Anthony Sykes & Company

    In this continuing series, we have examined how the landscape of taxes and accounting has changed from one year to the next.  Small businesses have the ability to claim a greater tax credit and expense related to employee insurance premiums. The qualifications are clear, and the rewards are tangible.  However, as of 2014, everyone needs to have their own health insurance.  For those who must provide their own coverage, their most recent tax return is absolutely necessary.     One must file a tax return in order to qualify for mandatory health care coverage.  Some people received an extension for their 2014 Tax Return and can legally file by October 15.  In these cases, the 2013 Tax Return was used as the basis to determine health care payments and possible credits.  Those in this situation must file their 2014 Tax Return ASAP.  This is true if income remains the same, or has changed.  Marketplaces will d...

    As is true of life in general, the world of accounting and taxes is constantly changing, and we need to adjust in order to keep up our awareness and understanding.  These changes mean that from one year to the next, while our business or financial situation may not change, the consequences for us may be very different.  However, that's not always a bad thing.  For example, if starting in tax year 2014 you employed 25 or fewer full-time employees, you may be eligible for the Small Business Health Care Tax Credit.     To qualify for the credit, a small business must buy coverage through the shop (Small Business Health Options) Marketplace, pay at least half of their employees' premiums, and pay an average wage of less than $50,000 per year.  For 2014 the tax credit for a small business increases to as much as 50% of the premiums paid by employers.  For tax years 2010-2013 the maximum was only 35%.  Th...

    Contrary to the popular saying, crime never pays.  The activities it requires of those who choose that lifestyle may promise rich rewards, but will only result in real pain and destruction, from which recovery is very difficult.  Let's consider the recent example of a Northern California man who made that decision and the consequences he is facing.     Steven Jay Carlton was the Executive Director of the Peninsula Symphony Association, which is based in Los Altos.  During his time in this position, he filed false tax returns from 2010-2012 to underreport his earnings and hide money he embezzled from the organization.  These actions led to at least $220,000 being stolen.  Carlton resigned his position in 2013 when the missing funds were noticed.  One year later he pleaded "No Contest"  to six Felonies including Grand Theft (1), Identity Theft (1), Embezzlement (1), and Forgery (3).  In December 2014, he w...

   People in all walks of life enjoy hobbies.  Sometimes, these activities outside of the normal day-to-day routine, can produce an income.  In these situations the income must be reported on your tax return, but not in the same way as a business.  Here are some tips to keep in mind if this is your situation.     First of all, please note that a business and hobby are never the same thing.  The goal of a business is to have an income and make a profit.  A hobby is done for fun and relaxation, and under certain circumstances can create income.  Before you start a business or hobby you should consider your situation to determine which category you fall into.  If a hobby is still the best choice, keep in mind there are allowable hobby deductions.  In this case, deductions on your tax return would need to be itemized.  These would be the types of expenses that are commonly accepted, or helpful and approp...