The "standard deduction" is a deduction all taxpayers are entitled to. The deduction reduces taxable income.
It's a holiday week, so I'm re-posting popular blog posts from the past. This post from 2014 talks about a Tax Court case where a taxpayer took a home-office deduction even though they didn't meet the strict interpretation of the "exclusive use" test ... and the Court sided with the taxpayer. ----- Originally published August 12, [...]
One mistake I see small businesses make with budgeting is: not accounting for the owner's salary. It seems like an obvious thing to include, but I've seen many small businesses forget that the owner will need to take money out from time to time.
As with almost anything I discuss on this blog, the answer to the question posed in the title is: "it depends." Quicken works fine for small businesses with simple recordkeeping needs, but it quickly gets overwhelmed by more-complex situations.
In the last couple of weeks, I've had multiple clients call in a panic because they received a Form 5498. For some reason, these forms seem to be coming late - one client got one after Memorial Day. The good news is, Form 5498 seldom directly affects the tax return.