Volodymyr Demskyy

A contractor’s invoice arrives for work on your rental property. Should it go into repairs, or does it belong with the property’s improvements? Before choosing a bookkeeping category, collect the details behind the bill. Repairs and improvements have different tax treatment The IRS generally allows deductions for repairs and maintenance that do not have to be capitalized. Costs that better a property, restore it, or adapt it to a new or different use generally must be capitalized. Those costs...

A strong sales month feels better when you already have a plan for the tax payment. Put tax reviews on your business calendar alongside payroll and billing so that filing season begins with organized information. Know when estimated payments may apply Federal taxes are generally paid as income is earned, through withholding or estimated payments. Individuals, including sole proprietors, partners, and S-corporation shareholders, generally need estimated payments if they expect to owe at least...

A busy month can leave a business owner with a full bank feed and little time to understand the numbers. A repeatable monthly close makes it easier to see what needs attention before the next payroll, vendor payment, or tax appointment. 1. Gather documents in one place Create a folder for each month and collect bank statements, credit card statements, invoices, receipts, and payroll reports. Ask your bookkeeper for a short missing-document list rather than trying to resolve questions through...