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Thinking of Renting Your Home, There are Tax Consequences, SFS Tax, SFS Tax and Accounting, Woman Thinking, Window, Urban Scene, Living Room, Sofa, Chair

Thinking of Renting Your Home?

There are Tax Consequences. With the rise of Airbnb (along with hotel prices), it’s not a surprising trend. Homeowners looking to earn some extra income are renting out their homes to short-term visitors. In August 2017, Business Insider reported that Airbnb had 4 million listings. That’s more than the combined total of all top five hotel brands. At the same time that short-term rentals have exploded, long-term renting has also been on the rise. More people are choosing to rent their homes instead of owning...

July 31, 2018Read more...
Suing over SALT, Could we see a reversal on the State and Local Tax Deduction Cap, SFS Tax, SFS Tax and Accounting Services, law books, law libraries

Suing Over SALT?

Could We See a Reversal of the SALT Deduction Cap?On July 17, four states filed suit against the federal government over the Tax Cuts & Jobs Act (TCJA) reduction of the state and local tax deduction. The TCJA limited the deduction to $10,000 per year for all state and local property, income, or sales tax. This new cap is going to hit certain states harder than others. While New York, New Jersey, Connecticut, and Maryland brought the suit, residents of other high-tax states...

July 26, 2018Read more...
Are You a Favored Business, The New 20% Pass Through Deduction can Make a Big Difference in Your Tax Bill, SFS Tax, SFS Tax and Accounting, Ball of Money, Silhouette, Loking for Tax Favored Status

Are You a Favored Business?

The New 20% Pass-Through Deduction Can Make a Big Difference in Your Tax Bill. One of the winners from the Tax Cuts and Jobs Act of 2017 are pass-through businesses… but only at certain income levels, and then for only certain types of businesses. What’s the Deal? New tax code Section 199A creates a totally uncomplicated 20% tax deduction on qualified business income if you operate a sole proprietorship, partnership, an LLC or an S corporation and you: Are married filing...

July 24, 2018Read more...
Is it a Hot Dog, a Sandwich, or a Flying Superhero? National Hot Dog Day, Taxes & Life as We Know It- hot dog graphic

Is it a Hot Dog, a Sandwich, or a Flying Superhero? National Hot Dog Day, Taxes & Life as We Know It

As we reflect on the ubiquitousness of hot dogs in American life – they are all over our sports stadiums, ensconced in our movie theaters, and popping up at food carts dotting our urban streets –  our minds (of course) turn toward taxes. It may surprise you that in New York, where I hail from, hot dogs were the subject of a heated tax debate. Hot Dog as a Sandwich Sandwiches in New York are a sales-taxable item. Therefore, if a hot dog...

July 18, 2018Read more...
What is the Sharing Economy and Why Should I Care, SFS Tax, SFS Tax and Accounting Services, woman working, woman in glasses, side ponytail, brunette, laptop, paintbrushes, colored pencils

What is the “Sharing Economy” and Why Should I Care?

Ever thought about becoming an Uber driver part-time? How about renting out a spare bedroom in your home? Maybe offering your dog walking services via Craigslist? Any of these actions would put you in what the IRS refers to as the “sharing economy.”   What is the Sharing Economy? Although “sharing” can imply the word “free,” it is not what IRS means when they use the phrase. The official explanation of the term on the IRS website is: “…the sharing economy allows individuals and groups...

July 18, 2018Read more...
Look Out, The Taxes are Coming, Supreme Court Decision Opens the Door for State and Local Internet Sales Taxes, SFS Tax, Woman Shopping Online, Credit Card, Gold Card

Look Out! The Taxes are Coming…

Supreme Court Decision Opens the Door for State & Local Internet Sales TaxesThings are about to change in the realm of state and local taxes and Internet purchases, thanks to the recent U.S. Supreme Court decision on South Dakota vs. Wayfair, Inc. But First, Some Background… In order to understand the wide-reaching impacts of this decision, you need to know a little bit about how this case came to be. Currently, many smaller businesses generally do not charge sales tax to customers in...

July 12, 2018Read more...
Paycheck Checkup, SFS Tax, paycheck, stethoscope, red background

Did You Owe Taxes this Year? You Need a Paycheck Checkup!

If you wrote a check to the IRS in April for 2017 taxes, there’s a good chance you could be doing it again for 2018 – for an even bigger amount. Not only that, but the IRS warns that if you underpay your taxes too much, penalties and interest will apply. Unless, of course, you take evasive action now. The best way to find out what you need to do with a paycheck checkup. An Enrolled Agent (EA) can look at your last...

July 10, 2018Read more...
It All Started with Taxes: How A Giant Tea Party Led to Independence Day as We Know It. 

It All Started with a Tea Party

It was probably cold the night of December 16, 1773. Three ships – the Beaver, the Dartmouth, and the Eleanor – were moored at Griffin’s Wharf in Boston Harbor. They had just completed a long journey across the Atlantic. Onboard was 92,000 pounds of tea in 340 chests… approximately 18.5 million cups of tea. All of it had been imported by the British East India Tea Company. At about 7 pm on that winter’s eve, the Sons of Liberty, some disguised as Native...

July 3, 2018Read more...
Note to Business Owners, It Can be Costly to Ignore 1099 Requirements, SFS Tax, Woman in Business Dress, Ipad, windows, urban environment

It Can be Costly to Ignore 1099 Requirements

With changes and updates happening to the tax law continually, it can be hard to stay up-to-date. For business owners and 1099s, though, it’s critical to get it right. Penalties can go into the five-digit territory – not something you need… ever! Most business owners I know work hard every day to take care of their businesses. As you may already know, business owners must file Form-1099-MISC to each vendor or subcontractor to whom they have paid $600 or more in services, rents,...

June 28, 2018Read more...
Say Goodbye to Unreimbursed Employee Expenses, SFS Tax, SFS Tax and Accounting Services, Woman biting pencil, yellow pencil, colored pencils, laptop, office window

Say Goodbye to Unreimbursed Employee Expenses

Medical professionals paying out of pocket for their uniforms. Road warriors who don’t get the federal mileage rate from their employers. Teachers buying supplies for their classrooms. All these folks can be affected by the disappearance of the unreimbursed employee expense deduction. The Tax Cuts and Jobs Act, passed into law in late December 2017, put an end to it as of the 2018 tax year. What are Unreimbursed Employee Expenses? Going to work every day comes at a cost. Some of those...

June 25, 2018Read more...