Month: March 2015

Social Security Taxable Wage, Conclusion

How much the taxable wage base rises each year depends on cost projections made by the Social Security Administration. They make three forecasts, one each for low, medium and high costs. The medium cost is forecasted to rise every year for almost the next decade. There are long term forecasts, but they are subject to… Read More

Social Security Taxable Wage, Part I

“Our society must make it right and possible for old people not to fear the young or be deserted by them, for the test of a civilization is the way that it cares for its helpless members.” Pearl S. Buck Everyone who works for a living knows about the Social Security tax. It’s a big… Read More

Home Office Deduction Safe Harbor, Part II

As promised, this week concludes my Home Office Deduction Safe Harbor column. If you are not using the safe harbor calculation, you must figure the amount of your deduction on IRS Form 8829, Expenses for Business Use of Your Home. Deduct 100% of expenses that are directly related to the home office. This can include… Read More

Home Office Deduction Safe Harbor, Part I

For small business owners, home office deductions can be an important tax break. Instead of renting space, many businesses can be operated from home, lowering the business’s overhead costs and reducing the owner’s tax liability. Until 2013, home office deductions have required a calculation method that involved depreciation and other factors. It brought confusion and… Read More

Bartering – the Oldest Form of Trade is Still With Us, Part IV

There are a few accounting guidelines to remember when you conduct barter transactions. First, all barter income is dealt with on a cash basis. The IRS treats barter as income received whether you use accrual-basis or cash-basis accounting. You must report and pay taxes on barter income for the year in which it accrues. If… Read More