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Business Income Tax

The chances of an IRS audit are low, but business owners should be prepared

Audits, Business Audit, Business Income Tax /

Many business owners ask: How can I avoid an IRS audit? The good news is that the odds against being audited are in your favor. In the fiscal year 2018, the IRS audited approximately 0.6% of individuals. Businesses, large corporations, and high-income individuals are more likely to be audited but, overall, audit rates are historically […]

The chances of an IRS audit are low, but business owners should be prepared Read More »

Should you elect S corporation status?

Business Income Tax, Federal Taxes, Internal Revenue Service, S Corporation, Small Business, Social Security, Social Security & Medicare (FICA) taxes, Tax, Tax Cuts and Job Acts (TCJA), Tax Savings /

Operating a business as an S corporation may provide many advantages, including limited liability for owners and no double taxation (at least at the federal level). Self-employed people may also be able to lower their exposure to Social Security and Medicare taxes if they structure their businesses as S corps for federal tax purposes. But

Should you elect S corporation status? Read More »

Take a closer look at home office deductions

Business Deductions, Business Income Tax, Deductable Expenses, Deductions, Home Office Deduction, Income Tax, Self Employed, Small Business, Tax Cuts and Job Acts (TCJA), Tax Planning, Tax Record Retention /

Working from home has its perks. Not only can you skip the commute, but you also might be eligible to deduct home office expenses on your tax return. Deductions for these expenses can save you a bundle, if you meet the tax law qualifications. Under the Tax Cuts and Jobs Act, employees can no longer

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Which entity is most suitable for your new or existing business?

Business Income Tax, C Corporation, Capital Gains, Income Tax, Limited Liability Company, LLC, Partnerships, Past-Through Entities, Qualified Business Income Deducton (QBI), S Corporation, Small Business, Sole Proprietors, Tax Cuts and Job Acts (TCJA) /

The Tax Cuts and Jobs Act (TCJA) has changed the landscape for business taxpayers. That’s because the law introduced a flat 21% federal income tax rate for C corporations. Under prior law, profitable C corporations paid up to 35%. The TCJA also cut individual income tax rates, which apply to sole proprietorships and pass-through entities,

Which entity is most suitable for your new or existing business? Read More »

2019 Q3 tax calendar: Key deadlines for businesses and other employers

2019 Tax Forms, Business Income Tax, C Corporation, Contributions, Federal Income Tax, Federal Taxes, Income Tax, Partnerships, Retirement, S Corporation, Tax Deadlines, Tax Planning /

Here are some of the key tax-related deadlines affecting businesses and other employers during the third quarter of 2019. 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. July

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Hiring this summer? You may qualify for a valuable tax credit

Business Income Tax, Deductions, Employees, Summer Employees, Tax Credits, WOTC /

Is your business hiring this summer? If the employees come from certain “targeted groups,” you may be eligible for the Work Opportunity Tax Credit (WOTC). This includes youth whom you bring in this summer for two or three months. The maximum credit employers can claim is $2,400 to $9,600 for each eligible employee. 10 targeted

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Hire Your Children This Summer: Everyone Wins

401 K, Business Income Tax, College children on The Payroll, Income Tax, Individual Income Tax, Roth IRA, Small Business /

If you’re a business owner and you hire your children (or grandchildren) this summer, you can obtain tax breaks and other nontax benefits. The kids can gain on-the-job experience, save for college and learn how to manage money. And you may be able to: Shift your high-taxed income into tax-free or low-taxed income, realize payroll

Hire Your Children This Summer: Everyone Wins Read More »

The home office deduction: Actual expenses vs. the simplified method

2018 Tax Return, Actual Expenses Method, Business Income Tax, Deductable Expenses, Deductions, Depreciation, Home Office Deduction, Income Tax, Small Business, Tax, Tax Deduction /

If you run your business from your home or perform certain functions at home that are related to your business, you might be able to claim a home office deduction against your business income on your 2018 income tax return. Thanks to a tax law change back in 2013, there are now two methods for

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Some of your deductions may be smaller (or nonexistent) when you file your 2018 tax return

2018 Tax Return, Business Income Tax, Deductable Expenses, Deductions, Income Tax, Individual Income Tax, Small Business, State Tax, Tax, Tax Cuts and Job Acts (TCJA), Tax Deduction /

While the Tax Cuts and Jobs Act (TCJA) reduces most income tax rates and expands some tax breaks, it limits or eliminates several itemized deductions that have been valuable to many individual taxpayers. Here are five deductions you may see shrink or disappear when you file your 2018 income tax return: 1. State and local

Some of your deductions may be smaller (or nonexistent) when you file your 2018 tax return Read More »

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