Small Business
The most frequently asked tax questions related to Small Business
What is the IRS publication that explains home office expenses?
Asked Monday, November 28, 2011 by an anonymous userCPA Answer:
IRS publication 587 explains the details of deducting a home office.
What expenses are deductible in my home office?
Asked Monday, November 28, 2011 by an anonymous userCPA Answer:
Expenses directly allocated to the home office such as painting the office or buying furniture for the office are 100% deductable. Other expenses indirectly incurred are deductable at a business expense allocation percentage. These would include Real estate taxes, mortgage interest, depreciation, utilities, rent, insurance, snow removal and security.
Auto expenses
Asked Monday, November 28, 2011 by an anonymous userCPA Answer:
The actual expense method allows a individual to deduct all out of pocket costs for operating the auto plus depreciation if you own the auto. Some of those costs are Gas, insurance, repairs & maintenance garage rent, lease fees, licenses, loan interest, oil changes, parking fees, tires, tolls, towing and registration fees.
Auto lease payments
Asked Monday, November 28, 2011 by an anonymous userCPA Answer:
Yes. If you use a car entirely for business the cost of leasing is deductible. You cannot depreciate a car you lease. You can choose to deduct the standard mileage rate in lieu of actual expenses including lease payments.
What documentation is needed to deduct auto expenses?
Asked Monday, November 28, 2011 by an anonymous userCPA Answer:
You should maintain a log or diary of your auto expenses. If you use the actual expense method you should save the actual receipts for gas, oil, insurance, repairs, lices and taxes. If you use the mileage deduction method you need to maintain a log or diary which lists the date, destination, business purpose, mileage driven (odometer start/end) type and amount of other expenses incurred. Currently there are phone applications for mileage documentation.
Web site available to help small businesses
Asked Friday, November 18, 2011 by an anonymous userCPA Answer:
Yes. The IRS has developed a web site to help small business and self-employed persons at www.irs.gov/businesses/small/index.html.
I live in Alabama, California, Florida, Kansas, New Mexico, Oklahoma, Where do I file Form 941?
Asked Friday, October 28, 2011 by an anonymous userCPA Answer:
If you are filing a form without a payment, mail Form 941 to IRS Ogden, UT 84201-0005. If you are filing a form with a payment, mail Form 941 to IRS P.O. Box 105083 Atlanta GA 30348-5083
In a merger , what is the Pooling of interests accounting method ?
Asked Friday, January 12, 2001 by an anonymous userCPA Answer:
Pooling of interests is an accounting method for reporting acquisitions accomplished through the use of equity. The combined assets of the merged entity are consolidated using "book value", as opposed to the Purchase method, which uses "market value". The merging entities financial results are combined as though the 2 entities have always been a single entity.
W-2 - Company out of business
Asked Tuesday, January 09, 2001 by an anonymous userCPA Answer:
Go to your local CPA or go to the IRS website to obtain Form 4852 which is a substitute for form W-2 the wage and tax statement. Using your pay stubs and bank deposit slips calculate to your best ability your gross wages, federal and state withholding, social security and Medicare withholdings. You will then attach Form 4852 to your tax return.