Patrick Murtha

Understanding Basis

Understanding Basis

Leave a Comment / Taxes /

When people think about taxes on investments or property, they often focus on the sale price. But from a tax perspective, an equally important number to consider is their basis.

Basis represents your investment in an asset as the starting point used to determine gain or loss when that asset is sold. Since basis can change over time due to improvements, depreciation and other adjustments, understanding how it works can help you understand accurate tax liability.

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History of Taxes in America

A Brief History of Taxes in America: From Tea to TurboTax

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After the holidays pass, the ball drops and then suddenly it’s upon us: taxes.  They’ve shaped our country from the moment people in powdered wigs started arguing about tea; and they continue to influence how we live, work and plan to this day. As we head into a new year (and a new tax season), let’s look at how the American tax system evolved into the modern system that has us all calling our accountants every January.

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Understanding BOI and FinCEN:
Implications for Businesses and Compliance

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The Financial Crimes Enforcement Network (FinCEN) plays a pivotal role in the US financial system with a focus on preventing money laundering and terrorism financing. Effective in 2024, a critical element in this framework is the reporting of Beneficial Ownership Information (BOI). BOI refers to data identifying the individuals who own or control a company.

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Implications for Businesses and Compliance Read More »

Understanding Quarterly Estimated Taxes:
A Guide for Business Owners and Freelancers

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Managing taxes may feel like navigating a maze for business owners and freelancers. Unlike traditional employment which offers automatic tax withholding from paychecks, independent contractors must handle their tax obligations on their own. We recommend managing this by making quarterly estimated tax payments, advance payments made directly to the IRS on taxable income and can

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A Guide for Business Owners and Freelancers Read More »

Navigating the Tax Implications of Small Business Loans

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Offering potential for growth and sustainability, small business loans can be a valuable lifeline for entrepreneurs. These loans can provide the necessary capital to start, maintain or expand operations, but it’s essential to understand the potential tax implications. Like personal loans, small business loans are not considered taxable income because you are required to repay

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Maximizing Tax Benefits: The Business Use of a Vehicle

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When it comes to running a business, every expense matters. An often-overlooked area to optimize financial strategies is the business use of a vehicle, which can offer significant tax advantages if managed correctly. What constitutes qualifying business use? Generally, the use of a vehicle for business-related activities, such as transportation to client meetings, travel to

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Self-Employed? Here’s Your Tax Preparation Checklist

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Being self-employed brings many freedoms, but also unique tax responsibilities. Unlike traditional employment, self-employed taxpayers need to manage their tax obligations throughout the year actively. As tax season begins, here’s a comprehensive checklist to help you prepare your taxes efficiently and maximize your deductions. Gather all documents that report your income, including 1099-NEC forms from

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Charitable Donations – Cash Contributions 

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If you itemize deductions on your tax return, you may be able to include any charitable contributions made during that filing year. Itemizing donations entitles taxpayers to charitable contribution deductions.

Qualifying organizations, typically 501(c)(3), serve the public, providing a valuable service to the community and do not operate for profit. In general, these organizations are either charitable, religious, educational, scientific or literary.

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Advantages of an Accounting Professional

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Whether you’re starting a new business or trying to get your personal finances in order, you may be wondering what the benefits of retaining an accounting professional are. Accountants have specialized knowledge and experience in accounting, tax laws and financial management. Professionals are less likely to make errors in financial statements, tax filings or other

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Mortgage Interest and Property Tax Deductions on your Primary Residence

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Tax time isn’t something most taxpayers look forward to, but when you can take tax deductions, it can be much easier to handle. For example, if you’re a homeowner, you may be able to deduct your mortgage interest and property taxes up to specific points. The Tax Cuts and Jobs Act changed how much homeowners

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What to do in the event of tax identity theft?

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Tax identity theft occurs when an identity thief files a fraudulent return using a stolen taxpayer’s social security number to claim the victims tax refund. The thief would use the victims personal and consumer information to file the forged tax return, usually early in the filing season before the victim files themselves. This way, the scammer would likely receive the victims refund before the IRS processes the real filing. They might invent fake wages to submit the information electronically. 

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Pasco County Raising Tourist Tax to 5%: Effective June 1, 2022

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On April 5th of 2022, the Pasco County Board of County Commissioners approved to raise the tourist development tax rate for Pasco County from 4% to 5%. This Ordinance was passed unanimously, and it is scheduled to take effect for rental stays starting June 1st, 2022. For our Zephyrhills residents specifically, this means that anyone

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Patrick Murtha

Guide: Deductions for the Self-Employed

Leave a Comment / Tax Planning, Business Issues, Taxes /

Are you Self-Employed? Here’s what you can deduct. Almost every day, one of my clients will ask whether a certain expense is deductible for their business. In general, most expenses that are reasonable and necessary to the operation of your business will be deductible. Let’s take a look at some common expense categories that all

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