The Tax Preparation Blog

Posts Tagged ‘accounting’

Question: Can I get Circulars & Notification Related to All Tax Matters and How?

Circulars Related to Withdrawal of Professional Tax in Rajasthan.

Answer: Central govt. tax circulars will be available on http://incometaxindia.gov.in . However to find out taxation circulars try state govt. web sites or IT books like ready reckoner etc. Your local tax consultant can help you.

ASTRONOMY NOW SOLVING STAR DISTANCE PROBLEMS BY RECENTLY DEVELOPED METHOD WITH GREAT FUTURE

One of the greatest problems that confronts astronomers at the present time is an accurate knowledge of the distances of stars. From the earliest times, the relative positions of stars or their apparent directions in space have been observed and measured with increasing accuracy.

How to Deal with IRS part 4: Talking to the IRS in person

Question: Are certification exams for advancement in employment (W-2) and books, equipment, etc tax deductible?

I’m a network engineer and as the IT industry is constantly changing I have to keep up with certifications through test fees ($250- $500/attempt), books ranging from $60-$200 each purchased on Amazon, and lab equipment (switches, routers) purchased off of ebay, etc. that have no personal use except professional enrichment. I’m a W-2 employee but in order to advance in the IT world salary wise is to stay ahead of the game. I was just curious if anyone could help. Thanks!

Answer: Yes, expenses incurred to maintain your job are deductible on Form 2106. Your total deduction on this form then goes on Schedule A under miscellaneous deductions and is subject to a 2% of AGI floor. For example, if your AGI is $100,000, the first $2,000 of miscellaneous deductions are thrown out.

More in Business

First Bank recently announced the election of Brad Davis, Andrew Fisher, Alma Lamm Friedman, Al Gerard, Ranee Singleton Holbrook, Jay D. “Rocky” Jacobs, Charlie Manning, Terry Smithwick, Rep. Arthur Williams and William “Bill” Zachmanto to its local advisory board in Beaufort County.

AMCF 2008 Annual Meeting: Regulatory Issues Affecting MC Firms

Question: Did I pay to much for my S-Corp tax return?

I paid about $2500 for my small businesses taxes. There were about 25 depreciated items. We had about 160K net sales. I’m not sure where all the time went?

The statement of work my accountant gave me said generic services like “Year End Accounting”, “Tax Return Review”, “Tax Return Preparation”. The rates are 80/hour and 150/hour. 1.2 hours at 150 and about 29 hours at 80/hour.

Any ideas?

Answer: That does sound a little too high. However, it all depends in what shape your books were in. Do you do your bookkeeping on a monthly basis? If you don’t keep your books in good shape and you just drop a pile of bank statements and receipts off to your tax preparer, and they really had to spend 30 hours going through it, then it is what it is. I’d recommend keeping your books in shape and getting someone to do it on a monthly basis. That way, at the end of the year you can hand it off to your tax preparer and they wouldn’t have to do that much work – for a return like yours I charge about $600 if the client has everything in order. Plus, if you do your books on a monthly basis you can actually see what’s going on in your business and know if you are making money every month as opposed to waiting until the end of the year to see how your business is really doing. It gives you the opportunity to make changes as you go, and make your business better.

I hope that helps.

in Somerset, treasurer, tax collector may become appointed offices

Voters now choose the town’s treasurer and tax collector, but those positions could soon be appointed by selectmen if a warrant item making the change is approved at this year’s annual Town Meeting and in next year’s town election.

Executive Tax Planning & Benefit Review Services

Question: Question about CANADA self-employment & income tax!?

I am sick of reading and going through tons of forms and websites, so if someone can give me a more realistic answer I would appreciate it.
I have just started a new job (SELF-EMPLOYED) doing translations and I will be earning about 3000 dollars a month.

Could some one tell me how much in all (maybe a percentage) of my monthly earnings I would have to pay as income tax, CPP, EI and the likes?

I live in Halifax, Nova Scotia.

Thanks!

Answer: EI – you’re EI exempt since you’re self employed, so you don’t pay EI, nor are you entitled to claim EI.

CPP – you have to remit 9.9% of your income to the CRA for CPP. The first $3,500 of income you earn is CPP-free and everything from $3,500.01 to $44,900 is subject to the 9.9% tax

Finally income tax is remitted using the formules laid out by the CRA. Probably the easiest way to calculate it is from the CRA’s calculator at http://www.cra-arc.gc.ca/eservices/tax/business/pdoc-e.html

Also you’re going to have to register your self-employed business with the CRA.

David Bond

What fate awaits the England manager?

President Obama Holds a Health Care Town Hall at AARP

Question: Goods or services for your own use – tax return question?

I’m filling in my Tax Return Online for the first time and am not sure what the above calculation statement means under the Adjustments section on my tax return. I am not sure what Goods and Services I should be calculating. Please Help?
I run a domestic cleaning business.

Answer: You should be putting the value of the goods or services that you take out of the business for personal use. This also includes anything that you give to friends and family etc. This has the effect of increasing your profit, as if you had actually paid the value of the goods/service into the business in the same way as a regular customer.

For example, you sell widgets. You buy 50 widgets for £10 each, and after selling all 50 the total value of these sales was £1000. On the face of it this is a profit of £500 (1000 – 50*10).

But you took 3 widgets for yourself and you gave 2 to your mother. Strictly you should tally the normal sale value of the goods you take for personal use. If this is £20 you have taken a value of £100 for personal use. That is the figure you should use in this column. That will adjust your profit up to £600.

UPDATE: IRS Unveils Plan to Regulate Tax Return Preparers

WASHINGTON -(Dow Jones)- The Internal Revenue Service said Monday it will require registration and competency exams for legions of tax return preparers that now largely escape regulation.

Tax Return Services Lubbock TX Century Small Business Solutions