Stay Ahead of Law Changes & Protect Yourself Against Being Audited: Corporate Transparency Act and Reasonable Compensation

I have a simple tax question, why is it so hard to answer?

The Frustration of Tax Questions: A Deep Dive

Year round we get calls and emails from clients and perspective clients alike, many times with what is intended to be a simple tax question. “If I do this thing, can I write it off” is a very common one. Trouble is, there are NO simple tax answers – because everything is subject to your individual facts and circumstances. The most accurate answer to any tax question is ‘maybe’.

A prime example is medical expenses. My spouse is diabetic and we pay more than $100.00 a month in insulin, can we write that off on our tax return? The easy answer is yes. However, even though it can be a medical deduction it has a very high chance to not changing their tax return by even $1.00 due to the income limitation and standard deduction. ‘Wait that doesn’t make sense, if I can write it off then how come it doesn’t help me?’ That is precisely the reason why there are no simple tax answers. Please look to a this post for more on medical deductions.

It is not only your own facts and circumstances, but the whole picture of your tax return. It is entirely possible something is a ‘write off’ for someone else and not for you. If I have a business selling homemade cookies on the street corner every weekend, and I present you with deductions for airfare… is that a write off? Well it depends. What was the airfare for? A cooking convention in Florida that went for 2 days and you were there for 2 days? Then very likely it would be. A cooking convention very close to Disney and the convention was for 1 day and you were there for 12… it was clearly not 100% business. The question of ‘can I write of airfare for my business’ is a simple question, but no answer can truly be given without more information.

This applies to work and business deductions, donations to charity, paying for college, student loans, gambling losses, miles driven in your car for work, inheritance, and many other things. Many things are limited by level of income. Others by total deductions, that is also another long list. As tax professionals, we truly want to give you more than a yes or no answer. However, giving you a simple yes or no could be a disservice to you as a valued client if your personal tax situation could result in either answer being insufficient to your circumstances. We need a copy of your last year’s tax return, and permission to use it, to be as accurate as we can.

In the end, please don’t be frustrated or upset when it is difficult to find, or get a straight answer about your simple tax question. Your tax answer revolves around your family’s taxes, not someone else’s taxes.

Charles Steinmetz
Senior Tax Professional

The Molen & Associates Difference

Mike Forsyth

“Super helpful and timely. This is our first year with them and we look forward to trusting them with our taxes and business books for years to come.”

Caitlin Daulong

“Molen & Associates is amazing! They run an incredibly streamlined process, which makes filing taxes a breeze. So impressed with their attention to detail, organization, and swift execution every year. Cannot recommend them enough!”

Sy Sahrai

“I’ve been with Mr. Molen’s company for few years and I felt treated like family respect and dignity. They are caring, professional and honest, which hard to find these days. Love working with them.”

Want to deduct your dog? Here’s how?

Three Ways to Deduct Your Dog, Cat, or Other Animal Expenses Owning a pet is often an expensive yet rewarding experience, with annual costs for dogs ranging from $1,270 to $2,800. While the love and companionship pets provide are invaluable, the IRS views their...

Claim $1600 Stimulus Check – IRS 2025 Rebate & Eligibility

As millions of Americans continue to grapple with financial challenges post-pandemic, questions surrounding the $1600 stimulus check, IRS 2025 payments, and the Recovery Rebate Credit are trending once again. Whether you missed out on a past stimulus payment or are...

Bookkeeper vs. Accountant: What’s the Difference?

Bookkeeper vs. Accountant: What's the Difference? Managing your business’s finances is essential for long-term success, but understanding the roles of a bookkeeper and an accountant can be confusing. In the debate of Bookkeeper vs. Accountant: What's the Difference?,...

How to Set Up Your IRS Online Account with ID.me (Step-by-Step Guide)

ID.me and the IRS Login System ID.me is a third-party identity verification service that the IRS uses to provide secure access to certain online tools and services. If you need to access your IRS account online, such as to view your tax records, get your transcripts,...

What Is the One Big Beautiful Bill Act? Key Tax Changes for 2025 and Beyond

Debt, Deductions, and Cuts: The Fiscal Impact of the One Big Beautiful Bill If you’re a taxpayer, business owner, or financial advisor, the “One Big Beautiful Bill Act” (OBBB) could impact your tax strategy in major ways. Passed by the House of Representatives in May...

5 Signs Your Business Needs Accounting Help

5 Signs Your Business Needs Accounting Help Running a successful business requires more than a great product or service—you need a solid handle on your finances. However, many small business owners and self-employed professionals find themselves overwhelmed by the...

Tax Implications: Employees vs. Contractors

Tax Implications: Employees vs. Contractors When growing your business, deciding whether to hire employees or engage independent contractors is a critical choice with significant tax implications. Understanding the difference between these two worker classifications...

Maximize Your QBI Deduction Before It’s Gone: Act Now!

Maximize Your QBI Deduction Before It’s Gone: Act Now! Introduced by the Tax Cuts and Jobs Act (TCJA), the Qualified Business Income (QBI) Deduction has become a cornerstone tax break for business owners. However, this valuable deduction is scheduled to sunset after...

Outsourced vs. In-House Bookkeeping: Which Is Best?

Outsourced vs. In-House Bookkeeping: Which Is Best? As a small business owner or self-employed professional, keeping accurate financial records is critical for managing cash flow, preparing taxes, and driving growth. When it comes to bookkeeping, you have two main...

Cash vs. Accrual Accounting: Which is Best for Your Business?

Cash vs. Accrual Accounting: Which Method is Right for Your Business? Choosing the right accounting method is one of the most important financial decisions a small business owner can make. Whether you’re just starting out or looking to refine your bookkeeping process,...

Request an Appointment Today

5 + 9 =

Call us at

Share This