Busted! Don’t Believe These Bookkeeping Myths!
Bookkeeping is a task, and to do it right, you need professional help. Bookkeepers are well-equipped with the knowledge and right resources to ensure the efficiency and accuracy of work.
Some people are scared of bookkeeping because of the myths that are floated around. Most of these myths are untrue, and it is best to learn the basics of bookkeeping to understand it better.
To help you steer clear of these misconceptions, Phoenix Business Services INC. has debunked some of the most widely believed myths about bookkeeping.
Myth 1: Social Security benefits are not subject to tax
When people receive social security, it usually means they are retired, which is not the case with everybody. Most people need other sources of income to survive. I tell customers that it will depend on all income for the year. To determine whether the amount is greater than the taxable threshold, we need to enter all the income-related data for the year.
Myth 2: The recipient of a large gift must pay tax on the amount received
The gift tax for large amounts is paid by the person that gives the money. The person receiving does not pay tax on the money. The giver must file a tax return if the amount is over $15,000.00 in 2021 and $16,000.00 in 2022.
Myth 3: Cryptocurrency is not taxable
Crypto is taxed just like other assets, including capital gains. If you sell Crypto at a profit, you will be taxed on it. If you purchased a car or TV, the IRS considers that a sale and will tax that amount.
If you’re looking to steer clear of these myths, reach out to Phoenix Business Services INC. as the leading bookkeepers and tax preparers in Lancaster, California.
We offer accounting, bookkeeping, tax preparation, payroll and notary services. Our clients are spread across Palmdale, Littlerock, Santa Clarita, Lancaster, Rosamond, Quartz Hill, Acton, and the surrounding areas.
For a complete list of our services, please click here. If you have any questions about Phoenix Business Services INC., we’d love to hear from you. For more information, please call us at (661) 945-5576 or email us at leebookkeeper@yahoo.com.