Income Taxation

Pulpit Freed on Sunday vs. IRS on Tax-exempt Status

The Alliance Defending Freedom is pushing a project it calls “Pulpit Freedom Sunday.” The event has taken place every year since 2008. On October 7, which is designated “Pulpit Freedom Sunday”, pastors across the country are encouraged to “preach sermons that will talk about the candidates running for office” and then “make a specific recommendation.”… Read More

Your 1040 is Done But You Can’t Pay the Balance Due

Can’t pay your income tax? Didn’t pay enough in estimates or had too little withholding? Can’t  pay at all? Do you feel like you have to choose between the frying pan and the fire? You’re not alone, and there are ways to settle up with the IRS. First, if you are considering not filing your… 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

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

Since it is difficult to get an exact match where two businesses need equal amounts of each other’s products or services, the opportunities for direct barter transactions are limited. That’s where a barter exchange network comes in. The network deals in units of currency called trade dollars. The goods and services of one company in… Read More

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

If a business makes payments of bartered services to another business (except a corporation) of $600 or more in the course of the year, these payments are reported on Form 1099-MISC. For example, an attorney represents a painter for nonpayment of business debts in exchange for painting the attorney’s law offices. The amount reportable by… Read More

Who Fears a Big Bad Tax Bracket?

How many times have you heard someone say “Oh no, that will put me in a  higher tax bracket?” Most of the time these folks do not understand how tax brackets work. A lot of folks, including some very intelligent and/or successful professional types,  erroneously believe that if their income nudges them over into the… Read More

Employee Business Expense Deductions

Often employees spend their own money in furtherance of their job. If these costs aren’t reimbursed, you may be able to get a tax deduction for them. If your employer pays for or reimburses you for your business expenses, then you can’t deduct them. If your employer has an “accountable” plan, meaning that you must… Read More