Estimated Tax Payments
Entrepreneurs, sole-proprietors, shareholders of S corporations, partners in partnerships, and members of LLCs, as well as certain employees with wages may need to make quarterly estimated tax payments to avoid paying interest and penalties. If it stands that you will owe more than $1,000 when you file your individual income tax return, then to avoid…
Read MoreA Family Limited Partnership Can Save Tax in a Family Business Succession
One of the biggest concerns for family business owners is succession planning — transferring ownership and control of the company to the next generation. Often, the best time tax-wise to start transferring ownership is long before the owner is ready to give up control of the business. A family limited partnership (FLP) can help owners…
Read MoreHow to Document Business Meals, Vehicle and Travel Expenses
Meal, vehicle and travel expenses are common deductions for businesses. But if you don’t properly document these expenses, you could find your deductions denied by the IRS. A critical requirement Subject to various rules and limits, business meal (generally 50%), vehicle and travel expenses may be deductible, whether you pay for the expenses directly or…
Read MoreLLC Restrictions on Professional Services Companies in California
Limited liability company (LLC) members that operate a “professional services” company registered in California are at risk of losing liability protection, paying penalties and interest, having to amend prior year tax returns, losing their company name and paying more administrative and accounting fees which could include adjustments to payroll and payroll tax returns. Ouch! LLCs…
Read MoreVolunteer to Give
What can you deduct when volunteering? Because donations to charity of cash or property generally are tax deductible (if you itemize), it only seems logical that the donation of something even more valuable to you — your time — would also be deductible. Unfortunately, that’s not the case. Donations of time or services aren’t deductible.…
Read MoreHome Green Home: Save Tax by Saving Energy
“Going green” at home — whether it’s your principal residence or a second home — can reduce your tax bill in addition to your energy bill, all while helping the environment, too. The catch is that, to reap all three benefits, you need to buy and install…
Read MoreDoes your business have to begin collecting sales tax on all out-of-state online sales?
You’ve probably heard about the recent U.S. Supreme Court decision allowing state and local governments to impose sales taxes on more out-of-state online sales. The ruling in South Dakota v. Wayfair, Inc. is welcome news for brick-and-mortar retailers, who felt previous rulings gave an unfair advantage to their online competitors. And state and local…
Read MoreTax Advantaged Health Care Accounts
There continues to be much uncertainty about the Affordable Care Act and how such uncertainty will impact health care costs. So it’s critical to leverage all tax-advantaged ways to fund these expenses, including HSAs, FSAs and HRAs. Here’s how to make sense of this alphabet soup of health care accounts. HSAs If you’re covered by…
Read MoreSupreme Court Opens Door to Taxation of Online Sales
Supreme Court opens door to taxation of online sales In a much-anticipated ruling that confounded the expectations of many court watchers, the U.S. Supreme Court has given state and local governments the green light to impose sales taxes on out-of-state online sales. The 5-4 decision in South Dakota v. Wayfair, Inc. was met by cheers…
Read MoreChoosing the best business entity structure post-TCJA
For tax years beginning in 2018 and beyond, the Tax Cuts and Jobs Act (TCJA) created a flat 21% federal income tax rate for C corporations. Under prior law, C corporations were taxed at rates as high as 35%. The TCJA also reduced individual income tax rates, which apply to sole proprietorships and pass-through entities,…
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