Derek Thomas, CPA

The holiday shopping season is underway and the days remaining on the calendar for 2016 are few. Now is the time for taking actions to cut your tax bill for 2016. Weather you are having a good year, rebounding from recent losses, or still struggling to get off the ground, you may still be able to save on your taxes if you make the right moves before the end of the year. Click the link below for a list of year end tax-planning tips. http://derekthomascpa.com/last-minute-tax-planning-tips-fo/

As the owner of an S corporation, it is important that you take a reasonable salary for the work that you do. A big concern of the IRS is the issue of whether or not an S corporation pays reasonable compensation to its shareholders. Often, shareholders avoid paying a salary to avoid paying employment taxes. Instead, they take money out of the corporation as dividends. [ 193 more words ] http://derekthomascpa.com/important-s-corporation-salary-i/

Putting WOTC to Work: Maximize the Work Opportunity Tax Credit for Your Company http://derekthomascpa.com/putting-wotc-to-work-maximize-th/

Now that the filing deadline has passed...you may be wondering if you'll be audited. According to The Kiplinger Letter, the IRS continues to struggle on the enforcement front, owing in large part to severe cuts to its budget and a shrinking work force. Since 2010 it has lost over 5,000 agents and tax collectors. They report that in 2015, the individual audit rate was 0.84%. [ 165 more words. ] http://derekthomascpa.com/irs-audit-rates-at-more-than-dec/

Most of us cannot relate to the life that Prince led, including his enormous wealth. We can learn from his mistakes. By all accounts Prince was fiercely protective of rights to his music. Ironically he completely lost control in his death. His apparent lack of planning may cost his estate. There are some simple estate planning strategies you can follow not only to protect your assets but also your family. [ 102 more words. ] http://derekthomascpa.com/if-you-dont-own-your-masters-you/

With more and more people turning to Airbnb, HomeAway and other Vacation rental sites as a way to generate additional income, the issue of if and when to report the income to the IRS comes into play. Understanding the tax consequences of renting property whether just a portion of your home or an entire residence is not a straightforward process. [ 63 more words. ] http://derekthomascpa.com//renting-your-home-on-airbnb-be/

Can the IRS Tax Fidelity? http://derekthomascpa.com/wordpre/can-the-irs-tax-fidelity/

The tax burden on high-incomers has fallen a bit, new IRS statistics show. According to the 2013 tax records the IRS determined that the top 1% of income earners paid 37.8% of all federal income taxes down from 38.1% in 2012. They reported 19% of all adjusted gross income (AGI) and it took $428,713 of AGI to get into this exclusive club. [ 73 more words. ] http://derekthomascpa.com/wordpress/whos-paying-what/

It may surprise you to know that even the IRS is utilizing the power of social media to reach the American taxpayer. Not only is this an effort to increase online information about filing taxes, but also to minimize the burden on the already flooded call center. They currently have a presence on You Tube, Tumblr, Facebook and yes, even [ 112 more words. ] http://derekthomascpa.com/wordpress/does-the-irs-tweet/

10 Surprising Tax Deductions for 2015 http://derekthomascpa.com//10-surprising-tax-deductions-f/

Health Insurance and Your Tax Return http://wp.me/p48Xjt-3m