I’m a Service Company and Formed an LLC. Should I Make an S Corporation Election?

I’m a Service Company and Formed an LLC. Should I Make an S Corporation Election By Stephen J. Ganns, CPA{2:42 minutes to read} Twenty years ago, your choices when forming a company were basically to incorporate or not. Now we have an entity called LLC. However, the IRS does not recognize LLCs as business entities.

  • A 1-person LLC files as if it were a sole proprietor.
  • A multiple person LLC (or LLP) files as a partnership.

LLCs  and LLPs can, however, elect to be taxed as a corporation, which then puts them into the situation where the owners must decide if they are going to be a regular C corporation or an S corporation. Continue reading


Job Hunting and the IRS

Job Hunting and the IRS By Stephen J. Ganns{3:18 minutes to read}  

If you’re looking for a job, surprisingly, some of the expenses may be deductible. The IRS allows a deduction for searching for a new job, however, as always, there are some restrictions.

Some of the costs or expenses you can deduct are:

  • Resume – all costs involved in preparing, printing and mailing resumes
  • Travel –  to look for jobs in another city; also includes local travel, subways or metros, taxis
  • Overnight stay expenses for interview purposes
  • Placement agency fees. 

Continue reading

3 Simple Tax Effects of Divorce and Separation

3 Simple Tax Effects of Divorce and Separation By Stephen J. Ganns{3:00 minutes to read} We all know one of the most significant, life changing events many people go through is separation or divorce. At that time, income taxes may not be your number one priority, but here are some quick tips to remember as you navigate these waters.

Child Support

If you are paying child support, it is not deductible on your tax return. People often get confused by this, but if you think it through, it’s pretty simple. When a married couple buys clothing or school supplies for their children, they cannot deduct those purchases, so just because you give those funds to an ex-spouse doesn’t make them deductible. Continue reading

Are You Keeping Track of Your Auto Expenses in Writing?

Are You Keeping Track of Your Auto Expenses in Writing By Stephen J. Ganns{3:00 minutes to read}  If you own a small business there is a good chance that you are using a personal automobile for that business. In fact, you may even have purchased the automobile through the small business.

In either case, you are now faced with the daunting task of keeping proper records. The IRS demands that in order to deduct automobile expenses for a business you must have WRITTEN documentation, this documentation must be kept contemporaneously at or around the time of the expense. Continue reading

Letter from the IRS? Don’t Panic!

Letter from the IRS? Don't Panic! By Stephen J. Ganns, CPA{3:48 minutes to read} The IRS mails many notices and letters to taxpayers each year. There are a variety of reasons why this might happen. Here are some things you should know in case you receive one.

First, do not panic. You can often take care of any notice by simply responding to it. The IRS notice will usually be about a specific issue on your Federal tax return and/or tax account, such as:  Continue reading

If You Missed the Tax Deadline, Don’t Fret!

If You Missed the Tax Deadline, Don't Fret! By Stephen J. Ganns, CPA{2:42 minutes to read} For whatever reason, you did not file your taxes on time:

  • Maybe you forgot;
  • Maybe your accountant forgot;
  • Maybe you just don’t care.

Well, you should care, because it’s not best practices to fail to file a tax return if you are required to.  Continue reading

Sadly Tax Season Is Over. What to Do Now?

Sadly Tax Season Is Over. What to Do Now By Stephen Ganns{3:48 minutes to read} So you visited with your tax preparer and hopefully they gave you some good advice.  Now it’s time to put some of that advice into action.

When it’s not tax time, there are things that all taxpayers should do in order to alleviate their tax burden for the next year.  Continue reading

Does Net Investment Income Tax Apply to You?

Does Net Investment Income Tax Apply to You? by Stephen J Ganns{2:12 minutes to read} As many of you know, in 2013 a new tax came into being. It is called the Net Investment Income Tax.

This is a tax on investment income, at a rate of 3.8%, on the lesser of either your net investment income or the amount by which your modified adjusted gross income exceeds a threshold based on your filing status.  Continue reading

A Refresher on Capital Gains and Losses

A Refresher on Capital Gains & Losses by Stephen J. Ganns, CPA{3:54 minutes to read}  Most taxpayers are aware of capital gains and losses, because somewhere along the way they might have sold some stocks and/or bonds. Just to clarify a little more about what capital gains/losses are, and what is reportable and not, I offer the following:

Capital Assets

Capital assets include property such as: Continue reading