If you acquire a small business, your to-do list will be long. This means you cannot devote all of your time to the deal’s potential tax implications. However, if you neglect tax issues during the negotiation process, the negative tax consequences can be serious. To...
Small Business
Your Weekly ReadLarger deduction for meals might be available to businesses
When businesses provide meals to their employees, generally their deduction is limited to 50%. But there are exceptions. One is if the meal qualifies as a de minimis fringe benefit under the Internal Revenue Code. A recent U.S. Tax Court ruling could ultimately mean...
How Small Business Retirement Plans Compare
If your small business does not have a retirement plan, or if you are not pleased with the one you currently have, this summary can help you see how your retirement plan choices stack up. Safe harbor 401(k)s As 401(k) plans have gained popularity, many employees or...
Material participation key to deducting LLC and LLP losses
If your business is a limited liability company (LLC) or a limited liability partnership (LLP), you know that these structures offer liability protection and flexibility as well as tax advantages. But they once also had a significant tax disadvantage: The IRS used to...
An ESOP offers small businesses tax and other benefits
With an employee stock ownership plan (ESOP), employee participants take part ownership of the business through a retirement savings arrangement. Meanwhile, the business and its existing owners can benefit from some potential tax breaks, an extra-motivated workforce...
Adjusting rental vs. personal use may save tax on vacation home
Now that we’ve hit midsummer, if you own a vacation home that you both rent out and use personally, it’s a good time to review the potential tax consequences: If you rent it out for less than 15 days: You don’t have to report the income. But expenses associated with...
All fringe benefits aren’t created equal for tax purposes
According to IRS Publication 5137, Fringe Benefit Guide, a fringe benefit is “a form of pay (including property, services, cash or cash equivalent), in addition to stated pay, for the performance of services.” But the tax treatment of a fringe benefit can vary...
Keep your real estate out of your business to save tax
It’s common for a business to own not only typical business assets, such as equipment, inventory, and furnishings, but also the building where the business operates — and possibly other real estate as well. There can, however, be negative consequences when a...
3 breaks for business charitable donations you may not know about
Donating to charity is more than good business citizenship; it can also save tax. Here are three lesser-known federal income tax breaks for charitable donations by businesses. Food donations Charitable write-offs for donated food (such as by restaurants and grocery...
Small business owners can succeed while doing good
The federal Small Business Administration reports that about 75% of small business owners donate some portion of their profits to charity each year. The average contribution is around 6% of earnings. Fulfilling philanthropic intentions has emotional rewards. And there...
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144 W 2nd St
Washington, NC 27889
Washington, NC 27889
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