How being late paying rent created a hospitality empire.

Did you know a billion dollar company got its start when two guys in San Francisco were late on their rent? Lets go back to 2009. Gas hovered around $2.75 a gallon and droves of music fans wept at the loss of the King of Pop. Our two heroes were struggling to come up with the funds needed to keep a roof over their head. They came up with the idea to rent three air mattresses in their modest apartment. Two men and a woman showed up, shelling out $80 each to sleep on the inflatable beds. From there, the two men created a company, AirBnB that is currently valued at over $10 billion dollars.

Being late can lead to inspiration, but it won’t do you any favors with the IRS. You may be subject to two penalties if you’re late filing your tax return and owe tax on said return. If you file your tax return more than 60 days after the due date or the extended due date, the minimum penalty for late filing is either $135 or 100% of the unpaid tax, whichever is smaller. The failure-to-pay penalty is usually 0.5% per month of your unpaid taxes. It applies for every month your taxes stay unpaid and begins increasing the day after taxes are due.

Strive Accounting and Tax Solutions can solve this problem and make sure it stays solved. Our tax program is designed to find the maximum amount of tax benefits available and ensure that your returns are filed on time and correctly. Don’t wait until you find an IRS penalty statement waiting inside your mailbox. Get in touch with one of our skilled account managers by calling 757.269.9099 or visit strivecpa.com to find out more about our many programs and options. Be sure to follow us on Twitter @Strivecpa and follow our blog to learn more savvy tips for your finances or small business.

The Homer Simpson School of Working from Home

Working from home is like calling a trick play in football – if you produce great results, you’re an innovative genius, but when distractions take over and projects stop getting done, well, you start to look like coach John McKay. Finding equilibrium between work and home life is vital to successfully managing a home office. Two ways of striking that balance are through humor and tax breaks.

Humor is the opposite of stress. According to the Mayo Clinic, there are multiple short and long-term health benefits from using laughter as a stress reliever. It’s important to schedule time in your home office where you can have some fun and get your giggle on. Whether it’s taking ten minutes every hour to listen to a comedy tape, or watching your dog chase squirrels in the backyard, scheduling time during the workday for a brief stretch of fun is vital to your work-from-home success.

Managing the financial aspect of your home office is another way to maintain a healthy work/life balance. You may be able to deduct expenses for your home office regardless of whether you rent or own. It’s important to note that eligibility for the deduction is based on whether or not you use a part of your home regularly and exclusively for business purposes. The part of you home must be the principal place of business and where you meet clients or customers in the normal course of business. It can also be a separate structure not attached to your home, like a garage or studio.

For more information on home-office tax deductions, contact a Strive Accounting and Tax Solutions account manager at 269-9099 or visit us at strivecpa.com. If you’re in need of a quick laugh, or more information about how your business can save money, check us out on Twitter @StriveCPA.

Working Smarter for You

Who wants to think about taxes? I mean seriously, you’ve got enough going on. Between closing deals and posting the latest meme from Hearsay, businesses need a better, faster, and easier way to get their accounting and tax needs. Strive Account and Tax Solutions has what you’re looking for.

Our software and system for preparing your taxes will take away any and all burdens you’ve felt before. Our clients can be anywhere in the world, and we’re still able to provide personal and professional service. In some cases, all you’ll need is a smart phone, your financial records, and an Internet connection. .

While we have the ability to serve you remotely, we firmly believe in building strong relationships with our clients. Our dedicated and knowledgeable CPAs understand the business intricacies involved in the insurance world and will maximize your tax deductions. Simply put – allowing us to take care of your accounting and tax needs gives you more time to focus on clients.

For more information, please call 757-269-9099 or visit our website at strivecpa.com/insurance. Be sure to follow us on Twitter @StriveCPA to catch the latest news regarding tax season and updates to our tax savvy blog.

What We Learned About The Great Alaskan Taco Lift

There’s an art to going the extra mile for your clients. In 2013, Taco Bell came to the aid of small Alaskan city using a little creativity and helicopter. The fair, but isolated townsfolk of Bethel, AK were tricked into believing they were to receive their very own Taco Bell location as the result of an elaborate prank. Upon hearing the story, Taco Bell choppered in 10,000 tacos and over 950 pounds of beef much to the delight of the 6,200 citizens of Bethel.

Though we’re unable to provide sustenance to taco depraved Alaskans, every member of Strive Accounting and Tax Solutions knows what it means to provide outstanding customer service. Through consistency, knowledge, and unrivaled work ethic, we’ll find and utilize every tax benefit available to your business or family. Our process removes the headaches that come hand-in-hand with tax season, such as time consuming meetings and dealing with outdated CPAs. All you’ll need for Strive to file your taxes is an internet connection and a mobile phone to snap a photo of your tax returns.

Going the extra mile is a trait we’re proud of, but, more importantly, we pride ourselves on making our client’s lives easier. For more information call (757) 269-9099 or visit strivecpa.com. Don’t forget to follow us on Twitter @StriveCPA and check out our blog – https://strivecpa.wordpress.com/.

Fish Tacos and the IRS

My first “grown up” refund was around five hundred dollars. I can’t recall the exact amount, but I know it covered half the cost of a Caribbean cruise with the fiance (then girlfriend). There’s nothing like driving a quad through the back streets of Aruba and finding a dive that serves the tastiest fish tacos this side of the northern hemisphere.

I traded two Busch Gardens tickets and the use of a 30% discount pass to have my taxes prepared back then. I probably overpaid, but it was worth all the beautiful and vivid memories. However, had I known the IRS was active on social media I might’ve been able to find useful information that could’ve got a few more bucks and maybe a fish taco for the road.

Connecting with the IRS has never been easier. They frequently post tax tips on Twitter, Facebook, and Tumblr. Their YouTube channel, IRSvideos, provides short videos covering a variety of topics that can be viewed in English, Spanish, and American Sign Language. They’re only sharing public information, and do not answer personal tax or account questions, so there’s no issue of your privacy being invaded.

If you do have individual questions about your tax or accounting needs, we’re happy to answer any and everything you could possible ask about your personal or business finances. Strive Accounting Tax Solutions specializes in serving insurance agents, real estate agents, and CrossFit affiliate owners, but we have clients from all walks of life. Call (757) 269-9099 for more information and be sure to follow us on Twitter @StriveCPA.

Tax Deductions – Hiring Your Kids Part 2

Tax Deductions – Hiring Your Kids Part 2

To hire your children and take advantage of the tax benefits, the following rules must be abided by. To find out more in regards to the additional details and regulations regarding child worker tax deductions, contact us at (757) 269-9099. Be sure to check out strivecpa.com and follow us on twitter @strivecpa.

1. Age Appropriate and Legitimate Work

Hiring a seventeen year old to answer phones, clean the office, or refill the water cooler is perfectly fine, but putting a seven year old in charge of security will not pass muster.

The job doesn’t have to be vital, merely common, accepted, helpful, and appropriate for your business. While cutting the family lawn doesn’t count, performing yard work at your place of business most certainly does.

Please note; the deductions only apply to your kids who are under the age of 18 and are your dependents. Nieces and nephews, college kids home for the summer, or the neighbor’s children do not qualify.

2. Reasonable Compensation

In terms of your taxes, it’s beneficial to pay your kids as much as possible, but you cannot shell out as much cash at you want. Only pay them the same amount you’d pay anyone else for the work performed. Be sure to have your kids fill out a time sheet and always pay by check.

3. Legal Requirements

You must own your own business and a W-4, I-9, and Employment Eligibility Verification has to be filled out prior to hiring your children. You must also fill out and file IRS form W-2 showing how much your child has been paid by your business. Lastly, be sure to fill out a job description and an employment agreement for the position.

Tax Deductions – Hiring Your Kids Part 1

Having a family while running a small business means balancing the growth of your agency with the cost of movie tickets, travel soccer, or the latest gadget every other kid in class has. Fear not, weary entrepreneur, there’s a way to keep the little ones happy and save your business some valuable coin – employ your kids.

Children provide a number of tax saving means. Hiring your kids to legitimately work for your business allows you to deduct their salaries from your business income as a business expense. If your children are under 18, you do not have to pay or withhold any FICA tax on the salary (with a few exceptions). Children must pay tax on their salary only to the extent it exceeds the standard deduction, $6,300 per year.

Check out next week’s blog to find out the rules regarding hiring your children and the tax benefits that come with it. As always, follow us on Twitter @StriveCPA or visit our website strivecpa.com/insurance to find out more information or how we can help your business.