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Numbers - Notes - Links
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Employers

You must get a new W-4 (available here):
    *  Every new hire
    *  Annually
    *  Change of withholding request
IN requires that you report all new hires (information here)
You must maintain up to date posting of employee information
    *  You do not need to purchase those posters that come in the mail
          -  free posters are available at government sites
                
Indiana Employer Posting Requirements
                 Federal Employer Posting Requirements
          -  we will provide what you need for a very small fee

Handy Info Sheets and Checklists

Individual Tax Checklist: a/k/a - The Blue Sheet!  
What to bring in for my business return?
What's Deductible on your 1040 - What's Not
Let's Talk Business Deductions

Claiming Auto Deductions
Meals & Entertainment - what's the scoop?
When a Loved One Dies
Need help? - See what all we can do for you!

Section 179 Dollar Limitation

2022 - $1,080,000  (autos have special guidelines)
The new law also expands the definition of section 179 property to allow the taxpayer to elect to include the following improvements made to nonresidential real property after the date when the property was first placed in service:
  • Qualified improvement property, which means any improvement to a building’s interior. However, improvements do not qualify if they are attributable to:
    • the enlargement of the building,
    • any elevator or escalator or
    • the internal structural framework of the building.
  • Roofs, HVAC, fire protection systems, alarm systems and security systems.
These changes apply to property placed in service in taxable years beginning after Dec. 31, 2017.

529 Plan - $1,000 refundable Indiana credit

*   MUST BE AN INDIANA PLAN
*   No income limitation
*   $1,000 per year
*   Withdrawals immediately available for qualified expenses
*   Beginning in 2018 - $10,000/year can be used for qualified private school- related expenses

Standard Business Mileage Rates

2023 - 65.5 cents
   NOTE:  18 cents per mile driven for medical 
      14 cents per mile driven for charitable organizations

History Lesson:
2022 - 58.5 cents (1/1 - 6/30)      2022 - 62.5 cents (7/1 - 12/31)
2021 - 56.0 cents                      
2020 - 57.5 cents                     2019 - 58.0 cents
2018 - 54.5 cents                       2017 - 53.5 cents                     2016 - 54.0 cents
2015 - 57.5 cents                       2014 - 56 cents                        2013 - 56.5 cents
2012 - 55.5 cents             
2011 - 51 cents (1/1 - 6/30)      2011 - 55.5 cents (7/1 - 12/31)
2010 - 50 cents                         2009 - 55 cents

Hot Topics

Entertainment is no longer a deduction - period - it's gone!
Meals: Buy from a restaurant and deduct 100% in 2021 & 2022
Not all expenses qualify for deduction - talk to us about the rules on the following (and more!)

*  Record keeping requirements
     *  Business meal receipts must have documentation of:  Cost & Attendees
         *  Purpose (must create a reasonable expectation on increasing revenues, etc)

     *  Eating at work does not make it a deduction
     *  Talking about or mentioning work issue does not make it a deduction
     *  Out-of-town meal per diems are prorated for travel times
Various limitations 
     *  Typically only 50% of deduction is allowable
     *  Transportation industry has a higher percent allowable
Not all expenses are subject to limitation

     *  2018 CHANGE - Employee meals on work site, for benefit of employer are NOW limited to 50%
     *  Holiday or special event gatherings
     *  Office snacks and drinks
 
 

Employee vs. Sub Contractor


If your subcontractor tells their preparer they were an employee but you failed to hold and pay taxes, there is a form they can complete that will allow them to only pay 1/2 (employee share) of FICA and the IRS will come back on you for your share PLUS penalties and interest.

The IRS has many factors used in the determination of classification, such as:

-  Freedom of choice on accepting assignment
-  Risk of loss if job is not completed as expected
-  Schedule control
-  Provider of tools and supplies
-  Level of instruction and oversight of how work is performed
-  Classification of others doing same activities
-  Is worker allowed to delegate
-  Number of "people" the worker earns money from

If you are on the losing end of a reclassification by the IRS, expect NO MERCY.

Sales Tax - Use Tax


If sales tax is included in the price, it must be stated at the time of sale
New exemption certificates are required each year
Audits require certificates to cover the year being reviewed
Just because tax is not charged does not mean you don't owe it
    *  Paying Sales tax is your responsiblity, failing to pay results in Use Tax Liability
Indiana holds purchaser responsible for
    *  Magazines
    *  Ebay and/or internet purchases
    *  Maintenance agreements
    *  Out of state purchases
  

Hobby or Business - The IRS Will Decide


IRS is hot on this.  If you make money from a hobby, losses are limited to the income made and only deductible for Federal (and only if you itemize), not Indiana, but income is taxable to both.

Commonly reviewed types:
    *  Racing
    *  4-H farming
    *  Flea-marketing sales
    *  Internet sales of personal items
Making money does not make it a business
Do you have reasonable expectation of activity providing your financial support
Would you continue activity even if you knew you would not make money
Do you operate it as a business

Check out more info on this on:
 
Business vs. Hobby
Any accounting, business or tax advice contained in this communication, including attachments and links, is not intended as a thorough, in-depth analysis of specific issues, nor a substitute for a formal opinion, nor is it sufficient to avoid tax-related penalties. If desired, we would be pleased to perform the requisite research and provide you with a detailed written analysis under a separate engagement.
  • Meet Our Staff
  • Services and Pricing
  • Helpful links & current news
  • Contact Us / become a client
  • Covid-19, Hot Topics & Current Numbers