Vehicle Registration Renewal Fee Is Not 100% Tax Deductible

I have seen almost every new client who came to my firm from other CPAs, HR Block, some unknown hair salon or travel agency which also did their prior year taxes, claimed on their 1040 itemized deduction, the full amount they paid to DMV to renew their registration. This is wrong because according to the Treasury Regulations Sec 1-164-3(c), state and local taxes imposed on personal property has to be ad valorem (substantially in proportion to the value of the property) in order to be deductible on 1040. The DMV registration renewal fees however includes other fees in addition to this "ad valorem" property tax.

When I see how almost the whole USA (at least in California) is deducting the full amount of the DMV registration and how there are so many CPAs, licensed or not licensed tax preparers are doing this for their clients, I am in awe. I'm in awe that there are actually so many so-called professionals who are practicing accounting this way. I don't know if they are real ignorant about it or they are just being "aggressive". I have to spend a lot of time explaining to all these new clients why I'm not deducting as much automobile registration renewal fee as their previous tax preparers (which includes their hair dresser whose hair salon also has neon sign blinking "Tax Preparation"). To find out how much DMV fee you can actually deduct, (I think different states call it differently, I only know about California), go look for the line where it says Vehicle License Fees on your DMV renewal bill and you can deduct no more than that. For those of you who still have difficulty finding the right deductible amount, click here and the DMV website will do the calculation for you.

Part time bookkeeper 15-20 Hours Per Week in South Bay CA

Essential Duties & Responsibilities:

• Full cycle accounting, including GL, AP, AR
• Multiple bank and credit card reconciliation
• Post payroll
• Filing & organizing
• Financial statement and cash flow reporting
• Journal entries
• Assist with tax preparation
• Assist with preparation of annual review with outside CPA firm

Must be proficient in Quickbooks, Excel and Word. Applications will not be considered unless you have 2 years experience using these applications. Must be punctual, organized, have reliable transportation, able to think ahead, follow-through, follow-up, and meet deadlines. Must have minimum of 3 references which will be checked.

This job is on a per project basis.

Please email resume for an interview.

Bookkeeping For New Business

With the scarcity of jobs in this economy, we understand that more and more people are planning on creating their own jobs by starting their own business. As experienced certified finance and accounting professionals, we want to give back to the economy by making it easier for entrepreneurs to start their businesses. We are currently having a basic bookkeeping package for start-ups. With a very reasonable fee, we will provide your new business the following bookkeeping service:

• Setup your company on Quickbooks with the accounting mechanism that will manage your business's assets, liabilities, and equity.
• Setup your company on Quickbooks with the accounting mechanism that will keep track of your income, expenses and your depreciation.
• Design and layout a set of general ledger, special journals, subsidiary ledgers and also source documents that your business will use to establish the proper accounting control and accurate reporting.
• Help you choose an accounting basis that makes the best sense for your business.
• Provide you with a bookkeeping manual so you can learn to take over your business's bookkeeping if you want to save money, or you can hire us to continue to serve your accounting needs.

Please email us for a free quote.