Is your activity a business or a hobby? It’s important to know because if the IRS views your activity as a hobby rather than as a business, your tax deductions for business-type expenses are subject to certain limitations. Business Versus Hobby To qualify as a business, an activity must be conducted for the primary purpose […]
Are There Advantages to Owning a Second Home?
Whatever the location, size, or value of a second home, certain tax advantages are built in. However, your opportunity to benefit from them depends on how you use the property. Personal Use Both property taxes and mortgage interest are as deductible for a second home as they are for your primary residence — and are […]
Protect Your Finances – Plan Today for an Emergency Tomorrow by Organizing Your Records Now
No one expects to be the victim of a disaster, but every year, people find themselves in the midst of fires, floods, earthquakes, and other catastrophic events, with little, if any, time to prepare. With the fires and heavy rainfall that has hit California recently, it’s best to be prepared. And, every year, personal and […]
Get a Tax Credit when You Install a Home Renewable Energy System
Thinking about installing a renewable energy system in your residence? Uncle Sam offers individual taxpayers a federal income-tax credit equal to 30% of the cost of qualified residential energy-efficient property (REEP). What Systems Qualify? Credit-eligible property includes: Solar electric Solar water heating Geothermal heat pump (uses ground or ground water as a thermal energy source […]
What Start-Up Costs Can You Deduct?
Starting a new business is an exciting prospect but there are many serious financial and tax implications that must be considered in order to be successful. Make sure you work with an Orange County, CPA firm that understands the needs of local businesses and can help a business that incorporates in California. Launching a new […]
Why Dental Work isn’t Covered by Medical Insurance
NBC’s Nicola Spector takes a look at why dental work is not covered under medical insurance. She notes modern dentistry’s roots are in the barbershop rather than more traditional medical practice. Until the nineteenth century, dentistry was practiced in the same chair in which men got their hair cut and their beards trimmed. Dr. Gary […]