Posts filed under the Small Business Taxes category.

Depreciation Recapture

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Depreciation reflects the recognition that certain assets  tend to lose value over time. The IRS generally allows you to categorize the “used up” value of your assets as an expense to offset ordinary income so that special rules should be in place to treat any future gain as well. Depreciation recapture rules have been there since the 1960s.

What is depreciation recapture?

Depreciation recapture doesn’t add to a taxable gain it’s a method of determining the tax treatment of any gain.

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Payroll Tax Payment and Filing Requirements for Small Businesses

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As a business with employees, you have certain important responsibilities relating to payroll taxes. Payroll tax responsibilities involve not only making sure that your federal and state taxes are paid and reported to the appropriate tax agencies, but also includes reporting obligations to employees and contractors, as well as recordkeeping requirements. Accurate and timely compliance is the key to avoiding payroll tax penalties!

When you hire your first employee,  you have to apply  an employer tax identification number (EIN) with the IRS for use on all your correspondence,

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