Uncategorized – DougFreemanCPA.com

When businesses may want to take a contrary approach with income and deductions

Business Deductions, Business Income Tax, Capital Gains, Corporate Federal Income Tax Rate, Depreciation Deduction (Section 179), Uncategorized / Douglas Freeman

Businesses usually want to delay recognition of taxable income into future years and accelerate deductions into the current year. But when is it wise to do the opposite? And why would you want to? One reason might be tax law changes that raise tax rates. The Biden administration has proposed raising the corporate federal income […]

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Does your business have employees who get tips? You may qualify for a tax credit

Federal Tax Credit, FICA, Restaurant Owners, Small Business Tax Tips, Small Business Tips, Uncategorized / Douglas Freeman

If you’re an employer with a business where tipping is routine when providing food and beverages, you may qualify for a federal tax credit involving the Social Security and Medicare (FICA) taxes that you pay on your employees’ tip income. Credit fundamentals. The FICA credit applies to tips that your staff members receive from customers

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Tax-wise ways to save for college

529 Saving Plan, AGI (Adjustable Gross Income), Coverdell Education Savings Account (ESA), Education Tax Breaks, Modified Adjusted Gross Income (MAGI), Savings Bonds, Uncategorized / Douglas Freeman

If you’re a parent or grandparent with college-bound children, you may want to save to fund future education costs. Here are several approaches to take maximum advantage of the tax-favored ways to save that may be available to you. Savings bonds. Series EE U.S. savings bonds offer two tax-saving opportunities when used to finance college

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Renting to a relative? Watch out for tax traps

Depreciation Deduction (Section 179), Income Tax, Rental Property, Uncategorized / Douglas Freeman

If you own a home and rent it to a relative, you may be surprised to find out there could be tax consequences. Quick rundown of the rules.

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2023 Q1 tax calendar: Key deadlines for businesses and other employers

2023 Tax Calendar, S Corporation, Tax Deadlines, Tax Planning, Uncategorized / Douglas Freeman

Here are some of the key tax-related deadlines affecting businesses and other employers during the first quarter of 2023. Keep in mind that this list isn’t all-inclusive, so there may be additional deadlines that apply to you. If you have questions about filing requirements, contact us. We can ensure you’re meeting all applicable deadlines.

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Does your family business’s succession plan include estate planning strategies?

Estate Planning, Federal Estate Tax, FLP (Family Limited Partnership), Gift and Estate Tax, Trust, Uncategorized / Douglas Freeman

Family-owned businesses face distinctive challenges when it comes to succession planning. For example, it’s important to address the distinction between ownership succession and management succession. When a nonfamily business is sold to a third party, ownership and management succession typically happen simultaneously. However, in the context of a family business, there may be reasons to

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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 / 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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The Inflation Reduction Act: what’s in it for you?

Clean Vehicle Credit, Federal Tax Credit, Inflation Reduction Act, Modified Adjusted Gross Income (MAGI), New Clean Vehicle Credit, Nonbusiness Energy Property, Residential Clean-Energy Credit, Uncategorized / Douglas Freeman

You may have heard that the Inflation Reduction Act (IRA) was signed into law recently. While experts have varying opinions about whether it will reduce inflation in the near future, it contains, extends and modifies many climate and energy-related tax credits that may be of interest to individuals. Nonbusiness energy property. Before the IRA was

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Evaluating an ESOP from a succession planning perspective

401K, Employee Stock Ownership Plans, ERISA (Employee Retirement Income Security Act, Succession Plans, U.S. Department of Labor, Uncategorized / Douglas Freeman

If you’ve been in business for a while, you’ve probably considered many different employee benefits. One option that might have crossed your desk is an employee stock ownership plan (ESOP). Strictly defined, an ESOP is considered a retirement plan for employees. But it can also play a role in succession planning by facilitating the transfer

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Could your business benefit from the tax credit for family and medical leave?

Compensation, Deductions, Employee Benefits, Federal Tax Credit, Qualifying Leave for Family Medical Leave, Small Business, Tax Credits, Tax Cuts and Job Acts (TCJA), Uncategorized / Douglas Freeman

The Tax Cuts and Jobs Act created a new federal tax credit for employers that provide qualified paid family and medical leave to their employees. It’s subject to numerous rules and restrictions and the credit is only available for two tax years — those beginning between January 1, 2018, and December 31, 2019. However, it

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