Advisory & Consulting

Advisory & Consulting

March 19, 2020 Accounting, Advisory & Consulting, Tax Planning, Taxes

Looking for Quick Cash? Try to Avoid Retirement Savings

Category: Retirement PlanningTags: IRA, Retirement Article Highlights: Early-Withdrawal Penalties  Reduction in Retirement Savings  Exceptions from the Early-Withdrawal Penalty  If you find yourself looking for a quick source of cash, your retirement savings may look like a tempting option. However, if you are under age 59½ and withdraw money from a traditional IRA or qualified retirement account, you will likely pay both income tax and a 10% early-distribution tax (also referred to as a penalty) on any previously untaxed money that you take out. Withdrawals you make from a SIMPLE IRA before age 59½ and those you make during the 2-year rollover restriction period after establishing the SIMPLE IRA may be subject to a

March 26, 2019 Advisory & Consulting, Tax Planning, Taxes

The Tax Filing Deadline Is Around the Corner

Category: Tax Central Tags: Taxes Article Highlights: Extensions Balance-Due Payments Contributions to Roth or Traditional IRAs Estimated Tax Payments for the First Quarter of 2019 Individual Refund Claims for the 2015 Tax Year As a reminder to those who have not yet filed their 2018 tax returns, April 15, is the due date to either file a return (and pay the taxes owed) or file for an automatic six-month extension (and pay the an estimate of the taxes owed). Caution should be exercised when preparing the extension application, which is IRS Form 4868. Even though this form is described as “automatic,” the extension is automatically granted only if it includes a reasonable

August 22, 2018 Advisory & Consulting, Business, Tax Planning, Taxes

IRS Regulations Clarify Business Pass-Through Deduction

  Category: For Business Tags: Tax Planning Article Highlights: Trade or Business Definition Qualified Business Income Limitation Thresholds Specified Service Trade or Business Reputation or Skill Wage Limitation Proper Wage Allocation Qualified Property Depreciable Period Bonus Depreciation and Sec 179 Negative QBI and Carryovers Multiple Activities REITS and Publicly Traded Partnerships Anti-Cracking Provisions Some of the major provisions of last year’s tax reform legislation were the many benefits provided for businesses, including cutting the C corporation tax rate to 21%. Not to leave out other forms of business, the bill also included what was termed the 20% pass-through deduction that applies to sole proprietorships, partnerships, s-corporations and the like. The short-hand title

May 2, 2018 Advisory & Consulting, Business, Tax Planning, Taxes

Preparing for Taxes for 2018 and Beyond

Category: For Business, Tax Central Tags: Tax Planning, Tax Reform Article Highlights: Increase In Standard Deduction Loss of Personal Exemptions Changes to Itemized Deductions Bunching Strategy Employee Business Expenses Business Expensing 20% Flow-through Income Deduction Change in Treatment of Alimony Casualty Losses, Home Equity Interest and Moving No Longer Deductible Tax reform has changed the way most taxpayers need to think about and plan for their taxes. It is no longer business as usual, and those who think it is are in for a rude awakening come tax time next year. For most taxpayers, the most significant change is the increase in their standard deduction, which on the surface seems like a big benefit.

January 10, 2018 Advisory & Consulting, Compliance

1099 Filing Date Just Around The Corner

Category: For Business Tags: Tax Planning Article Highlights: Independent Contractors 1099 Filing Requirement Due Dates Penalties Form W-9 and 1099 Worksheet If you operate a business and engage the services of an individual (independent contractor) other than one who meets the definition of an employee, and you pay him or her $600 or more for the calendar year, you are required to issue the individual a Form 1099-MISC soon after the end of the year to avoid penalties and the prospect of losing the deduction for his or her labor and expenses in an audit. The due date for mailing the recipient his or her copy of the 1099-MISC that reports 2017

Accounting, Advisory & Consulting, Business, Tax Planning, Taxes

2018 Pocket Tax Guide Online Edition

Category: Tax Central Tags: Tax Planning It has been a busy time for tax-related news and upcoming changes. We have compiled many of the tax changes, deductions and tax rates for easy reference year round. It is more important than ever to plan ahead and review your options to maximize your financial results. Also please visit our side-by-side comparison of 2017 tax law and the recently enacted “Tax Cuts and Jobs Act.” HIGHLIGHTS OF THE CHANGES AFFECTING 2018 Congress in December of 2017 passed the Tax Cuts and Jobs Act that made sweeping changes to the tax laws. The issues impacting individuals and small businesses are included throughout this pocket tax guide.

August 16, 2017 Advisory & Consulting, Tax Planning, Taxes

Preparing for Your Child’s Future Education

Category: Education Planning Tags: Tax Credit Article Highlights: Sec. 529 plans Coverdell Education Savings Accounts American Opportunity Tax Credit The Lifetime Learning Credit Qualified Education Loan Interest Figuring out how to pay for your child’s trade school or college education can be challenging, and the earlier you create your plan and begin executing it, the greater your chances are of having the needed money set aside to pay for it. The government provides a variety of tax incentives to help defray the cost of education. Some require long-term planning to provide the most benefit, while others provide current tax deductions or credits. The benefits generally apply to both vocational schools and colleges.

February 3, 2017 Advisory & Consulting, Business, Tax Planning, Taxes

Small Business – The future of pass-through entities and taxes

  Category: For BusinessTags: Growing your Business According to the Tax Foundation, 90% of United States (US)-based businesses are pass-through entities, such as S corporations, partnerships, and sole proprietorships. These businesses employ the majority of the private-sector workforce and provide nearly half of all business income. Income from these entities is passed through to the owner’s individual tax returns. With the change in leadership in Washington, several proposals will most likely change the way in which these entities are taxed, making it more advantageous to be a small business owner. Types of Business Structures A number of pros and cons exist for each type of business structure depending on the

September 28, 2016 Accounting, Advisory & Consulting, Compliance, Taxes

Don’t Be Left Holding the Tax Bag

  Category: For BusinessTags: Tax Planning, Taxes Article Highlights: Paying Independent Contractors  1099-MISC Reporting Threshold  Form W-9 Benefits  Penalties  Due Date  If you use independent contractors in your business and pay them $600 or more during the calendar year, you are required to issue them a 1099-MISC after the close of the year. If you fail to do so, and your (if you operate as a Schedule C sole proprietor) or your business’s income tax return is subsequently audited, you could lose the deduction for those payments and end up paying taxes on that income yourself, not to mention potential penalties. A big tax trap for businesses is the $600

September 1, 2016 Accounting, Advisory & Consulting, Business, QuickBooks

Avoid These 4 Common Small Business Accounting Mistakes

  Category: For BusinessTags: Business Expenses, Employee Article Highlights: Reporting employees as independent contractors  Not reconciling bank accounts regularly  Forgetting to record payments against open invoices  Not understanding the differences between cash flow and profit  When you decided to open for business, you had a vision for the future. You identified a need and came up with a solution you could provide and sell, and you invested your time, your money, your knowledge, and your drive to make it into a reality. The only problem in this scenario, if you’re like a lot of small business owners, is that you did not anticipate having to handle your business’s accounting needs.