Business taxes

Sending 1099-NEC (formerly 1099-MISC) to contractors and vendors

REMINDER: Since 2021, NEW form 1099-NEC replaced the old 1099-MISC for contractor payments! 2024 update: While not directly related to sending 1099-NEC forms to your contractors, you may have seen the panic on social media about every $600 electronic payment reported to the IRS under a new law. This law has been postponed and may …

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Trump tax plan – OMG!

[…] It gets more unsettling when we insert couple kids in the picture. Personal exemptions of $4k per person are rolled into the standard deduction under the Trump plan. It means no taxable income reduction for kids, in stark contrast with the current system which affords a $8k write-off for 2 kids […]

Can I deduct this on my tax return?

And who would know if not the almighty IRS? So, let us visit www.IRS.gov and download the official Publication 535 conveniently titled Business Expenses. There, on page 3, we receive the much-appreciated legal guidance: To be deductible, a business expense must be both ordinary and necessary. If this is not clear enough, the ever-helpful IRS goes an extra mile to …

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