Vernoia, Enterline + Brewer, CPA LLC

Archive for the ‘Bookkeeping’ Category

Employee or Independent Contractor – Know the Rules

The IRS encourages all businesses and business owners to know the rules when it comes to classifying a worker as an employee or an independent contractor. (more…)

Hobby or Business – IRS Offers Tips to Decide

Millions of people enjoy hobbies that are also a source of income. From catering to cupcake baking, crafting homemade jewelry to glass blowing — no matter what a person’s passion, the Internal Revenue Service offers some tips on hobbies. (more…)

Debt Cancellation May be Taxable

If a lender cancels part or all of a debt, a taxpayer must generally consider this as income. However, the law allows an exclusion that may apply to homeowners who had their mortgage debt canceled in 2016. (more…)

Medical and Dental Expenses May Impact Your Taxes

Medical expenses may trim taxes. Keeping good records and knowing what to deduct make all the difference. Here are some tips to help you know what qualifies as dental and medical expenses.

medical_care (more…)

How do I? Opt-in to the new partnership audit rules

The IRS has issued temporary regulations (T.D. 9780) that explain how a partnership can opt in to the new partnership audit regime that was enacted in the Bipartisan Budget Act of 2015 (BBA). As enacted, the new audit rules will apply to partnership returns filed for tax years beginning after December 31, 2017. However, the new law allows partnerships to elect to apply the new audit regime to a return filed for a partnership tax year beginning after November 2, 2015 (the date of enactment of the BBA) and before January 1, 2018. A tax year within this period is identified as an “eligible tax year.” (more…)

Couple allowed homesale exclusion following birth of second child

babyThe IRS determined that a married couple could take advantage of the reduced maximum exclusion of gain from the sale of their home after the birth of their second child (LTR 201628002). Unforeseen circumstances were found to be the primary reason for the sale. (more…)

Tax Court allows patent attorney to take business deductions for car restoration

car_restorationThe Tax Court has found that a taxpayer, a patent attorney by trade, was entitled to substantiated business expense deductions stemming from his automobile restoration business, as he intended to make a profit from the activity (R.B. Main, TC Memo. 2016-127). The taxpayer successfully proved that the primary objective of his automobile activity, the restoration and then sale of 1955 and 1956 Plymouth automobiles, was to make a profit under the standards of Code Sec. 183(b). (more…)