Well the president signed the tax cut, so we will all have an additional 2% of our wages in cash instead of paying social security tax into the system. Good thing the social security trust fund is so strong that it can easily absorb that loss of revenue. (???!!!!)Anyway here is an article by Michael Cohn in Accounting Today that discusses the cut a little:http://www.accountingtoday.com/news/Obama-Payroll-Tax-Cut-Unemployment-Benefits-Extension-61806-1.html?ET=webcpa:e2236:204199a:&st=emailCall or email me with questions. 818-317-6035 or bstonercpa@sbcglobal.net You can count on us to count for you!
Brian’s Tax Musings – Entertainment vs Business GIfts
Is it better for you to write off certain items as business gifts or Entertainment? Depends on the amount and what the item is. Business Gifts are limited to $25 a person but you can write off all of it. Entertainment is limited to a 50% deduction on the item, but no maximum. Things like restaurant gift cards or tickets to events can be either gifts or entertainment, while meals in a restaurant are entertainment only (but how often do you spend less than $50 in a restaruant for 2 people).Call me at 818-317-6035 or email me at bstonercpa@sbcglobal.net if you have any more questions.You can count on us to count for you!
Brian’s Tax Musings – Corporate Cell Phones
Hey if you are the owner of a C or S Corporation, there is some good news. If you provide your employees (including you) with a company cell phone for a business purpose (after hours phone calls, keeping in touch with clients, etc) or reimburse an employee (you for instance) the rules of accounting for personal use have been relaxed. The IRS removed the cell phone from listed property classification last year and recently provided guidance on fringe benefit use. This means a small amount of personal cell use can be considered de minimus and you don’t have to worry about reporting it.Here is more info from the IRS website:http://www.irs.gov/irb/2011-38_IRB/ar07.htmlAny questions let me know. Call at 818-317-6035 or email at bstonercpa@sbcglobal.net and we can talk about it.You can count on us to count for you!