Category: Tax

Taxation

Deducting Business Use of Aircraft

Deducting Business Use of Aircraft

Deducting business use of an aircraft is not too much different than deducting the costs of a company owned vehicle. It pretty much follows the same rules.  The hard part is to be able to substantiate those deductions. One of the most important questions that must be addressed is when the cost of private aviation…

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Tax Advantages of C Corporations

Tax Advantages of C Corporations

With the 2018 tax reform changes now in place, C corporations have stood out as a winner among other business entities. How C Corporations Are Taxed Under the 2018 Tax Reform A C corporation is not a pass-through entity and is completely separate from its owners when it comes to taxes.  C corporation earnings are…

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Preserving Your Travel Deduction

Preserving Your Travel Deduction

Does your business reimburse employees’ work-related travel expenses? If you do, you know that it can help you attract and retain employees. If you don’t, you might want to start, because changes under the Tax Cuts and Jobs Act (TCJA) make such reimbursements even more attractive to employees. Travel reimbursements also come with tax benefits,…

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Risk of Using Independent Contractors

Risk of Using Independent Contractors

Classifying a worker as an independent contractor frees a business from payroll tax liability and allows it to forgo providing overtime pay, unemployment compensation and other employee benefits. It also frees the business from responsibility for withholding income taxes and the worker’s share of payroll taxes. For these reasons, the federal government views misclassifying employees…

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A Simple Tax-Advantaged Retirement Plan Solution for Small Business

A Simple Tax-Advantaged Retirement Plan Solution for Small Business

If your small business doesn’t offer its employees a retirement plan, you may want to consider a SIMPLE IRA. Offering a retirement plan can provide your business with valuable tax deductions and help you attract and retain employees. For a variety of reasons, a SIMPLE IRA can be a particularly appealing option for small businesses.…

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Time to Create Employee Leasing Company?

Time to Create Employee Leasing Company?

Many specified service businesses (SSB) are labor intensive, but may not necessarily acquire a great deal of property. With depreciation limited to some office furniture and computers, these businesses can generate substantial profits, often employ a great number of people, and spend substantial amounts on human capital. The language in Section 199A (Qualified Business Deduction) leaves…

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Time to Revisit Accounting Methods?

Time to Revisit Accounting Methods?

The Tax Cuts and Jobs Act (TCJA) liberalized the eligibility rules for using the cash method of accounting, making this method — which is simpler than the accrual method — available to more businesses. Now the IRS has provided procedures a small business taxpayer can use to obtain automatic consent to change its method of…

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