TMD Accounting - Thomas M. DiTullio

You should keep copies of your receipts for several years to substantiate expenses on your business tax returns, typically aligning with the IRS statute of limitations (usually 3 years).

Complete and accurate financial records are essential, including income statements, expense records, bank statements, and tax filings, to ensure efficient operations and compliance.

Yes, maintain records such as insurance policies, major purchase documents, family records (e.g., marriage licenses), and health records for potential casualty losses or dependency exemptions.

Self-employed individuals can deduct up to $510,000 for equipment purchases in 2017, deduct 100% of health insurance premiums, and contribute to retirement plans like Keogh, SEP, or SIMPLE IRAs.

Filing separately may benefit couples with unequal incomes or large medical expenses, as it allows separate computation of adjusted gross income floors for deductions.

Contributing to a Flexible Spending Account (FSA) or cafeteria plan allows you to pay for eligible expenses with pre-tax dollars, reducing taxable income and increasing savings.

Donating appreciated long-term capital assets directly to charity avoids capital gains tax and allows a deduction for the full fair-market value, often more beneficial than selling and donating cash.