Answers
The questions we get asked, answered plainly.
Everything a business owner or individual filer tends to ask us, written down once so you do not have to ask. Each answer gives the rule, an example, the mistakes we see most often, and the authority behind it.
Longer reads
Where a question deserved more than a page — worked numbers, case law, and how we handle it.
Bookkeeping
Reconciliation, cleanup, owner activity, and how transactions should actually be recorded.
18 answers
What Does a Bookkeeper Do for a Small Business?Monthly Bookkeeping Services: What Is Included?How Much Does Bookkeeping Cost for a Small Business?Catch-Up Bookkeeping for Businesses That Are BehindHow Often Should a Business Reconcile Its Bank Accounts?What Is a Chart of Accounts?Cash Basis vs. Accrual Basis AccountingWhat Is a Profit and Loss Statement?How to Read a Business Balance SheetWhat Is a General Ledger?Accounts Receivable vs. Accounts PayableHow Should Business Loans Be Recorded in Bookkeeping?How Should Owner Contributions Be Recorded?How Should Owner Distributions Be Recorded?How to Record Equipment FinancingHow to Record a Refund From a VendorHow to Record Intercompany TransactionsWhat Records Should a Small Business Keep?
Individual tax · Form 1040
Schedules, deductions, filing status, and what happens when a return is late or a balance is owed.
30 answers
What Documents Do I Need to File My Taxes?Form 1040 ExplainedWho Needs to File a Federal Income Tax Return?What Is the Standard Deduction?What Is Schedule A?What Is Schedule B?What Is Schedule C?What Is Schedule D?What Is Schedule E?What Is Schedule SE?How Are 1099-NEC Payments Taxed?How Is 1099-K Income Reported?Tax Deductions for Self-Employed IndividualsBusiness Mileage Deduction ExplainedHome Office Deduction ExplainedBusiness Meals Deduction ExplainedHow Is Rental Income Taxed?How Are Dividends Taxed?How Is Interest Income Taxed?How Are Retirement Distributions Taxed?What Is Estimated Tax?How Do Tax Extensions Work?What Is Form 1040-X?What Happens if I File My Tax Return Late?What Happens if I Owe the IRS?What Is an IRS Transcript?What Is an Identity Protection PIN?Married Filing Jointly vs. Married Filing SeparatelyHead of Household Filing Status ExplainedHow Does Owning an S Corporation Affect My Personal Tax Return?
S corporations
Compensation, basis, distributions, fixed assets, and the mistakes that show up on Form 1120-S.
17 answers
What Is an S Corporation?How Do I Elect S Corporation Status?LLC vs. S Corporation: What's the Difference?What Is Form 1120-S?When Is Form 1120-S Due?What Is Schedule K-1 for an S Corporation?How Are S Corporation Profits Taxed?How Are Shareholder Loans Recorded?Can an S Corporation Deduct Health Insurance for an Owner?How Does an S Corporation Buy a Vehicle?Section 179 for S CorporationsBonus Depreciation for S CorporationsHow Do S Corporations Handle Fixed Assets?How Should S Corporation Payroll Be Recorded?What Records Should an S Corporation Keep?Can an S Corporation Have More Than One Owner?S Corporation vs. Partnership
Partnerships · Form 1065
Capital accounts, guaranteed payments, basis, liabilities, and partners coming and going.
22 answers
What Is a Partnership for Tax Purposes?What Is Form 1065?How Is Partnership Income Taxed?How Does a Partnership K-1 Affect My Personal Taxes?When Is Form 1065 Due?How Are Partnership Profits Divided?What Are Guaranteed Payments to Partners?Are Partnership Distributions Taxable?How Should Partner Contributions Be Recorded?What Is a Partner Capital Account?What Is Partnership Basis?How Are Partnership Liabilities Allocated?How Is a Partner Loan Recorded?How Do Partners Pay Themselves?Can a Partnership Deduct Payments to Partners?What Expenses Can a Partnership Deduct?How Is Depreciation Reported by a Partnership?Section 179 for PartnershipsWhat Records Should a Partnership Keep?What Happens When a Partner Leaves?How Is the Sale of a Partnership Interest Taxed?Partnership vs. S Corporation: What's Different?
Deductions, assets & depreciation
What is deductible, when a purchase becomes an asset, and how depreciation actually works.
25 answers
What Business Expenses Are Tax Deductible?Business Expense vs. Personal ExpenseWhen Is a Purchase an Asset Instead of an Expense?What Is Depreciation?What Is Section 179?Section 179 vs. Bonus DepreciationWhat Is Bonus Depreciation?Can I Deduct a Business Vehicle?Can a Business Deduct Equipment Purchases?How Are Repairs Different From Improvements?Can a Business Deduct Rent?Can a Business Deduct Insurance?Can a Business Deduct Interest?Can a Business Deduct Legal and Professional Fees?Can a Business Deduct Accounting and Bookkeeping Fees?Can a Business Deduct Advertising?Can a Business Deduct Employee Wages?Can a Business Deduct Contractor Payments?Can a Business Deduct Travel?Can a Business Deduct Meals?Can a Business Deduct Internet Expenses?How Should Inventory Be Treated for Tax Purposes?Cost of Goods Sold ExplainedBusiness Bad Debts ExplainedHow Should a Business Record Asset Disposal?
IRS notices & tax problems
Notices, payment options, penalties, transcripts, audits, liens and levies.
15 answers
What Happens if I Ignore an IRS Notice?What Is an IRS Payment Plan?What Happens if I Cannot Pay My Taxes in Full?What Is an Offer in Compromise?What Is Currently Not Collectible Status?Can IRS Penalties Be Removed?What Happens if I Have Unfiled Tax Returns?What Is an IRS Account Transcript?IRS Audit vs. IRS NoticeWhat Records Should I Keep During an IRS Audit?What Is Form 2848 Power of Attorney?What Is Form 8821 Tax Information Authorization?How Do I Correct an Incorrect IRS Balance?What Is a Substitute for Return?IRS Lien vs. Levy: What's the Difference?
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