Barry Gilbert, CPA, EA
Enrolled to Practice Before the Internal Revenue Service
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Is Now The Time To Consider a Real Estate Rental Property?Does the decline in real estate values present a business opportunity? Real estate rentals historically have been a popular long-term investment, and if you believe that this market eventually will rebound from its current slump, this may be the time to consider such an investment.Read the article »
How to Avoid Common Business MistakesIt is not uncommon for business owners to become so involved with their day-to-day operations that they overlook some important issues associated with being in business. Here are some tips to help you avoid making costly mistakes and to ensure that your business runs smoothly.Read the article »
Determining Vehicle Business UseHow does a taxpayer who uses his or her vehicle partly for business determine what portion of the vehicle’s operating expenses can be deducted for business use? According to tax regulations, business use is determined by the number of miles traveled between two business locations.Read the article »
Plan for Auto DeductionsWhen you use a vehicle for business purposes, the business portion of the operating expenses can be deducted on your self-employed business or, if you are an employee as a miscellaneous itemized deduction. (If you are an employee, you may claim the deduction only if using your own vehicle is a condition of your employment and doing so is for your employer’s convenience.) The tax code provides two possible options for computing the deduction: using the standard mileage rate or using actual expenses.Read the article »
Husband and Wife Joint VenturesA married couple that owns a joint business venture in which they both participate can elect to file two self-employed business schedules (Schedule C or Schedule F) on their personal income tax return, dividing the income and expenses instead of filing a partnership return.Read the article »
Lunch as a Business ExpenseMany individuals spend time away from their offices while calling on customers and vendors. As a result, they end up having to buy their lunch and want to deduct the cost of that lunch as a business expense.Read the article »
Use Like-Kind Exchanges to Defer TaxesWhenever you sell business or investment property and you have a gain, you generally have to pay tax on the gain at the time of sale. However, the tax code provides an exception and allows you to postpone paying tax on the gain if you reinvest the proceeds in similar property as part of a qualifying like-kind exchange. These type of exchanges are commonly referred to as Sec. 1031 exchanges (referring to the tax code section that allows them), but it is important to understand that the tax on the gain is deferred and is not tax-free.Read the article »
Disposing of Business AssetsMany taxpayers fail to understand the tax ramifications of disposing of personal property such as equipment, furniture and autos used in business and end up with unpleasant surprises at tax time. The tax consequences depend upon how the property was used, how long it was owned and the method of disposition. There are numerous ways of disposing of an asset, such as selling, scrapping, converting to personal use, contributing to a charity, exchanging for another like business item, or even giving it away. We cannot cover all of the aspects of dispositions here but we can give you an overview.Read the article »
Employers Beware – Misclassifying WorkersThe Internal Revenue Service has developed a new form for employees who have been misclassified as independent contractors by their employers. Form 8919, Uncollected Social Security and Medicare Tax on Wages, will now be used to figure and report the employee’s share of uncollected social security and Medicare taxes due on their compensation.Read the article »
Charitable Contributions in a Self-Employed BusinessGenerally, for self-employed individuals, charitable contributions are not deductible on Schedule C as a business expense and can only be deducted as an itemized deduction on Schedule A. However, tax regulations state that transfers to a charity that are directly related to a taxpayer's business and are made with a “reasonable expectation of financial return commensurate with” the amount transferred may be deductible as a business expense.Read the article »
Life After the Real Estate Bubble BurstWith lenders becoming more conservative, money tightening up, and the real estate market in decline, many homeowners and speculators find themselves faced with some unpleasant choices. One strategy is to wait until home prices rebound, but that could be some time and probably too far off for the owner with a variable rate or short-term introductory rate loan and increasing mortgage payments.Read the article »
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