BUSINESS TAX PREPARATION
DID YOU KNOW:
- New Employee Retention Tax Credit is 50% of up to $10,000 in qualified wages paid to an employee (CARES ACT)
Our typical fees for Business Tax Preparation could range anywhere from $850-$3600 which includes partnership tax returns (Form 1065) and corporate tax returns (Form 1120 and 1120S). The fee might seem too broad but this depends on how you have kept your accounting records or do we need to do some leg work.
We try to maintain historical fees for our returning clients.
The events that could increase your fee more than $3600 could include:
Now we are here to build a clean and optimistic business relationship with our clients. If anytime during the road trip you want to make a stop and stretch your legs, we can always work with that. We can provide you with guidance and an advise of additional work that will be needed and provide you with the fee range that we both can agree on.
We try to maintain historical fees for our returning clients.
The events that could increase your fee more than $3600 could include:
- Capital accounts
- Partnership account adjustments
- Adding or removing partners
- Entity shutdowns
- Foreign Entity Transactions
Now we are here to build a clean and optimistic business relationship with our clients. If anytime during the road trip you want to make a stop and stretch your legs, we can always work with that. We can provide you with guidance and an advise of additional work that will be needed and provide you with the fee range that we both can agree on.
You can complete extension Form 7004 for Corporation and upload on client portal
Small Business Tax Deductions (Summarized)
You may want to deduct all of your business because you are spending all the money after all and making that business run . But can you? The answer is yes and no.
The business expenses must be:
You may want to deduct all of your business because you are spending all the money after all and making that business run . But can you? The answer is yes and no.
The business expenses must be:
- Ordinary and necessary (IRS Pub 334), and
- Paid or recognized in the current year, and
- Directly related to your business, and
- Reasonable (not lavish or extravagant-IRC Sec 162 and IRS Pub 463
Business Expense |
Deductible? (Yes or No) |
Advertising |
Yes |
Automobiles |
Yes, business use only |
Business Travel |
Yes and No, lot of rules (IRS Pub 463) |
Business Meals |
Yes - 50% if business meeting with client, prospect, or associate. 50% if traveling away from your tax home on business. 100% for company social gatherings (do not mix personal and business) |
Cell phone |
Yes, business use only. It is never 100% unless you have designated plan for business use only or second phone. Reimbursed through Accountable plan |
Client gifts |
Yes (Max $25 per client per year) |
Commissions |
Yes |
Commuting expenses |
No (Yes - only if you have a home office and then commuting becomes business travel) |
Copier Lease |
No (if capital lease), Yes (if operational). Depends on facts and circumstances |
Country club dues |
No. Nice try! |
Education |
Yes (only if improves your current skills or necessary in your profession, trade) |
Food |
Yes, 50% if business meeting with client, prospect, or associate. 50% if traveling away from your tax home on business. 100% for company social gatherings (do not mix personal and business) |
Health Savings Accounts |
Yes, company contributions (added to your W2 Box 1) |
Home Office |
Yes (if used regularly and exclusively for business, provided home office is used primarily for carrying out substantial administrative activities). Reimbursed through Accountable plan |
Insurance |
Yes – Business liability insurance Yes – Auto Insurance (if company owns the car) Yes - Health insurance and added to W2 Box 1 Yes - Dental insurance and added to W2 Box 1 Yes - Eye insurance and added to W2 Box 1 Yes - Long Term Care insurance but limited No - Disability insurance Otherwise your benefits become taxable income No - Life insurance. Only in C corporations where the corporation is the owner and beneficiary (no S Corp election). |
Legal, Professional fees |
Yes |
Merchant Credit card fees |
Yes |
Per Diem |
Yes – Sole proprietors and single member LLCs including partners in partnerships Maybe (if employees own more than 10% of a corporation, then No) |
Professional Attire |
Yes – If clothing is a uniform No – if clothing is suitable for everyday use |
Profit Sharing plan, 401K plan, Retirement Plan |
Yes |
Taxes |
Yes – Sales Yes – Payroll (company portion) No – Estimated tax payments |
Utilities |
No – unless you have separate location office. If using home office, utilities are part of deductible basis |
Website |
Yes |
Click below to check if you qualify for business use of your home
COMING SOON!
