Home office eligibility

Home office deduction eligibility: Our last post dealt with why you should absolutely claim a home office deduction if eligible. Today we discuss eligibility. To be eligible, you need to use a portion of your home, exclusively as a principal place of business. Regular usage means at least 45 minutes a day, 4-5 times a …

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worthhome

Is a home office deduction worth taking?

I constantly get told that “my accountant said that taking the home office deduction isn’t worth it. In addition, it would trigger an audit.” Have you heard that? Despite what you heard, these myths are completely untrue, if you are indeed eligible for the deduction. First, it won’t trigger an audit by itself. Secondly, we …

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averagecaruse

Average Car Use Percentage by Profession

People often ask what is a reasonable percentage of mileage to deduct for various professions. Although you certainly need a mileage log – preferably by using Taxbot – here is what the courts have allowed for various professions: Anesthesiologists 39% Attorney 30% Auto Dealer 70% Cemetery plot salesmen 80% Dentist (who directed clinics) 80% Doctor …

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mileagelogs

Types of mileage logs that IRS and CRA will accept

The number one audited area is the automobile. The reason is that it is a big ticket item and deductions are greatly inflated with many people not having the proper documentation to back up these claimed deductions. Fear not, because after reading this, you won’t be one of those poor folks who have insufficient records. …

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Future proposed tax increases.

New proposed law: In order to balance the budget, there is a proposed law to have a 25% percent increase in the income tax rates. Yes, you read this correctly, In addition, there is a proposed increase in social security and Medicare of an extra 10% of salary up to $200,000 of earnings,which is up …

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Jury Pay Reimbursement

I was scheduled for jury duty today. It got me thinking. Many companies will continue to pay your salary as long as you turn over any jury pay that you received. You can get a deduction from adjusted gross income ( and not as an itemized deduction) in the year that you pay your employer …

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Why you shouldn’t donate your business car

Most people know half the rules regarding charitable contributions. Generally, if you own stock, bonds, mutual funds, real estate and certain other capital gains property that you held over one year and donate this property to a charity, you get a deduction for the properties fair market value. This isn’t what you paid but what …

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