Wayne M. Davies

Small Business Tax Questions - Are You Required To Deduct Expenses This Year?

If you're a small business owner or self-employed person, what do you do if you have little or no income this year, along with substantial expenses? Do you have to report and deduct those expenses in the year in which they are paid or incurred? Or can you... Read >

Self-Employed Tax Tips - How To Pay The Right Amount Of Quarterly Estimated Tax

Do you have trouble calculating quarterly estimated tax payments? Here are some helpful tips to make the process much easier and less stressful. If you're newly self-employed and unfamiliar with the IRS' estimated tax payment schedule, here are the due... Read >

Small Business Taxes - What Is The #1 Reason You Pay Too Much Tax?

What is the Number One reason you pay too much tax? Let's brainstorm. We all pay too much tax because: 1) Our elected politicians created the complicated and convoluted monster known as the U.S. Tax Code, and this monster takes our money away. 2) Pu... Read >

Small Business Tax Tips - What's The Difference Between A Tax Deduction And A Tax Credit?

Do you understand the difference between a tax deduction and a tax credit? This story should clarify the difference. A self-employed taxpayer (let's call her Debbie) meets with her accountant to discuss her income tax return. She was quite distraught b... Read >

Summer Time Tax Savings - How To Get A Tax Deduction For Donating Used Items

The purpose of this article is to help you prepare Form 8283, Non-cash Charitable Contributions. The rules for reporting charitable contributions on your tax return are a bit tricky, so take your time as you read on. We'll start with some of the basics on... Read >

Summer Time Tax Savings - How To Properly Document Your Non-Cash Charitable Contributions

If you want to donate your old stuff instead of having a yard sale, you must make sure that what you want to donate can actually be deducted on your tax return. How do you know? Here's a simple rule to follow: If you're unsure whether your item qualifies ... Read >

Small Business Taxes - What Is Your Biggest Obstacle To Paying Less Tax?

Before I tell you the biggest obstacle to small business tax reduction, let me tell you a story. One foggy night the captain of a large ship saw what appeared to be another ship's lights approaching in the distance. The two were on a course that would mea... Read >

Tax Mistakes - Why Getting A Big Refund Is A Bad Idea

I will never forget the day that a tax client came into my office to pick up his income tax return. "How's it look?" he asked. "Well," I said, "It looks like you're getting a refund." "Great! How much?" "Oh, it's a big one," I said. "Over $5,0... Read >

Small Business Tax Tips - How To Prepare Form 4562 In 5 Simple Steps

If you buy equipment for your business such as a computer or a printer, you can deduct those items on your business income tax return. Usually that means tackling Form 4562 and entering one of the most complicated areas of tax law -- the dreaded world kno... Read >

Small Business Taxes - How To Turn Bookkeeping Boredom Into A $175 Per Hour Payday

For most small business owners and self-employed people, bookkeeping is about as much fun as a root canal. But like it or not, it must be done, otherwise you'll end up overpaying your taxes big time. Perhaps this article will help you see this tedious ... Read >

How to Prepare Form 4562 For a Sole Proprietorship

If you are a Sole Proprietor who purchased business equipment, and you'd like to deduct that purchase on your income tax return without breaking into a sweat, this article is for you. Thanks to a tax rule known as the Section 179 deduction, this article w... Read >

Small Business Tax Deductions - How To Deduct Your Next Vacation

It is perfectly legal to deduct your next vacation. Here's how to do it. To qualify for this deduction, you must meet the following two criteria: 1. You are self-employed or own a small business; 2. On your next trip, you combine business with plea... Read >

Small Business Tax Deductions - "G" Is For Gifts & Gas

Here are two valid expenses you can deduct on your small business income tax return, both beginning with the letter "G". Gifts. You can deduct the cost of gifts to customers and other business associates such as vendors, suppliers and service providers... Read >

Small Business Tax Deductions - "D" Is For "Don't Do Depreciation"

Do your eyes glaze over at the thought of those mind-numbing depreciation rules? Well, take heart, small business owner. Thanks to a tax law known as Section 179, you can probably kiss those depreciation rules good-bye. Depreciation is the name we use ... Read >