In order to take advantage of two important depreciation tax breaks for business assets, you must place the assets in service by the end of the tax year. So you still have time to act for 2016. Taking the Section 179 deduction on purchases of business assets The...
The last month or so of the year offers accrual basis taxpayers an opportunity to make some timely moves that might enable them to save money on their 2016 tax bill. The key to saving tax as an accrual basis taxpayer is to properly record and recognize expenses that...
For business owners who are seeking a successor, the right person might be obvious. If you have a co-owner or partner, a buy-sell agreement can set the terms. If a younger family member is willing and able, you can decide on a way to transfer control. Otherwise, there...
The election of Donald Trump as President of the United States could result in major tax law changes in 2017. Proposed changes spelled out in Trump’s tax reform plan released earlier this year that would affect businesses include: Reducing the top corporate income tax...
Robert Frost once observed, "A bank is a place where they lend you an umbrella in fair weather and ask for it back when it begins to rain." Most small business owners would agree. On one side of the desk you have the lenders, who want to manage their risk by loaning...
Many companies start out, and get pretty far down the road, using the “per diem” approach when reimbursing employees for lodging, meals and incidental expenses. Doing so involves the use of either IRS tables or a simplified high-low method to reimburse workers up to...
A great deal of attention is paid to individual tax identity theft — when a taxpayer’s personal information - including their Social Security number - is used to fraudulently obtain a refund or commit other crimes. But businesses can also be victims of tax identity...
In addition to income tax, you must pay Social Security and Medicare taxes on your earned income, such as salary and self-employment income. The 12.4% Social Security tax applies only up to the Social Security wage base of $118,500 for 2016 ($127,200 for 2017). All...
Whether you’re selling your small business or acquiring another company, the tax consequences can have a major impact on the transaction’s success or failure. Consider installment sales, for example. The sale of a small business might be structured as an installment...
If you have incomplete or missing records and get audited by the IRS, your business will likely lose out on valuable business deductions. Here are two recent U.S. Tax Court cases that help illustrate the rules for documenting your business expenses. Case 1:...
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