Check Up on Your Retirement Savings!

Everyone’s retirement needs may vary but the one thing that we all want is to live comfortably when we retire. Therefore, it is essential to take advantage of all the retirement saving opportunities.  Some of the things you can do are: Start early- With a long work career ahead, new hires will benefit from compounding their investments over many years. Join your employer’s 401(k)- Many employers have 401(k) plans which employees can sign up for. Also take full advantage of any employer matching. Increase your contributions into a...
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SEP Retirement Plan or Solo 401k

It is a great retirement plan for small business owners or for the self-employed. The contributions are tax deductible and so it is great for tax savings. It also has minimum or no filing requirements to the IRS. As a CPA, we can help you set up your retirement plan!
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Use Tax for Business

When an individual purchases an item within their resident state, full sales tax would be collected when the purchase is made. Use tax is similar to a sales tax. For businesses, it could be computers, equipment, or tools purchased without paying sales tax upfront. Use tax is applied when making out of state purchases where the purchaser’s resident state sales tax does not apply. The purchase can occur over the phone, mail or online. For example, San Francisco has a sale tax of 8.75% and Oregon doesn’t have a sale tax. If a business from San Francisco were to purchase equipment from Oregon, they would not pay any sales tax for Oregon but would have to pay the 8.75% use tax in San Francisco. It is the business owner’s responsibility to report and submit...
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Bookkeeping Summer Special $49.99!

We offer a special $49.99 per month to reconcile your Quickbook. Please call or email us for more details at (415) 742-5128 or sabrina@hageraccounting.com. Please mention the promotion code: BKS4999 for bookkeeping and accounting by a CPA and a Quickbook Pro Advisor!
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Top Six Tips about the Home Office Deduction From IRS

If you use your home for business, you may be able to deduct expenses for the business use of your home. If you qualify you can claim the deduction whether you rent or own your home. If you qualify for the deduction you may use either the simplified method or the regular method to claim your deduction. Here are six tips that you should know about the home office deduction. Regular and Exclusive Use.  As a general rule, you must use a part of your home regularly and exclusively for business purposes. The part of your home used for business must also be: Your principal place of business, or A place where you meet clients or customers in the normal course of business, or A separate structure not attached to your home. Examples could include a garage or a studio. Simplified Option.  If you use the simplified option, you multiply the allowable square footage of your office by a rate of $5. The maximum footage allowed is 300 square feet. This option will save you time because it simplifies how you figure and claim the deduction. It will also make it easier for you to keep records. This option does not change the criteria for who may claim a home office deduction. Regular Method.  If you use the regular method, the home office deduction includes certain costs that you paid for your home. For example, if you rent your home, part of the rent you paid may qualify. If you own your home, part of the mortgage interest, taxes and utilities you paid may qualify. The amount you can deduct usually depends on the percentage of your home used for business. Deduction Limit.  If your gross income from the business use of your home is less than your expenses, the deduction for some expenses may be limited. Self-Employed.  If you are self-employed and choose the regular method, use Form 8829, Expenses for Business Use of Your Home, to figure the amount you can deduct. You can claim your deduction using either method on Schedule C, Profit or Loss From Business. See the Schedule C instructions for how to report your deduction. Employees.  If you are an employee, you must meet additional rules to claim the deduction. For example, your business use must also be for the convenience of your employer. If you qualify, you claim the deduction on Schedule...
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