The IRS Deductions Blog

Archive for October, 2009

Question: are cells phones tax deductible for truckers?

Answer: If it’s there only phone, no.
If it’s a second phone and you can show the exact cost of their business use, maybe. If it’s bundled service, probably not.

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Use your cell phone as a budgeting tool

You can use your phone to track expenses as you incur them by texting, e-mailing or tweeting.

It’s Just A Question Of Time…Before You Start A Business F

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Briefly: April 10

Read about what’s happening in and around Plymouth.

Personal Financial Planning Tips : How to Hedge Against Inflation as an Individual

Question: What would a good catastrophic health insurance policy be for a low income texas resident?

I’m seeking the lowest premium, highest deductible. What company should I research??/ I”ve seen BCBS and Unicare.

Any and all info welcome.

TY

Answer: I would suggest looking at you personal financial position. How much can you afford that wouldn’t financially devastate you for the rest of your life.
Granted $5,000 would be a tough pill to swallow, but financially you could probably pay it off.
Remember, no matter what plan you choose, the claim might go to your deductible but you would still receive the provider discount, which is usually a nice amount.
Go with a high deductible with 100% co-insurance so you know what your stop loss is (your maximum out of pocket)
BCBS is a good solid company, I have also seen low rates with American Community

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Take a Survey, Help Future Generations

It’s a simple survey, designed to help improve the health of future generations of women in the bluegrass state.

Independent Contractor’s Views on Health Insurance

Question: can i claim travel expenses on schedule c and schedule a on my 1040 tax return?

i get w-2 from my job but i pay for my own gas and supplies and i claim a home office deduction
im a home health nurse and i dont have an office and i drive from patients to patients homes. thanks

Answer: Schdule A since you receive W-2. Be careful unreimbursed job related expenses are subject to limitation (2%).

Also, gas on communting to/from work is not deductible – fyi

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Every Landlord’s Tax Deduction Guide (2nd Edition) $25.00 This bestseller is the only book on tax deductions specifically for residential landlords! If you own rental property, you should be taking advantage of the many tax write-offs available. Every Landlord’s Tax Deduction Guide gives residential landlords the plain-English guide they need to save money on taxes — without the services of a high-priced accounting firm. This book explains how to ma…

Instructions for schedule A, itemized deductions (SuDoc T 22.51:1040/SCH.A-B/INST./) …

Itemized Deductions; Interest and Ordinary Dividends, IRS Tax Form 1040, Schedule A and B 2007 $31.50 …

Government of Canada Announces New Electronic Filing Requirements for GST/HST Registrants

OTTAWA, ONTARIO–(Marketwire – Jan. 4, 2010) – The Honourable Jean-Pierre Blackburn, Minister of National Revenue and Minister of State (Agriculture and Agri-Food), today announced proposed changes to electronic filing requirements for goods and services tax/harmonized sales tax (GST/HST) registrants beginning July 1, 2010. “As a result of these changes, more businesses will benefit from a …

Tax Deduction Tips for Businesses : Schedule E Tax Tips

Bookkeeping is the process of keeping full and up-to-date business records. It’s the recording of financial transactions. Transactions include sales, purchases, income, and payments whether by organizations or individuals. A bookkeeper must make sure all transactions are recorded in the correct daybook, suppliers ledger, customer ledger, and general ledger. Although a bookkeeper is called an accounting clerk, or an accounting technician, don’t confuse bookkeeping with accounting. An accountant uses a bookkeeper’s records to create financial reports. Since the jobs are similar, many bookkeepers have the potential to become (or are) accountants also.

There are two common systems that bookkeepers use to record financial transactions. Small businesses primarily use the single-entry system. This system uses only income and expense accounts, recorded primarily in a revenue (money earned) and expense journal. The double-entry system is more complicated, and makes sure that the books are error-free. This system does this by recording transactions in two different nominal ledgers (two parts) of the books, and using a balance system of debits and credits. Having the data recorded in two different ledgers allows the bookkeeper to recover from an error in one, by looking at the other…at least in theory.

Financial transactions are recorded in several different books. These, starting with the daybook, contains the most detailed records. Sometimes daybooks are not kept, so everything is recorded in journals. The totals in each section (sales, purchases, credits, cash etc.) are recorded in the ledgers. Ledgers also have different sections, and they are used to make the balance sheet and income statement. Ledgers often include:

* Customer ledger, for financial transactions with a customer (sometimes called a sales ledger).

* Supplier ledger, for financial transactions with a supplier (sometimes called a purchase ledger).

* General (nominal) ledger representing assets, liabilities, income, and expenses.

When a bookkeeper wants to check the books for errors, they bring them to a trial balance stage. At this stage, they create a worksheet listing the balance of each ledger account, in two columns (debit and credit), at a certain date. Under the double-entry system,a transaction’s debits must equal it’s credits. Trial balance is often used as a tool to probe for errors. If the debits and credits don’t balance, then there is an error. Even if the difference of the debits and credits is zero (debits-credits=0); there can still be errors. For instance: if a transaction is omitted (error of omission), the totals will not be effected. A trial balance is a statement of ledger.

Now, bookkeeping can be done on the computer. This is called computerized bookkeeping. Computerized bookkeeping allows much of the paper “books” to be eliminated, therefore saving trees (but not electricity). The main advantage however, is the increased speed at which bookkeeping can be accomplished.

Bookkeeping can be very time consuming. Therefore most small business owners use a bookkeeping service. Large businesses on the other hand often hire a bookkeeper–or several. There is no need to visit a bookkeeper when you have the internet, however. You can submit financial information to a bookkeeper online, in the convenience of your own office!

So what are these books used for? Aside from providing strategic information to the owner, a company’s books are used to allow an accountant to create financial reports, and determine what taxes companies must pay. Its for you and the government.

See also: http://en.wikipedia.org/wiki/Bookkeeping

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