Jason Watson (Google+) Posted September 22, 2014   Are you a freelancer? Perhaps you are a consultant, independent interior designer, or run another small business that performs temporary or project-based work. Then you are one of 53 million Americans who derive part or all of their income from freelance jobs.   Below are some…

New Net Investment Income Tax: Brace Yourselves, S Corporations Owners

By Watson CPA Group (Google+)   The new Net Investment Income Tax, or Section 1411 Tax, takes effect for the 2014 tax year. It is a 3.8% tax on the lesser of an individual’s net investment income (NII), or the excess of the taxpayer’s modified adjusted gross income over certain NIIT thresholds.   Net investment…

When to Recognize Tax on Gift Card Income

By Watson CPA Group (Google+)   Previously, gift card income had the burden of being taxable on the sale of the gift card. Let’s say that you purchased a Starbucks gift card, gave it to your sister during the winter Holidays, and she then went to buy her latte in January. Starbucks recognized the income…

Bonus Depreciation: Tax Court rules again that just using an asset is not enough

By Jason Watson (Google+)   In the effort to stimulate the economy, tax incentives are offered to businesses that purchase and begin using a new asset during the year.   While various depreciation deductions can save taxpayers a substantial amount of money, it is important to be sure you check with the requirements and make…

HSA Remedy to Obamacare for Employers

By Watson CPA Group (Google+) By now, many employers are suffering from the oncoming malady-  health coverage of employees. It’s an unavoidable affliction for small businesses wanting to provide employees health insurance under the Affordable Care Act (Obamacare). If you’re one of the millions of employers without a remedy, the HSA might just be your…

Music Maker Conquers Hobby Loss Rules

By Watson CPA Group (Google+) Thomas A. Gullion started his music business with one goal in mind. Turning his musical talent into a money making business. Yet, after seven unsuccessful years, he wasn’t ready to give up. The IRS however, alleged the business was a hobby, disallowing years of tax deductible losses.   Tax laws…

IRS Combats Independent Contractor Misclassification

By Watson CPA Group (Google+)   Does your company use independent contractors? Or the occasional freelancer? Should they be considered employees instead? Mistaken classifications has spurred renewed action by the Department of Labor with their misclassification initiative. Armed with a $14 million dollar budget, and a new team of 100 auditors, the latest initiative aims…

Take The Home Office Tax Deduction When You Have a Regular Workplace

By Watson CPA Group (Google+)   Typically, if you do most of your business or professional activities in one location, that place counts as your regular place of business. Consequently, when you have a regular place of business and do some of the work from home, you cannot claim the home office deduction. But what…