Blog Archives

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

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