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Taxable Income

The new law includes a game-changer for business payment reporting

Federal Taxes, Form 1099-K, Form 1099-Misc, Form 1099-NEC, Independent Contractors, One, Big, Beautiful Bill Act, Small Business, Small Business Owners, Taxes 2025 /

The One, Big Beautiful Bill Act (OBBBA) contains a major overhaul to an outdated IRS requirement. Beginning with payments made in 2026, the new law raises the threshold for information reporting on certain business payments from $600 to $2,000. Beginning in 2027, the threshold amount will be adjusted for inflation. The current requirement: $600 threshold […]

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The QBI deduction and what’s new in the One, Big, Beautiful Bill Act

Federal Taxes, One, Big, Beautiful Bill Act, Partnerships, Past-Through Entities, Qualified Business Income Deducton (QBI), Real Estate, S Corporation, Small Business, Small Business Owners, Sole Proprietors, Tax Tips on Real Estate Purchases, Taxes 2025, Taxes and Tips /

The qualified business income (QBI) deduction, which became effective in 2018, is a significant tax benefit for many business owners. It allows eligible taxpayers to deduct up to 20% of QBI, not to exceed 20% of taxable income. It can also be claimed for up to 20% of income from qualified real estate investment trust

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Bartering is a taxable transaction even if no cash is exchanged

Barter Clubs, Bartering, Federal Taxes, Small Business, Small Business Owners, Small Business Tax Tips /

If your small business is strapped for cash (or likes to save money), you may find it beneficial to barter or trade for goods and services. Bartering isn’t new — it’s the oldest form of trade — but the internet has made it easier to engage in with other businesses. However, if your business begins

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4 ideas that may help reduce your 2023 tax bill

Charitable Contributions, Federal Tax Deductions, Retirement, Small Business, Small Business Owners, Small Business Tax Tips, Stocks, Taxes 2023 /

If you’re concerned about your 2023 tax bill, there may still be time to reduce it. Here are four quick strategies that may help you trim your taxes before year-end. 1. Accelerate deductions and/or defer income. Certain tax deductions are claimed for the year of payment, such as the mortgage interest deduction. So, if you

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There still may be time to reduce your small business 2023 tax bill

Business Income Tax, Depreciation Deduction (Section 179), Federal Taxes, Small Business, Small Business Owners, Small Business Tax Tips, Tax Savings, Taxes 2023 /

In the midst of holiday parties and shopping for gifts, don’t forget to consider steps to cut the 2023 tax liability for your business. You still have time to take advantage of a few opportunities. Time deductions and income. If your business operates on a cash basis, you can significantly affect your amount of taxable

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Plan now for year-end gifts with the gift tax annual exclusion

Estate Planning, Estate Tax, Gift and Estate Tax, Gift Tax /

Now that Labor Day has passed, the holidays are just around the corner. Many people may want to make gifts of cash or stock to their loved ones. By properly using the annual exclusion, gifts to family members and loved ones can reduce the size of your taxable estate, within generous limits, without triggering any

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The tax consequences of employer-provided life insurance

Federal Taxes, Fringe Benefits For Employees, Income Tax, Insurance, Life Insurance, Small Business Tax Tips /

If your employer provides life insurance, you probably find it to be a desirable fringe benefit. However, if group term life insurance is part of your benefits package, and the coverage is higher than $50,000, there may be undesirable income tax implications. You’re taxed on income you didn’t receive. The first $50,000 of group term

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Use the tax code to make business losses less painful

Business Deductions, Net Operating Loss (NOL), Small Business, Small Business Owners, Small Business Tax Tips, Tax Code, Tax Cuts and Job Acts (TCJA) /

Whether you’re operating a new company or an established business, losses can happen. The federal tax code may help soften the blow by allowing businesses to apply losses to offset taxable income in future years, subject to certain limitations. Qualifying for a deduction. The net operating loss (NOL) deduction addresses the tax inequities that can

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Do you qualify for the QBI deduction? And can you do anything by year-end to help qualify?

Business Deductions, Qualified Business Income Deducton (QBI), Small Business, Sole Proprietors /

If you own a business, you may wonder if you’re eligible to take the qualified business income (QBI) deduction. Sometimes this is referred to as the pass-through deduction or the Section 199A deduction. The QBI deduction is: Available to owners of sole proprietorships, single-member limited liability companies (LLCs), partnerships, and S corporations, as well as

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Choosing a retirement plan for your small business

401K, Employee Benefits, Employees, Retirement, Roth IRA, Savings Incentives Match Plans for Employees (SIMPLEs), Small Business /

Most growing small businesses reach a point where the owner looks around at the leadership team and says, “It’s time. We need to offer employees a retirement plan.” Often, this happens when the company is financially stable enough to administer a retirement plan and make substantive contributions. Other times it occurs when the business grows

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