Barter is trading services or product in lieu of cash. Barter of products or services between businesses (e.g. subcontractors) is taxable. Barter income is based on the value of services or product received (of IRC Section 61(a)). It is reported on the tax return (IRC§ 61(a)(1)). Mr. Welemin learned this painful lesson in US Tax … Business Barter Can Bite!
Reminder, track those auto expenses. Every little bit adds up. There are two ways to calculate auto expenses: actual expense and mileage. Actual expense method includes auto maintenance cost, (oil changes, tire rotations etc), minor repairs (tires, windshield wipers, etc), auto insurance, personal property taxes, garage rent, gas, oil, fluids, depreciation, tolls, vehicle registration (tags) … Track that Mileage Expense!
In the Alphabet soup of certificates, education and licensure–CPA, EA, JD, M Tax, MBA, ATA– it can be hard to keep it all straight when trying to find a knowledgeable tax professional. Recently someone asked me, “I’ve seen the letters ‘EA”, what does it mean? How is it relevant to my situation?” The letters “EA” … What is an Enrolled Agent?