The Tax Cuts and Jobs Act (TCJA) made many changes to the tax deductions and credits that are available to businesses. One of those is the R&D tax credit. This credit can save some businesses hundreds of thousands of dollars, but only if they understand exactly when it is...
As 2018 comes to an end, it’s time to think about year-end tax planning for 2018, and to plan ahead for 2019, especially with the new tax reform legislation passed by Congress last year. This article highlights potential tax-savings opportunities and strategies for you to consider.
There are various ways that business owners can save money on taxes. Knowing how can translate into an improved net income after taxes.
Tax Implications of Selling Your Business You are excited about sealing the deal. You can almost see money exchanging hands. You can imagine an immediate future where you have already sold your business and move on to something else. But you may have forgotten something—taxes. Specifically, taxes that are...
When clients call me looking to create tax deductions before year end, I generally deliver the bad news that if they want to bring their taxable income down they are going to have to spend some of their money or at least put it in a restricted account. This,...
To be deductible expenses, a business expense must be ordinary, necessary and reasonable in amount. The part of that three-pronged test that seems to give taxpayers the biggest problem is the reasonable amount.
It’s official! The House, Senate, and President passed the Protecting Americans from Tax Hikes Act of 2015 (PATH Act), which includes momentous tax breaks and incentives for taxpayers. Included in this legislation are over 20 vital permanent provisions that will benefit individuals and businesses alike, including a permanent R&D...
Does your organization use temporary workers or independent contractors on a regular basis?
Your company probably offers an array of fringe benefits to its employees, including health insurance and group-term life insurance. While there are certain requirements, these fringe benefits are generally deductible by the company and tax-free to the employees as long as they are not discriminatory in nature. (If your...
There are instances when you can write off interest on personal loans used for business purposes, such as injecting capital into an S corporation, multi-member LLC, partnership or C corporation. But keep in mind that interest expenses must be classified into one of four categories (see box at the...