This is the best (and the ONLY best) way to enter payroll into an accounting system: Enter debits for the expenses and credits for the liabilities. Use a general journal dated on the last day of the payroll period. Let me illustrate: Account Debit Credit   DEBITS   Officer’s Salary (Corps) $50,000.00 Payroll Expense… Read More

The Internal Revenue Service frequently audits deductions for auto expenses, and the documentation requirements are fairly complex. This should not discourage you from taking all the deductions to which you are entitled, however, since we have had great success at defending auto expense deductions in IRS audits. What is important is to keep the necessary… Read More

  Many taxpayers think that because their employer reimburses them for business expenses that they cannot claim a deduction on their tax return, so they don’t even bother to try.  The truth is that you may be incurring deductible expenses above and beyond the ones being reimbursed.  If you think you don’t qualify, read on… Read More

S Corps are a popular choice for operating a small business.  But they have some peculiarities that are commonly overlooked and could dramatically impact your tax liability.  If you have an S Corp, or want one, read on. S Corp Checklist S Corps are frequently formed for the purpose of avoiding SE tax on a… Read More

In January 2006, when the 29-year old Blake MyCoskie vacationed in Argentina, he discovered the “alpargatas,” a canvas shoe worn by Argentine farmers.  He also noticed the extreme poverty and lack of shoes (particularly for children).   Inspired, he reminisced on this inspiration in a 2011 article for The Business Insider saying “….the intense pockets of… Read More

As a long-time tax preparer, I have learned that there is a special language sometimes used in dealing with the IRS. I call this language “Taxlish.” I am not encouraging the use of this language, because it can lead to problems in an IRS audit examination, but I have assembled a Lexicon that translates common… Read More

I recently wrote this letter to a client of mine who purchased a house and wanted to know what to deduct: Q:  I bought a house – what do I deduct? A:  “Dear Andrew… Congratulations on your home purchase.   Your home mortgage interest and property taxes are tax-deductible so you are now going to be… Read More

Ask Rob Kirby, CPA Santa Rosa tax and investment advice

Welcome to the  first of what I plan to be a long series of Question and Answer posts.  More than anything else, I love answering your questions.  I hope that you find these to be of value and if you have questions you would like to see featured here, please email me at Q:… Read More

Business Category

Beating the computer and avoiding an IRS audit: (Read Part 1 Here) List a Conservative Occupation Right next to your signature you are requested to list your occupation. Some occupations attract conservative and law-abiding individuals, who help keep the DIF score low for everyone who lists that occupation on their 1040. From accountants, auditors, bank… Read More