Posts Tagged "business expenses"

Consider creating an accountable plan

Posted on Jun 29, 2018

Now that itemized deductions have been suspended through 2025, employees can no longer deduct unreimbursed business expenses. Fortunately, you can help your employees out with a tax benefit that is also deductible by creating an accountable plan. When set up properly, it will allow you to reimburse employees for business travel and other related expenses while preventing the need to pay payroll taxes on the reimbursements. Call us if you have questions about setting up an accountable plan for your business. Gilliland & Associates, PC is a full-service CPA firm specializing in tax planning for individuals and businesses in the Northern Virginia area. We are based in Falls Church, VA and also service clients in McLean and Tysons Corner, VA. Gilliland & Associates is known for our superior knowledge and aggressive interpretation and application of tax laws. We help you keep more of your earnings by finding you the lowest possible tax on your business or personal tax return. You can connect with us on Google+, LinkedIn, Facebook, and...

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Other business expenses

Posted on Jul 26, 2011

 While there’s no hard and fast rule, examples include insurance premiums, legal and professional fees, supplies you use in your business, utilities, auto expenses, and the deduction for certain energy-efficient commercial building property.  Here’s a guide for less obvious items.  * Like all costs you incur in your business, “other” expenses must be ordinary and necessary in order to be deductible.  In tax law, “ordinary” means normal, usual, or customary in the context of your business.  For example, if you’re a commercial fisherman, boat insurance is an ordinary expense. Other business owners may have a harder time justifying a deduction for boat expenses.  * An expense is necessary if it is appropriate and helpful to the operation of your business.  * Some expenses are only partially deductible. For instance, the cost of meals and entertainment must have a direct business purpose before you can claim a deduction. Even then, your deduction is generally limited to 50% of your cost.  * Certain expenses are specifically identified as nondeductible. Personal, living, or family expenses fit into this category, as do fines, penalties, political contributions, commuting to and from your job, and most lobbying costs.  Contact us any time you have a question about the deductibility of a business expense. We’ll help you get the greatest tax...

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