Providing a CPA's take on the business news that matter to small businesses everywhere.
Ever wonder how the 1% live?
In this issue:
A quick read on how the 1% live.
Since it’s tax time, there’s also some info on what to do if you’ve lost your receipts but want to claim the business expense on your taxes.
Upcoming issues: will be addressing tax shelters, the new tax plan and how entrepreneurs can use them to prevent their hard earned cash from being taxed.
Ever wonder how the 1% live? For most of them, it’s not all about caviar, yachts, and champagne.
There was an interesting study published by the IRS that sheds light on the financial characteristics of the 1 %.
Some of the points in this article, help debunk the stereotypes of what the “Lifestyles of the Rich & Famous” and MTV Cribs portrayed.
For most of them, it’s not all about caviar, yachts, and champagne.
Instead, the 1% are likely to have large cash balances on hand either in the way of cash equivalents or liquid investments such as treasuries or a mixture of corporate or municipal bonds.
Also, their homes, are relatively modest when compared to the percentage of home value when compared to their income.
Ever lost or misplaced a receipt but, still want to claim the business expenses?
Here’s a good read on how the IRS views that situation.
But just in case you don’t click through to the article, here’s a summary…
There are court cases involving the IRS, where claiming a business expense without a receipt was allowed by the court when challenged.
But before you think you can trash most of the support for your write-offs, there a few categories of expenses where you’ll absolutely need the receipts as supporting documentation.
When in doubt it’s better to have the receipt.
If you’re still using a shoebox, there a few tech tools that I can recommend to you that will track and sync your expenses with your accounting software.
Drop us a line, let us know if you have questions.
If you are interested in learning more about tax strategies and what we can do to help new businesses, send me an email at the below.
Rema.CPA@washingtonadvisory.com
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