You say Business – IRS disagrees, Hobby

Start a business in something you love?  You are making little money but that does not matter – you are enjoying the tax deduction advantages.  You can turn a seemingly expensive activity to a mini-business with a bunch of tax write-offs.  What a deal! But then the shock comes when the IRS says, “No!” you have a hobby and your tax deductions are taken away.   Continue reading…


Next big topic is tax cuts. What is a tax cut?

Tax cuts are a hot topic. The impact of a tax cuts is not fully understood, which has lead to a number of questions. What will it do for the economy? How will the tax cut effect individuals? How will the tax cut effect businesses? Will it encourage people to spend more? What type of tax cut is it? Continue reading…


Understand a Profit & Loss Statement

Most people that work for a business may never think about the reports that aid owners and managers for making decision. One of those reports is the profit & loss statement. The profit & loss statement shows all of the company’s income from sales, services and any other sources. It also shows the companies expenses. These are good things to record to see if the company is making a profit or a loss. Continue reading…


Retirement and Unexpected Taxes

You are now retired.  Because you are retired, you no longer have to worry about taxes.  Right??? Wrong. You may continue to pay taxes after retirement. How much you pay depends on the amount and type of retirement income received.

There is one big problem.  Unlike when you were an employee, taxes are not automatically taken out of your retirement. We will review withholding taxes and taxes on different retirement income.   Continue reading…


IRS Scammer Caught Red Handed

For about a year, I received numerous calls from people that received a strange call from the IRS. The IRS scammer would demand money to pay back tax debt. If the person didn’t pay, the scammer would threaten to call the police and jail time.  I thought it would be interesting to call a scammer and record the conversation.

Continue reading…


Time to Panic, Going to Next Tax Bracket

We are over halfway through the year. Do you know how much you will have to pay this year in taxes? Are you afraid of earning more income and going up a tax bracket?  We will review how the tax brackets work.  It is not as bad as you may think.  Continue reading…