How to Properly Reimburse Yourself and Employees for Business Expenses And keep yourself out of trouble with the IRS!
Failure to use an accountable plan for your employee expense reimbursements (including yourself if you operate as a corporation) turns those improperly reimbursed expenses into taxable wages. In other words, by failing to comply with the accountable plan rules, you turn the tax-free reimbursement into taxable W-2 wages. That’s about as dreadful as it can […]
New IRS Tax Audit Rules for Partnerships
The Bipartisan Budget Act of 2015 (“Act”) made significant changes to the Internal Revenue Service’s (“IRS”) partnership audit rules effective for partnership tax years beginning in 2018. How the new audit rules will affect a partnership and its partners will depend, in large part, on choices the partnership, the partnership representative, and/or the partners make or fail to make.
Business Owners: Why you should relook at your retirement savings under the new tax law
The new Section 199A 20% Pass-Through deduction for business owners is probably the most confusing and complex part of the new Tax Cuts and Jobs Act of 2017; however, it has some very positive planning opportunities that could save you thousands in taxes. One such area is in retirement savings. If your business income is […]
Are real estate agents & brokers an out-of-favor service trade or business for purposes of pass through deduction?
Section 199A instituted a new 20% pass-through deduction for businesses with some exceptions. Certain fields over certain amounts of income were excluded or considered out-of-favor, and would not be able to claim the 20% pass-through deduction. Originally when the law was passed it was thought real estate agents and brokers would be out-of-favor. According to […]
Five Last Minute Tax Reduction Strategies
1)Your year-end tax planning doesn’t have to be hard. I have outlined below five strategies that will increase your tax deductions or reduce your taxable income so that Uncle Sam gets less of your 2018 cash. Prepaying your 2019 expenses right now reduces your taxes this year, without question. While it’s true you kicked the […]
2018 Last Minute Year-End Tax Strategies for Marriage, Kids & Family
Here are five year-end tax-deduction strategies that apply if you are getting married or divorced, have children who did or could work in your business, and/or have situations where you give money to relatives and friends. Put Your Children on Your Payroll Did your children under age 18 help you in your business this year? […]
Last Minute Year-End Tax Strategies for your Stock Portfolio
The beauty of tax planning your year-end stock portfolio is that it might cost you pennies in commissions but allow you to pocket real money. Here’s the basic strategy: Avoid the high taxes (up to 40.8 percent) on short-term capital gains and ordinary income. Lower the taxes to zero—or if you can’t do that, then […]
Last Minute 2018 Year-End Tax Planning
Your year-end tax planning doesn’t have to be hard. I have outlined below five strategies that will increase your tax deductions or reduce your taxable income so that Uncle Sam gets less of your 2018 cash. Prepaying your 2018 expenses right now reduces your taxes this year, without question. While it’s true you kicked the […]
Business Vehicle Purchase under New Tax Law 2018
Thinking about a Business Vehicle purchase? Two Questions: Do you need a replacement business car, SUV, van, or pickup truck? Do you need tax deductions this year? Here are some ideas for you to consider: Buy a New or Used SUV, Crossover Vehicle, or Van with a GVWR Greater than 6,000 Pounds Let’s say that […]
Can I take the new 20% deduction for qualified business income?
Lots of business owners have been contacting us of late, as we’ve developed a bit of a reputation around the Springfield MO area for helping business owners save a bundle on their taxes. And many of the business owners have a similar question: Can I take the new 20% deduction for qualified business income? Also […]