Blog Archives

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

IRS Documentation

Avoid giving original documents to the IRS.

Posted in IRS

Youth Summer Employment

Students will soon be looking for summer jobs, and Colorado has some work restrictions for minors working in the state of Colorado. Minors are not allowed to work more than 40 hours in a workweek or in excess of eight

Posted in Colorado

Accounting Humor

The CEO of a company calls in an engineer and asks him what is 2 plus 2.  He says, “4.000000.”  He calls in the head of manufacturing and asks him what is 2 plus 2.  He says,  “To be safe,

Posted in Humor