Kostecke CPA

Blog

Are Legal Expenses Deductible?So, are legal expenses tax deductible? If you are going through a lawsuit, a divorce, or a business situation in which you are paying legal fees, you may be able to get a tax benefit. Sometimes you can take a deduction, but when?

Expenses That are Tax Deductible

There are a couple rules of thumb on this.

  1. First, you can deduct legal Read more

The Nine Factors and the Hobby Loss RuleWhether the IRS considers you a hobby or business is not as simple as looking at how profitable you are. Unfortunately, you may be running a business that is not profitable this year and has never been profitable, but it still isn’t a hobby.

There is a 9-factor test that the IRS uses to determine if your business is a legitimate Read more

Do I have to pay taxes on that?Sometimes things happen that result in income to you, but you don’t know if you have to pay taxes on it in some instances. Do I need to report it on my tax return or not? Here are a few of those items and how they should be treated for taxes.

On Which Income Types Must I Pay Taxes?

Read more

The American Opportunity Tax CreditThe American Opportunity Tax Credit, or AOTC, is the best way you can recoup some of your investment in your family’s education. You can get up to $2500 in tax credits if you qualify.

Qualifying for the American Opportunity Tax Credit

Here are the qualifications: Read more

Your business should become an S-CorpS-Corporations provide several tax advantages to small businesses. But did you know there are a couple other reasons you should consider becoming an S-Corp? Let’s start with everyone’s favorite… Read more

The clothing tax deductionI often hear from clients that they had to buy special clothes – could be a business suit for interviewing, or nice pants/shirts/shoes, etc., that they only wear at work. They want to deduct these costs as business expenses; taking advantage of whatever clothing tax deduction that is allowable by the IRS. Most of the time, these deductions are not Read more

Vetting a Prospective Tax PreparerThis time of year, I get calls from potential clients looking for somebody to prepare their tax returns. I really love this time of year because I love getting new clients. However, I know that it doesn’t do any good to bring in a lot of new clients if we are not right for each other. So I do my best to tell them about myself and answer Read more

Tax Liability - Avoid Federal Tax PenalitiesTis the season for 2015 tax estimates and figuring out how much this year’s quarterly payments need to be. When you’re self-employed, or you get a significant amount of income from investments, it can be difficult to figure out the right amount to pay in. Who knows what lies ahead for your business, your investments, and the Read more

Your tax preparation checklist can save you time and a lot of griefLast year at around this time I provided some tips on how to save money on your taxes after December 31st. This article is also about saving you money and quite possibly a bit of time.

Perhaps you have just received your 47-page tax organizer in the mail Read more

Business PlanningWhen you read that the New York Stock Exchange (NYSE) might not be around in the next year or two, it gets your attention. I mean, the NYSE, the icon of American business and capitalism for the world. How could this have happened? Stocks are still being traded and the stock market is alive and kicking. Read more