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Want to turn a hobby into a business? Watch out for the tax rules
April 26, 2022
Categories: #hh, Business, General, Tax
Like many people, you may have dreamed of turning a hobby into a regular business. You won’t have any tax headaches if your new business is profitable. But what if the new enterprise consistently generates losses (your deductions exceed income) and you claim them on your tax return? You can generally deduct losses for expenses incurred in a bona fide business. However, the IRS may step in and say the venture is a hobby — an activity not engaged in for profit — rather than a business.
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Once you file your tax return, consider these 3 issues
April 12, 2022
Categories: #hh, Business, General, Tax Breaks, Tax Records
The tax filing deadline for 2021 tax returns is April 18 this year. After your 2021 tax return has been successfully filed with the IRS, there may still be some issues to bear in mind. Here are three considerations: 1. You can throw some tax records away now You should hang onto tax records related to your return for as long as the IRS can audit your return or assess additional taxes. The statute of limitations is generally three years after you file your return. So you can generally get rid
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2022 Q2 tax calendar: Key deadlines for businesses and other employers
March 31, 2022
Categories: #hh, Business, Deadlines, General, Tax
Here are some of the key tax-related deadlines that apply to businesses and other employers during the second quarter of 2022. Keep in mind that this list isn’t all-inclusive, so there may be additional deadlines that apply to you. Contact us to ensure you’re meeting all applicable deadlines and to learn more about the filing requirements. April 18 If you’re a calendar-year corporation, file a 2021 income tax return (Form 1120) or file for an automatic six-month extension
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Married couples filing separate tax returns: Why would they do it?
February 16, 2022
Categories: General, Home Office, Homeowners, Tax, Tax Breaks, Tax Cuts
If you’re married, you may wonder whether you should file joint or separate tax returns. The answer depends on your individual tax situation. In general, it depends on which filing status results in the lowest tax. But keep in mind that, if you and your spouse file a joint return, each of you is “jointly and severally” liable for the tax on your combined income. And you’re both equally liable for any additional tax the IRS assesses, plus interest and most penalties. That
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Help safeguard your personal information by filing your 2021 tax return early
January 20, 2022
Categories: General, Home Office, Homeowners, Tax, Tax Breaks, Tax Cuts, Tax Records
The IRS announced it is opening the 2021 individual income tax return filing season on January 24. (Business returns are already being accepted.) Even if you typically don’t file until much closer to the April deadline (or you file for an extension until October), consider filing earlier this year. Why? You can potentially protect yourself from tax identity theft — and there may be other benefits, too. How tax identity theft occurs In a tax identity theft scheme, a thief uses another
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Defer tax with a like-kind exchange
January 7, 2022
Categories: General, Homeowners, Investments, Tax, Tax Breaks, Tax Cuts
Do you want to sell commercial or investment real estate that has appreciated significantly? One way to defer a tax bill on the gain is with a Section 1031 “like-kind” exchange where you exchange the property rather than sell it. With real estate prices up in some markets (and higher resulting tax bills), the like-kind exchange strategy may be attractive. A like-kind exchange is any exchange of real property held for investment or for productive use in your trade or business (relinquished
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Gig workers should understand their tax obligations
January 6, 2022
Categories: Business, Consulting, General, Record Retention, Tax, Tax Records
The number of people engaged in the “gig” or sharing economy has grown in recent years. In an August 2021 survey, the Pew Research Center found that 16% of Americans have earned money at some time through online gig platforms. This includes providing car rides, shopping for groceries, walking dogs, performing household tasks, running errands and making deliveries from a restaurant or store. There are tax consequences for the people who perform these jobs. Basically, if you receive
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2022 Q1 tax calendar: Key deadlines for businesses and other employers
December 22, 2021
Categories: Business, General, Tax, Tax Records
Here are some of the key tax-related deadlines affecting businesses and other employers during the first quarter of 2022. Keep in mind that this list isn’t all-inclusive, so there may be additional deadlines that apply to you. Contact us to ensure you’re meeting all applicable deadlines and to learn more about the filing requirements. January 17 (The usual deadline of January 15 is a Saturday) Pay the final installment of 2021 estimated tax. Farmers and fishermen: Pay estimated
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Expansion of our Cedar Rapids Office
December 21, 2021
Categories: Business, Consulting, General
Hogan - Hansen is pleased to announce that the Marion public accounting firm of Fox & Buchheim, P.C. have joined the firm and will be serving clients from our Cedar Rapids office located at 2750 First Avenue, Suite 150. Rick Buchheim and Nancy Fox commented "We are so pleased that our accounting practice is joining the Hogan - Hansen team and their expanded service offerings. Our loyal clients in and around Marion will be very happy with the team at Hogan - Hansen. With the
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Providing a company car? Here’s how taxes are handled
December 13, 2021
Categories: Business, General, Savings, Tax, Tax Records
The use of a company vehicle is a valuable fringe benefit for owners and employees of small businesses. This perk results in tax deductions for the employer as well as tax breaks for the owners and employees using the cars. (And of course, they get the nontax benefit of getting a company car.) Plus, current tax law and IRS rules make the benefit even better than it was in the past. The rules in action Let’s say you’re the owner-employee of a corporation that’s going to provide