Employee Business Expenses

If you are an employee who incurs expenses related to your job, you may want to understand how those expenses may be deducted on your tax return. Common expenses incurred include business meals, supplies, travel away from home, and education. The tax treatment of these expenses depends on whether you are reimbursed for your costs, and if so, under what type of arrangement.

Home Office Deductions

With tax filing season right around the corner it is time to start looking for deductions!  You may be asking yourself, when do business activities in a home qualify for tax deductions?  Certain expenses attributable to the business use of a dwelling unit may be deductible if they fall into two categories.
The first category encompasses business use that is regular and exclusive.  Expenses attributable to the business use of your home may be deductible to the extent allocable to the portion of your home used exclusively and on a regular basis:

Reducing Tax Liability: Year-End Planning for Capital Gains & Losses

Without any planning, capital gains and losses can serve as a wild card when it comes to taxable income and tax liability.  With rates ranging from 0% to 39.6% for capital gains, taxpayers need to get educated.  The net investment income tax of 3.8% makes planning even more critical.  The first step to controlling capital gain taxes is to know the basics of tax rates and offsetting gains with losses.

Deductible Mortgage Interest

One of the more common itemized deductions that an individual claims on his or her tax return each year is the deduction for mortgage interest paid.  Generally, this is the amount reported in Box 1 of Form 1098 issued by the lending institution.  In recent years, interest rates have been and are still relatively low.  Many people have taken advantage of these lower rates either by buying new homes or refinancing their existing mortgage on their current home.  With this in mind, we will discuss some aspects of claiming interest related to your home as a deduction on your tax return.

IRS Scams

In today’s electronic age of social media, smart phones, electronic business transactions, and identity theft there are more opportunities out there for the scammers to find creative ways to steal money while hiding behind the scenes during the process of committing the crime.


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