Author: Joanne

Barter Transactions – Four Facts About Bartering Via irs.gov

Barter Transactions – Four Facts About Bartering : In today’s economy, small business owners sometimes look to the oldest form of commerce – the exchange of goods and services, or bartering. The IRS wants to remind small business owners that the fair market value of property or services received through barter is taxable income. Bartering is the trading of one product or service for another. Usually there is no exchange of cash. However, the fair market value of the goods and services exchanged must be reported as income by both parties. Here are four facts about bartering that the...

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Can You Deduct Donated Services?

Can I deduct time spent volunteering? Can I deduct time donated to charity? I get these questions several times every tax season from small business owners that are in the service industry and decide to donate their time to a worthy cause. One would think that if I donate my time I should be able to deduct my normal per hour rate that I would have made if this work would have been done for a “true client”.  Most business owners look at the situation as that I “would have” made $1000 if I billed a client for that 10 hours of my time, and since I am losing out on that revenue, shouldn’t I be able to get a tax deduction for it? Unfortunately you are probably not going to like my answer to the question. The answer to this question is NO for the time and services part of the donation, and YES for any out of pocket expenses incurred or mileage driven for the charitable purpose. Let me explain: While your time is valuable in your business, when you donate your time, you have not reported the “income earned” from those services / time therefore you can not take a deduction for them.  So in the above example, because the $1000 of income was not earned, received as a payment on and deposited into your business...

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Six Important Facts about Dependents and Exemptions via IRS.gov

Six Important Facts about Dependents and Exemptions Some tax rules affect every person who may have to file a federal income tax return – these rules include dependents and exemptions. Here are six important facts the IRS wants you to know about dependents and exemptions that will help you file your 2010 tax return. Exemptions reduce your taxable income. There are two types of exemptions: personal exemptions and exemptions for dependents. For each exemption you can deduct $3,650 on your 2010 tax return. Your spouse is never considered your dependent. On a joint return, you may claim one exemption...

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Where are all my Bank Reconciliations?

One of the minor flaws of Quickbooks Pro is the fact you can only access the most recent bank reconciliation. Of course when you are first deciding on what version to purchase, that is not one of the options even discussed or compared. So what happens is that you go along your merry way maintaining your accounting records in the QuickBooks Pro software. You are reconciling each month with out a glitch, good job!!    Did you print out a hard copy of your bank reconciliation?   Most will probably say no.  Whether is it just they didn’t want to bother, or they are going “GREEN”,  the reconciliation report was never printed. The problem is Quickbooks Pro only saves the most recent reconciliation. So you can never go back and view a reconciliation report for more that a month back. In Quickbooks Premier you can always access all previous bank reconciliations you have completed. If you don’t wish to pay the extra money and upgrade to the Premier version, here is your work around. In Quickbooks, when ever you call up any report; under the file menu there is a “save as pdf” menu option.  I recommend when you have reconciled for the month you choose the option to view the detailed report.  Once the report is on the screen;  you then choose the “save as pdf” option in...

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