July 2024 – DougFreemanCPA.com

Business website expenses: How they’re handled for tax purposes

Business Equipment, Business Expenses, Depreciable Business Equipment, Small Business, Small Business Owners, Small Business Tax Tips, Small Business Tips / Douglas Freeman

Most businesses have websites today. Despite their widespread use, the IRS hasn’t issued formal guidance on when website costs can be deducted. But there are established rules that generally apply to the deductibility of business expenses and provide business taxpayers launching a website with some guidance about proper treatment. In addition, businesses can turn to […]

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Strategic planning for businesses needs to include innovation

(R&D) Research and Development, Innovation, Small Business, Small Business Owners, Strategic Business Planning / Douglas Freeman

When the leadership teams of many companies engage in strategic planning, they may be inclined to play it safe. And that’s understandable; sticking to strengths and slow, measured growth are often safe pathways to success. But substantial growth — and, in some industries, just staying competitive — calls for innovation. That’s why, as your business

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How are Series EE savings bonds taxed?

Federal Taxes, Savings Bonds, Taxes on Savings Bonds, U.S. Treasury Department / Douglas Freeman

Savings bonds are purchased by many Americans, often as a way to help fund college or show their patriotism. Series EE bonds, which replaced Series E bonds, were first issued in 1980. From 2001 to 2011, they were designated as “Patriot Bonds” as a way for Americans “to express support for our nation’s anti-terrorism efforts,”

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Closing a business involves a number of tax responsibilities

C Corporation, Federal Income Tax, Partnerships, S Corporation, Small Business, Small Business Owners, Sole Proprietors / Douglas Freeman

While many facets of the economy have improved this year, the rising cost of living and other economic factors have caused many businesses to close their doors. If this is your situation, we can help you, including taking care of various tax responsibilities. To start with, a business must file a final federal income tax

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Six tax issues to consider if you’re getting divorced

Divorce, Federal Taxes, Qualified Domestic Relations Oder (QDRO) / Douglas Freeman

Divorce entails difficult personal issues, and taxes are probably the farthest thing from your mind. However, several tax concerns may need to be addressed to ensure that taxes are kept to a minimum and that important tax-related decisions are properly made. Here are six issues to be aware of if you’re in the process of

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If your business has co-owners, you probably need a buy-sell agreement

Buy-Sell Agreement, Small Business, Small Business Owners / Douglas Freeman

Are you buying a business that will have one or more co-owners? Or do you already own one fitting that description? If so, consider installing a buy-sell agreement. A well-drafted agreement can do these valuable things: Agreement basics There are two basic types of buy-sell agreements: Cross-purchase agreements and redemption agreements (sometimes called liquidation agreements).

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Planning your estate? Don’t overlook income taxes

Capital Gains, Estate Planning, Estate Tax, Federal Estate Tax, Gift and Estate Tax / Douglas Freeman

The current estate tax exemption amount ($13.61 million in 2024) has led many people to feel they no longer need to be concerned about federal estate tax. Before 2011, a much smaller exemption resulted in many people with more modest estates attempting to avoid it. But since many estates won’t currently be subject to estate

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Be aware of the tax consequences of selling business property

Capital Gains, Federal Taxes, Ordinary Income Tax, Sale of Business Assets, Small Business, Small Business Owners, Small Business Tax Tips, Tax Laws / Douglas Freeman

If you’re selling property used in your trade or business, you should understand the tax implications. There are many complex rules that can potentially apply. To simplify this discussion, let’s assume that the property you want to sell is land or depreciable property used in your business, and has been held by you for more

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Certain charitable donations allow you to avoid taxable IRA withdrawals

AGI (Adjustable Gross Income), Charitable Donations, IRA, Qualified Charitable Distribution (QCD), Required Minimum Distributions (RMD) / Douglas Freeman

If you’re a philanthropic individual who is also obligated to take required minimum distributions (RMDs) from a traditional IRA, you may want to consider a tax-saving strategy. It involves making a qualified charitable distribution (QCD). How it works To reap the possible tax advantages of a QCD, you make a cash donation to an IRS-approved

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Consider borrowing from your corporation but structure the deal carefully

C Corporation, Closely Held Corporations, Dividend Distribution, Shareholder, Shareholder Loans, Small Business, Small Business Owners / Douglas Freeman

If you own a closely held corporation, you can borrow funds from your business at rates that are lower than those charged by a bank. But it’s important to avoid certain risks and charge an adequate interest rate. Basics of this strategy Interest rates have increased over the last couple years. As a result, shareholders

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