Federal Income Tax – Page 12 – DougFreemanCPA.com

Employee vs. independent contractor: How should you handle worker classification?

Employees, Federal Income Tax, Federal Taxes, Independent Contractors, Medicare Taxes, Small Business / Douglas Freeman

Many employers prefer to classify workers as independent contractors to lower costs, even if it means having less control over a worker’s day-to-day activities. But the government is on the lookout for businesses that classify workers as independent contractors simply to reduce taxes or avoid their employee benefit obligations. Why it matters. When your business […]

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Divorcing business owners need to pay attention to tax implications

401K, Assets, Divorce, Federal Income Tax, Gift Tax, Income Tax, IRA, Tax / Douglas Freeman

If you’re getting a divorce, you know it’s a highly stressful time. But if you’re a business owner, tax issues can complicate matters even more. Your business ownership interest is one of your biggest personal assets and your marital property will include all or part of it. Transferring property tax-free. You can generally divide most

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Understanding how taxes factor into an M&A transaction

Assets, Federal Income Tax, Limited Liability Company, LLC, Merger & Acquisition, Partnerships, S Corporation, Small Business, Stocks, Tax, Tax Cuts and Job Acts (TCJA), Tax Planning / Douglas Freeman

Merger and acquisition activity has been brisk in recent years. If your business is considering merging with or acquiring another business, it’s important to understand how the transaction will be taxed under current law. Stocks vs. assets. From a tax standpoint, a transaction can basically be structured in two ways: 1. Stock (or ownership interest).

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Beware the Ides of March — if you own a pass-through entity

2018 Tax Return, C Corporation, C Corporations, Federal Income Tax, Income Tax, Internal Revenue Service, Partnerships, Past-Through Entities, S Corporation, S Corporations, Tax, Tax Deadlines, Tax Deduction, Tax Planning / Douglas Freeman

Shakespeare’s words don’t apply just to Julius Caesar; they also apply to calendar-year partnerships, S corporations and limited liability companies (LLCs) treated as partnerships or S corporations for tax purposes. Why? The Ides of March, more commonly known as March 15, is the federal income tax filing deadline for these “pass-through” entities. Not-so-ancient history. Until

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2019 Q1 tax calendar: Key deadlines for businesses and other employers

2018 Tax Forms, Business Income Tax, Federal Income Tax, Federal Income Tax Filing, Federal Taxes, Income Tax, S Corporation, Small Business, Tax, Tax Calendar 2018, Tax Cuts and Job Acts (TCJA), Tax Deadlines, Tax Planning / Douglas Freeman

Here are some of the key tax-related deadlines affecting businesses and other employers during the first 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. January

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Buy business assets before year end to reduce your 2018 tax liability

Business Income Tax, Deductable Expenses, Federal Income Tax, Income Tax, Internal Revenue Service, Small Business, Tax, Tax Cuts and Job Acts (TCJA), Tax Deduction, Tax Planning, Tax Savings / Douglas Freeman

The Tax Cuts and Jobs Act (TCJA) has enhanced two depreciation-related breaks that are popular year-end tax planning tools for businesses. To take advantage of these breaks, you must purchase qualifying assets and place them in service by the end of the tax year. That means there’s still time to reduce your 2018 tax liability

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Donate appreciated stock for twice the tax benefits

Charitable, Donations, Federal Income Tax, Income Tax, Individual Income Tax, Internal Revenue Service, Investment, Investment Income Tax (NIIT), Itemized Deduction, Tax Cuts and Job Acts (TCJA), Tax Deduction, Tax Planning, Tax Savings / Douglas Freeman

A tried-and-true year-end tax strategy is to make charitable donations. As long as you itemize and your gift qualifies, you can claim a charitable deduction. But did you know that you can enjoy an additional tax benefit if you donate long-term appreciated stock instead of cash? 2 benefits from 1 gift. Appreciated publicly traded stock

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Research credit available to some businesses for the first time

Alternate Minimum Tax (AMT), Business Credit, Business Income Tax, Federal Income Tax, Income Tax, Internal Revenue Service, Tax, Tax Credits, Tax Cuts and Job Acts (TCJA), Tax Planning / Douglas Freeman

The Tax Cuts and Jobs Act (TCJA) didn’t change the federal tax credit for “increasing research activities,” but several TCJA provisions have an indirect impact on the credit. As a result, the research credit may be available to some businesses for the first time. AMT reform. Previously, corporations subject to alternative minimum tax (AMT) couldn’t

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Consider all the tax consequences before making gifts to loved ones

Estate Tax, Federal Income Tax, Gift Tax, Income Tax, Individual Income Tax, Tax Cuts and Job Acts (TCJA), Tax Planning / Douglas Freeman

Many people choose to pass assets to the next generation during life, whether to reduce the size of their taxable estate, to help out family members or simply to see their loved ones enjoy the gifts. If you’re considering lifetime gifts, be aware that which assets you give can produce substantially different tax consequences. Multiple

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The TCJA prohibits undoing 2018 Roth IRA conversions, but 2017 conversions are still eligible

Federal Income Tax, Income Tax, Individual Income Tax, IRA, Roth IRA, Tax Cuts and Job Acts (TCJA) / Douglas Freeman

Converting a traditional IRA to a Roth IRA can provide tax-free growth and tax-free withdrawals in retirement. But what if you convert your traditional IRA — subject to income taxes on all earnings and deductible contributions — and then discover you would have been better off if you hadn’t converted it? Before the Tax Cuts

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