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…
Blog Archives
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
Home Office Deductions
The home office deduction is a great benefit for home-based businesses. In 2013, more than 3.4 million taxpayers claimed deductions for the business use of a home. In order to claim the deduction, the IRS requires that the home office…
Posted in Deductions, IRS
Records Retention for Businesses
We are often asked, “How long do I have to keep this stuff?” Whether personal or business, the minimum is 3 years to retain records since the IRS generally has 3 years to audit you from the date you file…
Posted in Tips
Profit Motive
The law says that a business loss can produce a tax write-off as long as the owner is honestly trying to make a profit. The Tax Code provides a test for profit motive: If a venture doesn’t make money in…
Posted in Profit
Corresponding with the IRS
Whenever writing the IRS, always make several copies of whatever you send. If the IRS misplaces your first correspondence, you can send it again – and again, if necessary.
Posted in IRS
