Don’t fall victim to one of the ‘Dirty Dozen’ tax schemes
Accountants are not the only ones working overtime during tax season. Scammers take advantage of this time of year to prey on taxpayers to try to steal their money and identity. The IRS has begun compiling its perennial “Dirty Dozen” list of the common scams that tend to peak during the tax filing months. As […]
Taxes are filed, now where is your refund?
Have you filed your taxes this year but still not received your refund? The best resource to check the status is through “Where’s My Refund” on the IRS website. Using this online tool, taxpayers can check on the status of their return within 24 hours after the IRS receives an e-filed return or four weeks […]
Are your employees ignoring their 401(k)s?
For many businesses, offering employees a 401(k) plan is no longer an option — it’s a competitive necessity. But employees often grow so accustomed to having a 401(k) that they don’t pay much attention to it. It’s in your best interest as a business owner to buck this trend. Keeping your employees engaged with their […]
Beware the Ides of March — if you own a pass-through entity
Shakespeare’s words don’t apply just to Julius Caesar; they also apply to calendar-year partnerships, S corporations and limited liability companies (LLCs) treated as partnerships or S corporations for tax purposes. Why? The Ides of March, more commonly known as March 15, is the federal income tax filing deadline for these “pass-through” entities. Not-so-ancient history Until […]
Stay organized with solid record retention plan
Organization guru Marie Kondo can offer tips for decluttering your home, and we have suggestions for keeping your important financial records in order. The first part of the year is a good time for McDonald’s owner/operators to run a cash sheet on QsrSoft for the previous year. Having this information on hand is important because […]
When are LLC members subject to self-employment tax?
Limited liability company (LLC) members commonly claim that their distributive shares of LLC income — after deducting compensation for services in the form of guaranteed payments — aren’t subject to self-employment (SE) tax. But the IRS has been cracking down on LLC members it claims have underreported SE income, with some success in court. SE […]
Higher mileage rate may mean larger tax deductions for business miles in 2019
This year, the optional standard mileage rate used to calculate the deductible costs of operating an automobile for business increased by 3.5 cents, to the highest level since 2008. As a result, you might be able to claim a larger deduction for vehicle-related expense for 2019 than you can for 2018. Actual costs vs. mileage […]
Fundamental tax truths for C corporations
The flat 21 percent federal income tax rate for C corporations under the Tax Cuts and Jobs Act (TCJA) has been great news for these entities and their owners. But some fundamental tax truths for C corporations largely remain the same: C corporations are subject to double taxation. Double taxation occurs when corporate income is taxed […]
Clear these hurdles to benefit from deducting investment interest expense
As you likely know by now, the Tax Cuts and Jobs Act (TCJA) reduced or eliminated many deductions for individuals. One itemized deduction the TCJA kept intact is for investment interest expense. This is interest on debt used to buy assets held for investment, such as margin debt used to buy securities. But if you […]
Tax credit for plug-in vehicles begins to phase down
If you purchased a plug-in electrical car in 2018, you may be eligible for a tax credit – but not for long. A federal tax credit of $7,500 was offered to purchasers of plug-in electric cars, but now that two car manufacturers – Tesla and GM – have sold more than 200,000 eligible vehicles in […]