I admit it. We’re in trouble.
Now that I’m saying that- you are in trouble, too. As a matter of fact, every business, every entrepreneur, every solopreneur is in trouble.
Do you know that the IRS has not changed its policies on gifts? That any business gift that costs more than $ 25 is taxable to the extent if exceeds that threshold? That is has been in place since 1981- which means at the very least the IRS should have changed the deductible limit to $ 66.
Running a business? Then, you know that money you spend for meals – or entertainment- that are business related are not fully deductible. Oh, sure, if you spend $ 100 wining and dining a client, your profits have been reduced by $ 100. Except that’s not how it appears on your Schedule C or Form 1120 or Form 1065. Because only 1/2 of that expense is deductible.
I just finished my Jewish holidays- and then was inundated with folks who failed to file their taxes on the 15th of April. And, what did they do for the ensuing six months? From what I can tell, absolutely nothing. Three of them brought the ubiquitous shoe box- you know, a year’s collection of receipts. The problem? Most of those receipts were printed via heat sensitive ink- and now, 10 to 22 months later, they are a mess of grey blobs, having faded to obscurity.