Tag: business expenses

Are the Wages Paid to a Family Member Tax Deductible?

Written by Paul Belfiore on January 13, 2023. Posted in Blog, Taxes.

Amherst, NH Family-Owned Business Looks to Hire Teenaged Family Members

Family-owned businesses have many tax advantages when employing family members. Money paid to family members reduces the net income of the business, thereby reducing the overall tax burden. In addition, insurance costs and other benefits offered to the employed family members can also be deducted from the business’ profits as an expense. When a parent is the sole proprietor and the business is not incorporated when children under the age of 18 are employed, neither the business nor the employed minor are required to pay FICA taxes. Having a family member on payroll, whether a minor child or spouse, can significantly reduce the amount of taxes owed at the end of the year.

How is the Home Office Deduction Calculated?

Written by Paul Belfiore on November 11, 2022. Posted in Blog, Taxes.

Self-Employed Brookline, NH Resident Has Questions

When claiming the home office deduction on your taxes you can use the simple or regular method for calculating your deduction. To determine which is the best calculation, you will want to determine which of the two will offer you the larger deduction. With the simplified method, you would complete a Simplified Method Worksheet, supplied by the IRS. This will require you to indicate the square footage of your business space in the home among other factors to determine the deduction amount. The regular deduction method uses Form 8829 and factors in mortgage interest, real estate taxes, insurance, and utilities to determine the deduction amount.

What to Do If You are Missing Tax Paperwork

Written by Paul Belfiore on February 12, 2021. Posted in Blog, Taxes.

Amherst, NH Resident Worries

While employers and institutions have a deadline for sending out tax paperwork, there are plenty of reasons it may fail to get into your hands. Whether lost in the mail, misplaced or some other event, the best step is to contact the issuer of the document. They may be able to send a duplicate copy right away. If you are still not having any luck getting the missing document, you can call the IRS. Providing information to the IRS about the document in question will make sure that you are covered when you go to file your taxes.

Will Your Business PPP Loan Be Tax Deductible?

Written by Paul Belfiore on January 29, 2021. Posted in Blog, Taxes.

How Will the Stimulus Package Affect Your Taxes

Amherst, NH Business Owner Has Concerns

Businesses who took advantage of the Payroll Protection Program (PPP) can breathe a sigh of relief. Legislators have decided money from the PPP will allow for the deduction of expenses. This means that businesses will not lose any tax deductions that were expected because money was paid using the PPP loans. This is big news for businesses and a huge relief of a potentially hefty tax burden.

Will You Incur a Penalty if You Miss the Tax Filing Deadline?

Written by Paul Belfiore on November 13, 2020. Posted in Blog, Taxes.

Goffstown, NH Resident Has Questions

Not filing your taxes on time could result in a failure-to-file penalty. This penalty is 5% of the unpaid taxes for each month that the tax return is late, up to five months. Continuing to ignore your taxes could result in the IRS taking action in the form of a federal tax lien on your property, seizing your property and even filing charges for tax evasion.

How Will Working from Home Affect My Taxes?

Written by Paul Belfiore on June 12, 2020. Posted in Blog, Taxes.

Can a Home Office Be Considered a Business Expense

Windham, NH Resident Seeks Advice

Employees working from home are no longer able to deduct business expenses, as this deduction was eliminated in 2018. Only self-employed individuals can qualify for home office deductions. Self-employed workers can claim either $5 per square foot of home office space up to 300 square feet, or a percentage of the home and costs to maintain it as a deduction.