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Murry Guy, CPA

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Watch Out for the 100% Penalty

Posted by Murry Guy, CPA on Apr 11, 2025

Some tax sins are much worse than others. An example is failing to pay over federal income and employment taxes that have been withheld from employees’ paychecks. In this situation, the IRS can assess the trust fund recovery penalty, also called the 100% penalty, against any responsible person.

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Posted in Accounting & Outsourcing

How a Business Owner's Home Office Can Result in Tax Deductions

Posted by Murry Guy, CPA on Mar 26, 2025

As a business owner, you may be eligible to claim home office tax deductions that will reduce your taxable income. However, it’s crucial to understand the IRS rules to ensure compliance and avoid potential IRS audit risks. There are two methods for claiming this tax break: the actual expense method and the simplified method. Here are answers to frequently asked questions about the tax break.

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Posted in Business Tax

Questions About Taxes and Tips? Here Are Some Answers for Employers

Posted by Murry Guy, CPA on Feb 11, 2025

Businesses in certain industries employ service workers who receive tips as a large part of their compensation. These businesses include restaurants, hotels, and salons. Compliance with federal and state tax regulations is vital if your business has employees who receive tips.

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Posted in Business Advisory

The Standard Business Mileage Rate Increased in 2025

Posted by Murry Guy, CPA on Jan 22, 2025

The nationwide price of gas is slightly higher than it was a year ago, and the 2025 optional standard mileage rate used to calculate the deductible cost of operating an automobile for business has also gone up. The IRS recently announced that the 2025 cents-per-mile rate for the business use of a car, van, pickup, or panel truck is 70 cents. In 2024, the business cents-per-mile rate was 67 cents per mile. This rate applies to gasoline and diesel-powered vehicles as well as electric and hybrid-electric vehicles.

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Posted in Business Tax

Small Business Strategy: A Heavy Vehicle Plus a Home Office Equals Tax Savings

Posted by Murry Guy, CPA on Jan 15, 2025

New and used “heavy” SUVs, pickups, and vans placed in service in 2025 are potentially eligible for big first-year depreciation write-offs. One requirement is that you use the vehicle more than 50% for business. If your business usage is between 51% and 99%, you may be able to deduct that percentage of the cost in the first year. The write-off will reduce your federal income tax bill and your self-employment tax bill, if applicable. You might get a state tax income deduction too.

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Posted in Business Tax

What Are Retained Earnings —  and Why Do They Matter?

Posted by Murry Guy, CPA on Dec 16, 2024

Owners’ equity is the difference between the assets and liabilities reported on your company’s balance sheet. It’s generally composed of two pieces: capital contributions and retained earnings. The former represents the amounts owners have paid into the business and stock repurchases, but the latter may be less familiar. Here’s an overview of what’s recorded in this account.

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Posted in Business Advisory

Self-Employment Tax: A Refresher on How It Works

Posted by Murry Guy, CPA on Nov 19, 2024

If you own a growing, unincorporated small business, you may be concerned about high self-employment (SE) tax bills. The SE tax is how Social Security and Medicare taxes are collected from self-employed individuals like you.

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Posted in Business Advisory

Employers: In 2025, the Social Security Wage Base Is Going Up

Posted by Murry Guy, CPA on Oct 23, 2024

As we approach 2025, changes are coming to the Social Security wage base. The Social Security Administration recently announced that the wage base for computing Social Security tax will increase to $176,100 for 2025 (up from $168,600 for 2024). Wages and self-employment income above this amount aren’t subject to Social Security tax.

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Posted in Business Advisory

Understanding Your Obligations: Does Your Business Need to Report Employee Health Coverage?

Posted by Murry Guy, CPA on Oct 03, 2024

Employee health coverage is a significant part of many companies’ benefits packages. However, the administrative responsibilities that accompany offering health insurance can be complex. One crucial aspect is understanding the reporting requirements of federal agencies such as the IRS. Does your business have to comply, and if so, what must you do? Here are some answers to questions you may have.

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Posted in Business Advisory

Cutoffs: When to Report Revenue and Expenses

Posted by Murry Guy, CPA on Sep 25, 2024

Timing is critical in financial reporting. Under accrual-basis accounting, the end of the accounting period serves as a “cutoff” for when companies recognize revenue and expenses. However, some companies may be tempted to play timing games, especially at year-end, to boost financial results or lower taxes.

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Posted in Business Advisory

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