Business Income Tax

Intangible assets: How must the costs incurred be capitalized?

These days, most businesses have some intangible assets. The tax treatment of these assets can be complex. What makes intangibles so complicated? IRS regulations require the capitalization of costs to: Acquire or create an intangible asset, Create or enhance a separate, distinct intangible asset, Create or enhance a “future benefit” identified in IRS guidance as …

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Separating your business from its real estate

Assets, Business Income Tax, C Corporation, Capital Gains, Estate Planning, Income Tax, LLC, Partnerships, Past-Through Entities, Real Estate, Small Business Owners / By Douglas Freeman

Does your business need real estate to conduct operations? Or does it otherwise hold property and put the title in the name of the business? You may want to rethink this approach. Any short-term benefits may be outweighed by the tax, liability, and estate planning advantages of separating real estate ownership from the business. Tax …

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Year-end tax planning ideas for your small business

Accrual-Basis Taxpayers, Business Deductions, Business Income Tax, Depreciation Deduction (Section 179), Federal Taxes, Qualified Business Income Deducton (QBI), Small Business Owners, Uncategorized / By Douglas Freeman

Now that Labor Day has passed, it’s a good time to think about making moves that may help lower your small business taxes for this year and next. The standard year-end approach of deferring income and accelerating deductions to minimize taxes will likely produce the best results for most businesses, as will bunching deductible expenses …

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Partners may have to report more income on tax returns than they receive in cash

Business Income Tax, C Corporation, Capital Gains, Income Tax, Partnerships, Qualified Charitable Distribution (QCD) / By Douglas Freeman

Are you a partner in a business? You may have come across a situation that’s puzzling. In a given year, you may be taxed on more partnership income than was distributed to you from the partnership in which you’re a partner. Why does this happen? It’s due to the way partnerships and partners are taxed. …

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The tax mechanics involved in the sale of trade or business property

Business Income Tax, Business owned Property, Capital Gains, Federal Income Tax, Ordinary Income Tax, Tax Planning / By Douglas Freeman

There are many rules that can potentially apply to the sale of business property. Thus, to simplify 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 than a year. (There are different rules for property held primarily …

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Taking the opposite approach: Ways your business can accelerate taxable income and defer deductions

Assets, Business Income Tax, Deductions, Federal Income Tax, LLC, Partnerships, Past-Through Entities, S Corporation, Small Business, Small Business Owners / By Douglas Freeman

Typically, businesses want to delay recognition of taxable income into future years and accelerate deductions into the current year. But when is it prudent to do the opposite? And why would you want to? One reason might be tax law changes that raise tax rates. There have been discussions in Washington about raising the corporate …

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Many factors are involved when choosing a business entity

Alternate Minimum Tax (AMT), Business Income Tax, C Corporation, Compensation, Federal Income Tax, LLC, Partnerships, Past-Through Entities, Qualified Business Income Deducton (QBI), S Corporation, Shareholder, Small Business, Sole Proprietors / By Douglas Freeman

Are you planning to launch a business or thinking about changing your business entity? If so, you need to determine which entity will work best for you — a C corporation or a pass-through entity such as a sole-proprietorship, partnership, limited liability company (LLC) or S corporation. There are many factors to consider and proposed …

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2021 Q4 tax calendar: Key deadlines for businesses and other employers

2021 Tax Calendar, Business Income Tax, C Corporation, FICA, Income Tax, Simplified Employee Pension (SEP), Tax, Tax Calendar, Tax Deadlines / By Douglas Freeman

Here are some of the key tax-related deadlines affecting businesses and other employers during the fourth quarter of 2021. Keep in mind that this list isn’t all-inclusive, so there may be additional deadlines that apply to you. Contact us to ensure you’re meeting all applicable deadlines and to learn more about the filing requirements. Note: …

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Is an S corporation the best choice of entity for your business?

Business Income Tax, S Corporations, Small Business, Tax Deduction, Tax Planning / By Douglas Freeman

Are you thinking about launching a business with some partners and wondering what type of entity to form? An S corporation may be the most suitable form of business for your new venture. Here’s an explanation of the reasons why. The biggest advantage of an S corporation over a partnership is that as S corporation …

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What are the tax implications of buying or selling a business?

Business Income Tax, C Corporation, Federal Income Tax, Partnerships, Past-Through Entities, S Corporation, Small Business, Tax Planning / By Douglas Freeman

Merger and acquisition activity in many industries slowed during 2020 due to COVID-19. But analysts expect it to improve in 2021 as the country comes out of the pandemic. If you are considering buying or selling another business, it’s important to understand the tax implications. Two ways to arrange a deal. Under current tax law, …

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