Deductions – DougFreemanCPA.com

10 facts about the pass-through deduction for qualified business income

AGI (Adjustable Gross Income), LLC, Partnerships, Past-Through Entities, Qualified Business Income Deducton (QBI), S Corporation, Section 199A Deduction, Sole Proprietors / Douglas Freeman

Are you eligible to take the deduction for qualified business income (QBI)? Here are 10 facts about this valuable tax break, referred to as the pass-through deduction, QBI deduction or Section 199A deduction. It’s available to owners of sole proprietorships, single-member limited liability companies (LLCs), partnerships, and S corporations. It may also be claimed by […]

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How business owners may be able to reduce tax by using an S corporation

Limited Liability Company, LLC, Medicare Taxes, S Corporation, Self Employment Tax, Small Business, Social Security / Douglas Freeman

Do you conduct your business as a sole proprietorship or as a wholly-owned limited liability company (LLC)? If so, you’re subject to both income tax and self-employment tax. There may be a way to cut your tax bill by using an S corporation. Self-employment tax basics. The self-employment tax is imposed on 92.35% of self-employment

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Numerous tax limits affecting businesses have increased for 2020

401K, HSA, Retirement, Simples, Small Business, Social Security / Douglas Freeman

An array of tax-related limits that affect businesses are annually indexed for inflation, and many have increased for 2020. Here are some that may be important to you and your business. Social Security tax. The amount of employees’ earnings that are subject to Social Security tax is capped for 2020 at $137,700 (up from $132,900

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Answers to your questions about 2020 individual tax limits

2019 Tax Return, FICA, Income Tax, Individual Income Tax, IRA, Social Security, Tax Savings / Douglas Freeman

Right now, you may be more concerned about your 2019 tax bill than you are about your 2020 tax situation. That’s understandable because your 2019 individual tax return is due to be filed in less than three months. However, it’s a good idea to familiarize yourself with tax-related amounts that may have changed for 2020.

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Small Businesses: It may not be not too late to cut your 2019 taxes

Assets, Business Deductions, Business Equipment, Business Income Tax, Deductions, Equipment, Federal Income Tax, Federal Tax Deductions, Simplified Employee Pension (SEP), Small Business, Tax Planning / Douglas Freeman

Don’t let the holiday rush keep you from taking some important steps to reduce your 2019 tax liability. You still have time to execute a few strategies, including 1. Buying assets. Thinking about purchasing new or used heavy vehicles, heavy equipment, machinery or office equipment in the new year? Buy it and place it in

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A review of significant TCJA provisions impacting individual taxpayers

529 Saving Plan, Exemptions, Gift and Estate Tax, Income Tax, Individual Income Tax, Internal Revenue Service, Tax, Tax Cuts and Job Acts (TCJA), Tax Deduction, Tax Planning, Tax Savings / Douglas Freeman

Now that 2019 has begun, there isn’t too much you can do to reduce your 2018 income tax liability. But it’s smart to begin preparing for filing your 2018 return. Because the Tax Cuts and Jobs Act (TCJA), which was signed into law at the end of 2017, likely will have a major impact on

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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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Do you need to make an estimated tax payment by September 17?

Income Tax, Individual Income Tax, Internal Revenue Service, Itemized Deduction, Tax, Tax Cuts and Job Acts (TCJA), Tax Deduction, Tax Planning, Tax Withholdings / Douglas Freeman

To avoid interest and penalties, you must make sufficient federal income tax payments long before your April filing deadline through withholding, estimated tax payments, or a combination of the two. The third 2018 estimated tax payment deadline for individuals is September 17. If you don’t have an employer withholding tax from your pay, you likely

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3 traditional midyear tax planning strategies for individuals that hold up post-TCJA

Income Tax, Individual Income Tax, Internal Revenue Service, Medical Deductions, Tax Cuts and Job Acts (TCJA), Tax Deduction, Tax Planning, Tax Savings / Douglas Freeman

With its many changes to individual tax rates, brackets and breaks, the Tax Cuts and Jobs Act (TCJA) means taxpayers need to revisit their tax planning strategies. Certain strategies that were once tried-and-true will no longer save or defer tax. But there are some that will hold up for many taxpayers. And they’ll be more

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Putting your child on your business’s payroll for the summer may make more tax sense than ever

College children on The Payroll, Income Tax, Individual Income Tax, Kiddie Tax, Small Business, Tax, Tax Cuts and Job Acts (TCJA), Working Parents / Douglas Freeman

If you own a business and have a child in high school or college, hiring him or her for the summer can provide a multitude of benefits, including tax savings. And hiring can make more sense than ever due to changes under the Tax Cuts and Jobs Act (TCJA). How it works. By shifting some

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