Tax Planning

San Diego Tax Planning

Integrity is the first code of ethics for certified public accountants.

Paying the least amount of taxes legally is your right and obligation.

San Diego tax planning accomplishes saving companies money through legal tax deductions.

By the time you get to your CPA at the end of the year, the window for tax planning has passed.

San Diego Bookkeeping and Accounting achieves tax savings.

Most businesses have many options, all which should be explored.

Legal deductions are something every business owner should be armed with the knowledge of.

San Diego Bookkeeping and Accounting is here to help you with your San Diego tax planning.

Here is a list of generic business deductions that fit most companies

Auto Deductions
Meals and Entertainment
Charitable Contributions
Retirement Contributions
Rent your house up to 15 days
Payroll into college 529 or Retirement

Yes, when accountants say it depends, it really does depend on the whole picture.  Spewing out loopholes to someone trying to jump through does not always work for every situation.  It really depends on the whole picture and correctly understanding would be ideal.

Understanding travel expenses can be tricky

As long as the trip was 100% business, it is not complicated.
However, if you added a weekend vacation while you were out of town, the complication of calculating what is business and what is pleasure begins.
Just because there is a weekend in the business trip doesn’t make the weekend vacation days. The IRS has rules to calculate through the deductible portion of your trip.  These rules are so specific it even accounts for if the trip was inside or outside of the United States.

Dry cleaning is deductible while you are out of town

Meals while traveling can be confusing.
Meals can be seen as entertainment (50% deduction) or a necessary expense while traveling (100% deductible).
Meals can be expensed per diem, or at the actual expense.

Per Diem refers to the hotel, meals and incidentals.

Per diem rates can be associated with each city, and month.
A hotel in January of 2016 in San Diego is allowed a per diem of $153, while in September of 2016 it is $140.  The national average of $46 a day per diem for meals while traveling just doesn’t sound reasonable for the San Diego resident.  If you travel to San Diego is $64 a day per diem for meals.  Meals can include breakfast, lunch dinner and a snack.

The IRS website states: “Lavish or extravagant.   You cannot deduct expenses for meals that are lavish or extravagant. An expense is not considered lavish or extravagant if it is reasonable based on the facts and circumstances. Expenses will not be disallowed merely because they are more than a fixed dollar amount or take place at deluxe restaurants, hotels, nightclubs, or resorts.”

Section 179 Deduction

Section 179 allows you to expense something normally depreciated over time, and capture the entire expense in the year it was purchased.
This maximum amount is decided annually.

The IRS maxes out your luxury car deduction.

The IRS website states: “You cannot elect to expense more than $25,000 of the cost of any sport utility vehicle (SUV) and certain other vehicles placed in service during the tax year.”

There is a 5-year depreciation on an automobile.