DAVID S. BABOIAN, CPA, PC

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11/20/2015

November 20th, 2015

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11/19/2015

November 18th, 2015

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TAX TIP OF THE DAY... 
Deduct your home office.  A nasty rumor has been circulating for years that the home office deduction is a red flag for an audit.  This is completely FALSE.  Take the deduction!  

The home office deduction benefits a) unincorporated businesses b) certain rental properties and c) employees working from home 5 days.  Note: Employees working from home just some of the time can receive partial tax benefits.    

Hints:  
1) Use the number of rooms method for larger deductions. 
2) Skip the simplified method for larger deductions.
3) Don't forget to deduct personal items converted to business.... desk, computer, lamps, telephone, carpet, wall hangings, bookcase, etc.
4) IRS rules in this area are very complex and filled with exceptions & superceded rules.  Send me an email and I can advise if you qualify.
5) Discuss with a CPA how future capital gains may be affected.


SHARE WITH A FRIEND.  If you need any help... www.baboiancpa.com 

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11/17/2015

November 17th, 2015

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TAX TIP OF THE DAY... 
Generally, deduct your children as long as possible.   Just because a child gets a job does not automatically mean that you can no longer claim them as your dependent.  This is the most frequent error that I see on tax returns... because the parent wants to be "nice" to the child.  This generosity often saves the child a few hundred dollars, but can cost the parent thousands of dollars because of their higher tax bracket.   The decision must be weighed out very carefully.  Both tax returns should be looked at to make the best decision.  

The law... Children can be declared dependents until age 19 if they're not in school, 24 if they are and at any age if they're permanently disabled.  Additonal factors are the amount of child earnings and self-support.   

SHARE WITH A FRIEND.  If you need any help... www.baboiancpa.com 


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11/16/2015

November 16th, 2015

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TAX TIP OF THE DAY... 
Clothing donations can increase your refund up to $25 per bag!  This only works if you already deduct schedule A deductions (mortgage interest, property taxes).  These are the rules and how you do it... 
1) DROP BOXES usually won't work. 
2) get a RECEIPT-- it only takes 3 seconds at Salvation Army on Trindle Road.  The receipt is usually blank so you need to complete the # of bags, your name & address and value that your want to deduct (see below). 
3) DETAILED LISTING OR NOT?  I've never had an IRS auditor ask for the listing of what was in each bag, but it could happen.  My practical advice is to skip the listing unless you have lots of time on your hands.  Instead take a pic with your phone.  
4)HOW DO YOU VALUE THE CLOTHING...  you do this at home either before or after you drop off.  So don't be intimidated by the thrift store employee!  Often, there is a list on the back of the receipt with values.  There are software and web sites.  But REAL WORLD... $100 per large Hefty bag has been used by many taxpayers without issue even though not an IRS approved method.  If you are reasonable, any approach most likely will be allowed as long as you have a receipt.  If you have more expensive clothing such as formal wear or coats, then value these separately at higher amounts.  Use the price you could sell these items for on ebay (not yard sale prices, which are less).  

A professional tax advisor can help advise if your deductions are approaching audit trigger parameters.  SHARE WITH A FRIEND. 

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11/13/2015

November 13th, 2015

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​TAX TIP OF THE DAY... 
Deduct your home internet.  We all use a portion of home internet for work in the evening...  emails to co-workers, research, wifi for cell phones, browsing the company web site, open enrollment from home, etc.  The IRS allows reasonable estimates of business use.  My office can help you calculate in minutes.  SHARE WITH A FRIEND. 

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11/12/2015

November 12th, 2015

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TAX TIP OF THE DAY... 
Double your DAYCARE credit by listing a 2nd child on the form even if child #2 was not in daycare.   This quirky rule can save you $600 or more.  All children listed must be under age 13 unless disabled.  SHARE WITH A FRIEND.   

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11/11/2015

November 11th, 2015

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TAX TIP OF THE DAY... 
Deduct your morning coffee... and other snacks & beverages throughout your work day! This falls under the meals & entertainment deduction. The only requirement is that you discuss work before, during or after the coffee which is easy if you are at work!!! Record keeping... the easiest way is a daily log sheet. ​

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11/10/2015

November 10th, 2015

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TAX TIP OF THE DAY... 
If you work a part-time job in addition to your main job... deduct job-to-job travel. Keep track of your job-to-job miles for the year rather than gas receipts.

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    David S. Baboian, CPA

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  • Home
  • Services
    • What we do
    • Are we right for you?
    • $99 Jump-start
  • Client zone
    • Individual clients >
      • Identity Theft - IRS Affidavit
      • Personal Financial Statement
    • Business & rental clients >
      • Example expenses
      • Mileage log
      • Petty cash log
      • Sales tax
      • W9 for subcontractor
      • Example Profit & Loss
      • Obamacare Self-employment Ledger
    • Payroll services >
      • Employee paystub portal
      • EMPLOYER set up forms
      • EMPLOYEE set up forms for new hires
    • Web Links
  • About us
    • Contact
    • Our team
    • Dave's resume
    • Dave's bands
    • Haunted Chamber
    • Picture gallery
  • Secure email