Posts by Rick Gossett

You can deduct ordinary and necessary expenses to entertain a client, customer, or employee if the expenses meet the directly-related test or the associated test. Entertainment includes any activity generally considered to provide entertainment, amusement, or recreation, and includes meals provided to a customer or client. An ordinary expense is one that is common and…

Your general business credit for the year consists of your carry forward of business credits from prior years plus the total of your current year business credits. In addition, your general business credit for the current year may be increased later by the carry back of business credits from later years. You subtract this credit…

A business trip is a good opportunity to do productive work for your business while earning substantial deductions. But it’s important to know the rules and limitations of deductions for business trips. You need to be aware of what constitutes a business trip, what things are deductible, and what you need to do to support…

Question: You have completed your return. You owe more than you expected, and don’t have the cash to pay by April 15. What should you do? Answer: File your return anyway. There are two sets of penalties: Failure to Pay and Failure to File. The Failure to Pay penalty is 0.5% – 1% per month.…

As an employer, your payroll responsibilities extend far beyond issuing employee checks. Your company is also required to: Pay the company share of payroll taxes; Deposit tax dollars withheld from employee paychecks; Prepare reconciliation reports and financial reports on payroll expenses; File payroll tax returns. Related Article: Taxes to Withhold for New Employees Types of…