Allocating Self-Employment Taxes Between Business Owner and Spouse

Last week I was visited by a 60 year old woman whose husband had died last year. For 30 years he had a successful, profitable business run as a Sole Proprietorship. And every year he dutifully paid his Self-Employment taxes, putting money into his social security account – HIS social security account. Now his widow [...]

Tax Audits of Business Vehicle Deductions

I just finished attending an IRS tax audit with a client.  The auditor’s biggest interest was in the client’s business auto expense deduction.    So, here are some thoughts about that: 1.  For business use of vehicles, you may deduct actual expenses or the standard mileage deduction.  In either case, the IRS wants to see [...]