Business Accounting - Vyde

Top 10 Things You Should Do If You File a Corporate Business Tax Extension

If you filed a corporate business tax extension this year, you now have an additional five or six months to file your taxes, depending on when your original tax deadline was. Most corporate business tax extension requests allow a business owner until October 15th file taxes with the IRS. Some tax extensions are only valid until September 15th if they are operating based on a calendar year, rather than a fiscal year.

Assuming you’ve already sent your Form 7004 to the IRS requesting an extension, here’s what you need to do next:

Determine your tax payment and submit it to the IRS before April 15th. If your business bookkeeping is up to date, you should be able to determine your payment total by multiplying your taxable income by your current tax rate.
Subtract any quarterly estimated tax payments you have already made throughout the year from your tax payment. It is best to submit your tax payment and your tax extension request at the same time.
Wait for an approval from the IRS. Unlike a personal tax extension request, a corporate business tax extension must be approved before proceeding. The IRS will generally approve or deny your request within 24 hours of submitting your corporate business tax extension paperwork.
Check to see if you need to file a state tax extension form as well. If you don’t owe any state taxes, you do not need to file an extension form. Click here for specific instructions on filing a personal tax extension in your state. In many cases, unless you owe state taxes, your federal automatic extension can be used to extend your state return(s) as well.
If you are not able to pay your entire tax bill or did not submit any taxes due by the April 15th deadline, contact the IRS about setting up a payment or installment plan.
Small businesses with employees can apply for an in-Business Trust Fund Express installment agreement. Find out if you qualify here.
If you haven’t already, start preparing your tax return now. If you filed a corporate business tax extension but don’t necessarily need the full five or six months, it is best to get your return completed as soon as possible.
If your corporate business tax extension request happened to be rejected by the IRS, they will notify you. Your request may be rejected for various reasons including a recent name change, business type change, if you moved your office, or entered your Tax Identification Number incorrectly. You will need to make any corrections on your tax extension request and resubmit.
Hire a professional. If you’re behind on your medium or small business bookkeeping and taxes, a professional accountant can help you get caught up, file your taxes by your extended deadline, and maintain current records for the tax year ahead.
Submit your tax return by the September or October 15th deadline. If you plan to e-file, your return must be submitted by midnight; if you plan to mail your tax return to the IRS, it will need to be postmarked by the due date.

Filing a corporate business tax extension is can be a complicated process, depending on your business entity type and the amount of tax documents you need to catch up on. If you still have questions about your personal tax extension, contact Vyde; we can help.

Q&A: My 6 month extension on my corporate business taxes is due on 9/15. Help!

If you filed a 6 month tax extension with the IRS for your corporate business taxes back in April, it probably seemed like October 15th was eons away. However, that rapidly approaching October 15th deadline may have you feeling a little stressed out. If you filed a tax extension and still haven’t finished your tax return, here’s what you need to do:

If you owe a tax bill to the IRS, make sure you paid it when you submitted your 6 month corporate business tax extension. If you didn’t pay your tax bill then, that is the most important thing to take care of. The sooner you make that payment to the IRS, the less penalties and interest you will have to pay.
Start your return now. Don’t wait until October 14th to start on your tax return and then rush through it. Give yourself time to gather the proper documents and file your corporate business taxes accurately. Corporate business taxes can get complicated in a hurry with multiple forms to fill out; it’s best to take your time and do it right the first time so that you don’t have to worry about filing an amended return later on.
E-file or send your tax return to the IRS by October 15th. The IRS does not accept e-filed tax returns after October 15th and mailed tax returns must be postmarked by this date as well.
Contact a CPA. They can help you gather needed tax information, accurately fill out your tax return, and file it for you. They can even help you set up a payment or installment plan with the IRS if you cannot make your full payment right away. Vyde accountants can help you file your corporate business taxes with the IRS before the October 15th deadline. Contact an accountant with any questions you may have about your tax extension.

The Top 10 Tax Deductions for Realtors & Real Estate Agents

Almost everything you buy for your real estate agency is tax deductible, as long as it is ordinary, necessary, and reasonable. The great thing about spending all that money on your real estate agency throughout the year is that the expenses can be subtracted from your taxable income at the end of the year and can really help you out during tax season. So just what is tax deductible when it comes to being a realtor ?

Top 10 Common Tax Deductions from the Real Estate Pros:

Car Deductions. Undoubtedly the single most commonly claimed tax deduction for all small businesses — but especially for real estate agents. While you can’t deduct your drive to and from the office, all the other driving you do for your real estate business is deductible, like driving clients to see homes or putting up signs. We talked more about how to track mileage and deduct those expenses, here.

Office Expenses and Supplies. The great thing about real estate is that you’re not stuck behind a desk all day, yet you still have plenty of desk work to keep you busy. Any office supplies you purchase — from post-it notes to printer ink to a new office chair — is tax deductible. Don’t overlook the big items either, like office rent, utilities, and renter’s insurance. If you work from home, you will claim a home office on your taxes and your deductions may be calculated differently.

Professional Services. Any fees you pay for consulting, accounting, and legal advice. can be deducted, as long as they are directly related to your business. This includes networking groups.

Travel. When you go out of town for real estate, you can deduct airfare, taxi rides, train tickets, and other transportation at 100%. You can also deduct hotel/lodging expenses at that rate. However, only 50% of your meals and entertainment can be deducted for business travel, but if your trip is well planned you may be able to squeeze in a little fun while you’re away.

Insurance. If you have business liability insurance or insurance on your business property, it is tax deductible. If your office is in your home, only a portion of your homeowner’s insurance is deductible. If you are completely self-employed, you can also deduct 100% of your health insurance premiums.

Meals and Entertainment. Expounding on deduction 4 above, meals and entertainment can be deducted at 50% only if a serious business conversation took place before, during, or after the event.

Advertising Expenses. Any money you spend to promote your real estate agency is tax deductible. This includes business cards, website creation, website design, website hosting, promotional signs and billboards, balloons, open house costs, promotional events and/or booths, and home demonstrations. Keep close track of advertising expenses; they add up quickly in real estate!

Computer Software. Any leased or purchase software for your real estate business is tax deductible. Microsoft Office to QuickBooks to Adobe Creative Cloud, as well as software, can be deductible.

Education Expenses. Any money you spend to further your knowledge or skills in the real estate business is tax deductible. Whether you take an online class, enroll in a college course, take a mandatory certification or CE (real estate continuing education), or subscribe to a real estate magazine, you can deduct the money spent on improving yourself professionally.

Cell Phone. It’s no surprise that realtors use their phones perhaps more than many other small business owners. They’re constantly connecting with clients, brokers, home owners, home buyers, coworkers, and lenders. Calculate the percentage of time you use your phone for business and use that number to determine the deductible portion of your phone bill. If you have a smart phone, you’re likely using your phone for business even more to research addresses, neighborhoods, and mapping home visits with clients.

Realtors and brokers have hundreds of tax deductions available to them. We’d love to help you with your real estate tax deductions; give us a call today.

Blogger FAQ

We’ve spent the past few months sponsoring blogging conferences and have thoroughly enjoyed chatting tax, accounting, and best blogging practices with all the conference attendees.

There were so many great questions, that we wanted to make sure all of our bloggers had a chance to learn. We’ve rounded up those that seemed to be hot topics and put them together in a Blogger FAQ. Here at Mazuma the only thing we love more than tax season and bookkeeping is helping our blogger clients be financially sound!

Here’s to another great year of growing your blog and your business!

Want a FREE Tax & Accounting for Bloggers 101 e-course? Check it out here.

Check out our other Tax & Accounting Blogger FAQ:

What is the biggest tax mistake bloggers make?

How do I figure out if I deduct all or part of my new computer?

What potential business expenses might I have as a blogger?

If I have an LLC, must I pay for all my business expenses with my business account?

What do you suggest bloggers do when given free stuff as compensation?

Can I count digital products I give away for review as expenses?

What can I deduct for this blog conference? Are clothes deductible?

What is the best way to keep track of the little expenses that add up over the year?

What percentage of my work time do you recommend I spend on accounting?

How Do I Figure Out if I Deduct All or Part of My New Computer?

Q: How do I figure out if I deduct all or part of my new computer?

A:Some of the most frequently asked questions we receive are about deductions. And when it comes to bloggers, how to deduct technology, like cell phones, tablets, and computers is at the top of the list. That makes sense, because your phone, camera, cell phone and computer are at the heart of how you get your posts written and your work done.

So how do you figure out if you can deduct that computer? And if so, how much?

IRS Publication 529 (2014) gives us all the details on Miscellaneous Deductions, but here’s the general idea.

First, you need to establish that computer is necessary or a convenience to completing your work. You’re a blogger, so that’s pretty easy to establish- without it, you’re not going to get your blog posts up very easily.

Second, you’ll have to figure out what depreciation method you should use. That depends on whether you meet the “more-than-50%-use test”.

According to the IRS Publication 529 (2014):

“…You meet this test if you use the computer more than 50% in your work. If you meet this test, you can claim accelerated depreciation under the General Depreciation System (GDS). In addition, you may be able to take the section 179 deduction for the year you place the item in service.”

…If you do not meet the more-than-50%-use test, you are limited to the straight line method of depreciation under the Alternative Depreciation System…”

Have more questions regarding technology deductions? Looking for more tax tips for bloggers? You’ve come to the right place. Check out our FREE Taxes & Accounting for Bloggers 101. You’ll find useful tips and ideas on making your blog finances a breeze. Still have questions or want to hire an expert? We can help with that too.

Check out our other Tax & Accounting FAQs for bloggers here:

What is the biggest tax mistake bloggers make?

How do I figure out if I deduct all or part of my new computer?

If I have an LLC, must I pay for all my business expenses with my business account?

Can I count digital products I give away for review as expenses?

What can I deduct for this blog conference? Are clothes deductible?

What is the best way to keep track of the little expenses that add up over the year?

What potential business expenses might I have as a blogger?

What do you suggest bloggers do when given free stuff as compensation?

What is the Best Way to Keep Track of the Little Expenses That Add Up Over the Year?

Q: What is the best way to keep track of the little expenses that add up over the year?

A: A purple envelope. We’re a little biased around here and believe that a Vyde Purple Envelope is the best way to track expenses. However, any color of envelope will do.

There’s essentially 2 parts of tracking expenses.

Keep your receipts. You’ll want them as reference points in case your small business bookkeeping method or spreadsheet tracking fall behind. Plus, you’ll need to keep them in case you’re audited by the IRS.
Getting the info from those receipts into a spreadsheet of some form so we can see how much you spent and where. Then we start figuring out where to take deductions and how much.

Even if you don’t use an envelope system, we’d recommend keeping up on tracking expenses and keeping your receipts. Checking in at least once a month on your financial health is key for any business. It’s easier to correct overspending or save so you have enough to cover your expenses or taxes rathe than be surprised later.

If a spreadsheet isn’t your style, go old school. Use a mileage book to keep track of trips or errands for your business. Envelopes or a simple expandable file folder for receipts are great to hold and/or categorize receipts by type or month.

Looking for more tax tips for bloggers? You’ve come to the right place. Check out our FREE Taxes & Accounting for Bloggers 101. You’ll find useful tips and ideas on making your blog finances a breeze. Still have questions or want to hire an expert? We can help with that too.

Check out our other Tax & Accounting FAQs for bloggers here:

What is the biggest tax mistake bloggers make?

How do I figure out if I deduct all or part of my new computer?

If I have an LLC, must I pay for all my business expenses with my business account?

Can I count digital products I give away for review as expenses?

What can I deduct for this blog conference? Are clothes deductible?

What is the best way to keep track of the little expenses that add up over the year?

What potential business expenses might I have as a blogger?

What do you suggest bloggers do when given free stuff as compensation?

What percentage of my work time do you recommend I spend on accounting?

What are Known Business Expenses for Bloggers?

Q: What are known business expenses for bloggers?

A: One way to increase your blog profits is to sit down and make a list of all your known expenses for the year. It will take about 10 minutes, but it can help you save quite a few dollars and make sure you have plenty of green saved to cover your costs.

Here’s an accountant’s list of potential business expenses for bloggers:

Domain name and registration fees
Internet access fees
Font, photo, or music downloads for your site. (Music? We know. But there are quite a few professional photographer sites out there that have background music playing with their main page slideshow.)
Hosting fees
A portion of your computer, iPad, or iPhone (whatever tool helps you blog/do your job) Read more about deducting your computer here.
A fancy new camera or even your point and shoot.
Software programs – time management or appointment software, Photoshop, etc.
Purchasing ad space on other sites and blogs.
Self-sponsored giveaways
SEO services
Books, magazines, online subscriptions that relate to your blogging topic
Transportation to blog conferences, blogger meet-ups and the hotel fees that go along with it.
Up to 50% of dining charges that are blog-related – meals while you’re at a blog conference, coffee dates, etc.
Blogging conference attendance fees
E-book purchases, online class fees – if it helps you learn more about your blog topic or business – it counts!
New office furniture
Marketing materials – business cards, letterhead, etc.
Fees for professional licenses – maybe you blog about hair and you’ve got fees to keep up your stylist license.
Giving away products and services
Mileage – if you’re running errands that are blog-related, keep track! (i.e. you sell product that you ship to your customers – those trips to post office count)

Looking for more tax and catch-up bookkeeping tips for bloggers? You’ve come to the right place. Check out our FREE Taxes & Accounting for Bloggers 101. You’ll find useful tips and ideas on making your blog finances a breeze. Still have questions or want to hire an expert? We can help with that too.

Check out our other Tax & Accounting FAQs for bloggers here:

What is the biggest tax mistake bloggers make?

How do I figure out if I deduct all or part of my new computer?

If I have an LLC, must I pay for all my business expenses with my business account?

Can I count digital products I give away for review as expenses?

What can I deduct for this blog conference? Are clothes deductible?

What is the best way to keep track of the little expenses that add up over the year?

What potential business expenses might I have as a blogger?

What do you suggest bloggers do when given free stuff as compensation?

What percentage of my work time do you recommend I spend on accounting?

Digital Products for Review: Are Product Samples Tax Deductible?

Q: Can I count product samples or digital products I give away for review as an expense?

A: Yes. But there are some qualifying factors you’ll need to meet to do so.

1. If it relates to business you reasonably expect to gain in the future, you can usually deduct the cost of institutional or “good will” advertising that is meant to keep your name before the public.

If you gave away digital product so it could be reviewed and your product and/or name will be kept in front of potential customers, then you meet the requirement.

Examples of good will or institutional advertising include:

advertisements that encourage people to contribute to charities, such as the Red Cross or similar causes
having your own business sponsor a Little League baseball team, bowling team, or golf tournament
giving away product samples
holding contests and giving away prizes

2. The amount you expense has to be actual dollars. Time and labor that you give away as an advertising expense doesn’t count – so the time you spend reviewing other people’s product can’t be a deduction, nor can the time you spent in creating the digital product. Only the cost in dollars, or the price of the actual product, can be deducted.

Check out our other Tax & Accounting FAQs for bloggers here:

What is the biggest tax mistake bloggers make?

How do I figure out if I deduct all or part of my new computer?

If I have an LLC, must I pay for all my business expenses with my business account?

Can I count digital products I give away for review as expenses?

What can I deduct for this blog conference? Are clothes deductible?

What is the best way to keep track of the little expenses that add up over the year?

What potential business expenses might I have as a blogger?

What do you suggest bloggers do when given free stuff as compensation?

What percentage of my work time do you recommend I spend on accounting?

If I Have an LLC, Must I Pay for All My Business Expenses with My Business Account?

Q: If I have a LLC, must I pay for all my business expenses with my business account?

A: That’s a good question. But lets talk about best practices first and see if that doesn’t clear it up.

No matter what type of business you have – LLC, corporation, or sole proprietorship – an accountant or financial business advisor will usually recommend that you have a separate business account.

There’s a few reasons for this. First, it simplifies things by keeping business and personal finances separate. Less mingling means less confusion and less paperwork come tax time.

Sure, we could track all the money back and forth and have receipts and documentation for how the money was spent and from which account, but you can eliminate the hassle and the headache if you just stick with funding business activities from the business account.

Second, when you mingle your accounts you’re weakening the legal liability protection an LLC provides. With an LLC, the courts basically consider you and your LLC two separate entities. This is a huge advantage if you’re taken to court. Someone can sue your business, but they won’t be able to sue you personally, unless you’ve personally guaranteed something.

If you mingle your business and personal accounts, the courts could potentially go after you as an individual, citing that the fact that it looks less like you’re running a separate entity and more like your personal finances and business account are one and the same.

Check out our other Tax & Accounting FAQs for bloggers here:

What is the biggest tax mistake bloggers make?

How do I figure out if I deduct all or part of my new computer?

If I have an LLC, must I pay for all my business expenses with my business account?

Can I count digital products I give away for review as expenses?

What can I deduct for this blog conference? Are clothes deductible?

What is the best way to keep track of the little expenses that add up over the year?

What potential business expenses might I have as a blogger?

What do you suggest bloggers do when given free stuff as compensation?

What percentage of my work time do you recommend I spend on accounting?

Interested in Learning More?

Schedule a free consultation with our team!

Accounting & Taxes for Bloggers 101: Free Course

Most bloggers focus their time and creative energy on their actual blog posts and ideas, but some neglect the “business” of blogging. Accounting & taxes for bloggers can be especially overwhelming. To help, we’ve put together a FREE Accounting & Taxes 101 Course, just for bloggers. It’s simple and straightforward and provides you with what you need to know to better manage your blogger business.

You don’t have to worry or dread the business aspect of your blog for another minute! The following articles will take your through accounting & taxes for bloggers.

Accounting for Bloggers

Accounting 101 for Bloggers

3 Blogger Accounting Tips to Increase Blog Profits

I’m a Blogger. How do I Legally Operate a Giveaway or Contest on my Blog?

I’m a Blogger. Can I Pay my Family for Their Help?

I’m a Blogger. How Do I Pay my Employees?

Taxes for Bloggers

Top 20 Items Bloggers can Deduct on their Taxes

I’m a Blogger. Does the IRS Consider my Blog a Business or a Hobby?

Do I Have to Report My Blogging Income? What if I Chance it?

I’m a Blogger. Can I Deduct Hosting, Web, and Design Fees?

I’m a Blogger. Can I Deduct Conference Registration Fees, Travel, and Meals?

How Does the IRS View Sponsored Blog Posts?

Do you have any other accounting for tax questions about your blog you’d like answered? Give us a call, send us an email, or let us know on our Facebook page and we’ll be sure to offer professional accounting advice from one of our certified Vyde accountants.

Resources

Category: Business Accounting

Top 10 Things You Should Do If You File a Corporate Business Tax Extension

Assuming you’ve already sent your Form 7004 to the IRS requesting an extension, here’s what you need to do next:

Q&A: My 6 month extension on my corporate business taxes is due on 9/15. Help!

The Top 10 Tax Deductions for Realtors & Real Estate Agents

Top 10 Common Tax Deductions from the Real Estate Pros:

Blogger FAQ

Check out our other Tax & Accounting Blogger FAQ:

How Do I Figure Out if I Deduct All or Part of My New Computer?

What is the Best Way to Keep Track of the Little Expenses That Add Up Over the Year?

What are Known Business Expenses for Bloggers?

Digital Products for Review: Are Product Samples Tax Deductible?

If I Have an LLC, Must I Pay for All My Business Expenses with My Business Account?

If I Have an LLC, Must I Pay for All My Business Expenses with My Business Account?

Check out our other Tax & Accounting FAQs for bloggers here:

Interested in Learning More?

Accounting & Taxes for Bloggers 101: Free Course

Accounting for Bloggers

Taxes for Bloggers

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