Blog Archives

Colorado’s New Minimum Wage

On January 1, 2018, the Colorado minimum wage will increase to $10.20 per hour. For tipped employees, the minimum wage will be $7.18. The new minimum wage is the result of the passage of Amendment 70 by Colorado voters in

Posted in Colorado

Donating Art

How much of a deduction can I take for the art I donated?  It depends. The people who buy the art are entitled to deduct the fair market value of the art, but the people who create the art are

Posted in Deductions

Prepaid Expenses 12-Month Rule

Most individuals and many small businesses use the cash basis method of accounting. With this method you record income when money is received and you record expenses when money is paid out. Tax deductions are taken in the year they’re

Posted in Deductions

Deducting Vehicle Expenses

When it comes to taking deductions for your business vehicles, you can either use the standard mileage deduction or the actual expenses, but not both methods. Standard Mileage Rate With the standard mileage rate, you take a mileage deduction for

Posted in Deductions

Employee Bonuses and Gifts

You can deduct the cost of tangible gifts you give to employees as long as the value does not exceed $25 per year per employee. They qualify as business expenses, and the gifts are not taxable to the employees or

Posted in Deductions

Worker Classification

While the definition of employment in Colorado law is broad and inclusive, it is not the same as the Internal Revenue Service. According to Colorado law, the two main concepts used to determine the status of a worker and whether

Posted in Colorado

Can I pay someone as both an employee and as an independent contractor?

The official IRS position is that “facts and circumstances” always dictate how a worker is “classified” for employee (W-2) or independent contractor (1099) purposes. A person can be both an employee and an independent contractor if their “sideline services” are

Posted in Tips

Are Tips and Gratuities Subject to Sales Tax in Colorado?

Tips and gratuities are payments that are separately paid to someone providing a service. NOT TAXABLE Tips and gratuities are NOT subject to sales tax when they are left on the table or location where the service took place or

Posted in Colorado

Worst Part of Owning a Business

“40% of small business owners say bookkeeping and taxes are the single worst part of owning a business.”  Source: 2014 survey from SCORE, a small business mentoring organization

Posted in Quotes

Can I claim the home office deduction if I don’t own my home and pay rent?

You can claim the home office deduction whether you rent or own your home. There are two options.  You can use a simplified option which is the square footage of the office times $5.  If you use the regular method,

Posted in Deductions, IRS