COMPANY CAR TAX BENEFITS The use of company cars has long been a great fringe benefit for owners and employees of small businesses, and it has gotten even better with the recent tax law changes and updated IRS rules. Not only will the employer receive tax deductions, the owners and employees driving the vehicles will also receive tax breaks. The basics If you’re the owner or employee of a business … Read more
RETHINK TRANSFERRING FUNDS DUE TO THE “KIDDIE TAX” The ”kiddie tax” was first enacted by Congress as a means to keep parents or grandparents in high tax brackets from shielding their income. They did this by giving it to children within their family in lower tax brackets. Although this tax was a bit of a headache for some in prior years. It has since evolved due to the Tax Cuts and … Read more
TAXES MUST BE PAID FOR HOUSEHOLD WORKERS If you employ a nanny, housekeeper, gardener, or other form of a household employee, you could be responsible for federal and state tax obligations. With the Household Employees Tax, you don’t need to withhold federal income taxes. Yet, you have the option to if the employee requests it and they fill out Form W-4. On the other hand, you may have to withhold Social … Read more
The good news is that it’s not just businesses that can deduct vehicle-related expenses. Vehicle expense deduction for taxpayers also can deduct them in select circumstances. The bad news is the Tax Cuts and Jobs Act (TCJA) might reduce your deduction compared to what you claimed on your 2017 return. For 2017, miles driven for business, moving, medical and charitable purposes were potentially deductible. For 2018 through 2025, business and moving miles … Read more
The March tax deadlines for pass-through entities, IPS, or S-Corporations for tax purposes. March 15th is the federal income tax filing deadline for these “pass-through” entities. Updating the deadline Until the 2016 tax year, the filing deadline for partnerships was the same as that for individual taxpayers: April 15th (or shortly thereafter if April 15th fell on a weekend or holiday). One of the primary reasons for moving up the … Read more
As the 2018 tax season quickly approaches us – now is a great time to start gathering documentation and making an appointment to meet with your CPA. Once the tax year has ended, it is typically too late to apply any strategy to reduce your 2018 business tax. Therefore, as a business owner, shifting your focus to assess whether you will owe taxes or receive a refund is essential. It … Read more
As we near the end of 2018, now is a great time to analyze the mutual fund holdings in your taxable accounts and take steps to avoid potential tax snares. Here are some helpful ideas for you to keep in mind. Understand your capital gains Capital gains are unavoidable on mutual funds by merely holding on to the shares. Near the end of the year, funds typically distribute all, or … Read more
Is your computer desktop filled with digital tax-related files that you do not know what to do with? Or are you finding your office filled with years’ worth of copies of tax documents, tax returns, receipts, canceled checks and other financial records? Although you may be tempted to get rid of everything after filing your 2017 income tax return. Here are some best practices to keep in mind. General tax document rule … Read more
Although we are coming to an end with the April 15th tax deadlines (actually was moved to April 18th this year due to IRS system issues). There are other key dates to keep in mind. Here is a list of general important tax-related forms, payments and other actions due. Please note that this list does not have all deadlines. Just the most commonly followed, so there may be other deadlines … Read more
