Accounting Solutions PLLC

09/18/2025

Employee meals can be tax-deductible under certain conditions, with the potential for either 50% or 100% deductibility depending on the circumstances.

Deductibility Overview
50% Deductible Meals: Generally, business meals are only 50% deductible. This applies to meals that are directly related to the active conduct of a trade or business. To qualify, there must be a clear business purpose for the meal, and it should not be lavish or extravagant.

100% Deductible Meals: Certain meals can be fully deductible, particularly when they are provided for the convenience of the employer. This includes meals provided on the employer's premises when employees are required to remain on-site for business reasons, such as during emergency calls or when meal breaks are limited.

05/14/2025

Sale of a house is a very high value financial transaction. It is exciting to move into new phase of your life, but it comes with the tax burden too.

You should be mindful of the following taxes:

1. Capital Gains Tax: Exemption can apply
2. Net Investment Tax: It is 3.8% on the capital gain. But there is income threshold amount to be considered
3. Depreciation Recapture Tax: This applies to only business and rental property
4. State Taxes – Some localities charges tax on the sale of the property

Feel free to contact us for the consultation

01/11/2025

When securing your financial future, one key strategy is investing in Tax-free and/or Tax Deferred savings accounts. As the name suggests, these savings accounts offer a unique advantage by allowing you to grow your money without the burden of taxation or delay the taxes on the earnings. Feel free to contact us for the detail information.

Some of the examples are as follow:

1. Traditional Individual Retirement Accounts (IRAs)
2. Roth Individual Retirement Accounts (IRAs)
3. Health Savings Accounts (HSAs)
4. 529 College Savings Plans
5. Coverdell Education Savings Accounts

10/30/2024

Filing taxes can be complex and overwhelming; even the most diligent taxpayers can make mistakes. If you've discovered an error or omission in a previously filed tax return, don't panic! The Internal Revenue Service (IRS) allows taxpayers to correct these mistakes by filing a tax amendment, known as Form 1040X.

Correcting Errors:
One of the most common reasons for filing a tax amendment is correcting errors made on your original tax return. These errors include incorrect income or deduction amounts, missed credits or deductions, or even incorrect filing status. By filing a tax amendment, you can rectify these mistakes and ensure that your tax return reflects accurate information.

Claiming Missed Deductions or Credits:
Another essential reason to file a tax amendment is to claim deductions or credits you missed on your original return. As tax laws change periodically, you may discover new deductions or credits you qualify for after filing your return. By filing an amendment, you can include these overlooked deductions or credits, potentially reducing your tax liability and even increasing your tax refund.

Reporting Changes in Filing Status:
Life events such as marriage, divorce, or the birth of a child can significantly impact your filing status. If you initially filed your return under the wrong position, filing an amendment can help you correct it. For example, jointly switching from single to married filing can often result in more favorable tax treatment and potentially lower overall tax liability.

Reporting Additional Income:
If you inadvertently omitted income on your original tax return, filing an amendment to rectify the situation is crucial. The IRS receives copies of various income-related documents, such as W-2s and 1099s, so it's essential to ensure that your reported income matches the information the IRS has on file. Failing to report additional income can lead to penalties, interest, or even an audit, so it's in your best interest to correct any omissions promptly.

Addressing IRS Notice or Audit:
Sometimes, the IRS may send you a notice indicating a discrepancy or error on your tax return. In such cases, filing a tax amendment is necessary to address the issue. If you receive an audit notice, it's crucial to consult with a tax professional who can guide you through preparing and filing an amendment accurately.

Feel free to contact us. We have Solutions to your problems.

06/05/2024

Medical expenses can be a significant financial burden for many individuals and families. However, some relief is available in the form of potential tax deductions. The Internal Revenue Service (IRS) and State agencies allow taxpayers to deduct certain qualified medical expenses on their income tax returns, which can help reduce their overall tax liabilities.

Tax laws are always changing. For more details contact us at (434) 973-5311 or schedule a consultation through our website

Contact Accounting Solutuions PLLC in Charlottesville, VA today at 434-973-5311 to learn more about our tax service.

05/30/2024

Planning for retirement is crucially important when thinking about your future financial stability and peace of mind

Which type of account is right for you? The two most common types are tax-deferred (such as 401(k)s and traditional Individual Retirement Accounts), and tax-exempt Retirement Accounts (such as Roth IRAs and Roth 401(k)s.

There are different tax benefits and are tailored for different retirement and financial goals. The right choice for you depends on your current tax bracket and future taxable income

Your choice should align with your financial situation, goals & your timeline. Our experts are here to help you make the right choice for your and your family’s peace of mind and reduce your tax burden currently and in the future.

05/15/2024

Reminder: Taxpayers must file and pay taxes even if they live abroad

It’s important that U.S. citizens and resident aliens living abroad understand their tax obligations.

Their worldwide income -- including wages, unearned income and tips -- is subject to U.S. income tax, regardless of where they live or where they earn their income. They also have the same income tax filing requirements as U.S. citizens or resident aliens living in the United States.

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04/05/2024

This week Accounting Solutions is celebrating 25 years of business helping our Charlottesville Businesses and Neighbors with their tax services! Here's looking to many more!

03/05/2024

Self-employed? Checking your tax situation just got easier with the IRS's Tax Withholding Estimator

The Tax Withholding Estimator helps make it easier for everyone to pay the correct amount of tax each year.

03/05/2024

Enrolled Agents are the only representatives for the taxpayers who have the right to practice from the United States Treasury. CPA and attorneys are only licensed by the respective state.

02/27/2024

New FAQs available to aid families and small business under the American Rescue Plan

IR-2021-128, June 11, 2021 — The Internal Revenue Service today posted two new, separate sets of frequently-asked-questions (FAQs) to assist families and small and mid-sized employers in claiming credits under the American Rescue Plan (ARP).