Accounting and Tax Services in Richmond, VA .

Is your income from your hobby taxable income?

Did you know that a taxpayer must report income on their tax return even it is made from a hobby? However, as a taxpayer, you must understand that there are rules on how to report the income and expenses as a business or a hobby. 1. Determine that your activity is either a business or a hobby. If a person operates a business, the person conducts the company to make a profit. Conversely, a person engages in a hobby for sport or recreation, not to make a profit. As a taxpa

Charitable Contributions Tax Deduction

As we are about to end 2017, many people will donate to charities at this time due to the holiday season. As a taxpayer, you may benefit from giving to your favorite charity, because you may be able to claim a deduction for the donation on your federal income tax return. Here are some reminders to consider: The donation must be made to a qualified charity. Gifts to individuals, political organizations, or to candidates are not deductible. As a taxpayer, you can check the s

Accounting Word of the Week: Deferred Charge

Today we are looking at deferred charge. A deferred charge is a prepaid expense that is regarded as an asset on a balance sheet. This prepaid expense is carried forward until it is actually used. Two common examples of a deferred charge is prepaid insurance and rent. It is extremely common for businesses to pay rent for a year to receive a discount. When a company prepaid’s the rent in advance, it is recorded on the balance sheet. As each month passes, the company will

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