It Can Take 10 Years To Retire Right, And Here’s Why
Meet Ted. Ted is a C Corp owner who is ready to retire by selling his $1 million worth of stock in the business. Not a bad retirement, right? Let’s take a closer look. The long-term capital gains tax for Ted is $240,000. And the buyer? His tax bill is even worse. Let’s say, in […]
Bonus Depreciation Relief For Some 2017-18 Purchases
The IRS will now permit taxpayers to change their bonus depreciation treatment for property acquired after Sept. 27, 2017, and placed in service during a tax year that includes Sept. 28, 2017. Business owners rejoiced when Section 168 of the tax code was changed in 2018, doubling the bonus depreciation allowed, expanding the definition for […]
No Uber For The Tax Man
Are auditors and other IRS agents allowed to get a ride from a ridesharing service–or even a friend or family member–to a taxpayer’s home or place of business? It depends on whether doing so violates the taxpayer’s privacy rights. That’s the conclusion of the IRS Office of the Chief Counsel in a recent legal opinion. […]
Five IRS Audit Mistakes To Avoid
The IRS audits about 1 million taxpayers each year. While the agency is understaffed, that doesn’t mean you’ll slip through the cracks. IRS software automates the selection process now by flagging returns that show abnormalities: Perhaps the return deviates from what’s normally filed, or it’s been linked to a family member, investor, or business partner […]
5 IRS Audit Mistakes To Avoid
The IRS audits about one million taxpayers each year. While the agency is understaffed, that doesn’t mean you’ll slip through the cracks. IRS software automates the selection process now by flagging returns that show abnormalities: Perhaps the return deviates from what’s normally filed, or it’s been linked to a family member, investor, or business partner […]
Taxability Of Employee Snacks Versus Meals
Here’s something to chew on: The IRS continues to clarify its position on deducting the cost of free food provided to employees. This time, office snacks get a delicious boost while other meals lose their deductibility entirely. The Tax Cuts and Jobs Act (TCJA) reduced the tax breaks employers can receive when feeding employees, but […]
The Downside To Overworking
Always working? New research shows a startling downside for being overly “productive.” It doesn’t work, and it can actually shorten your life. Researchers at Columbia University Medical Center and five other universities found that employees who work 13+ hours a day at desk jobs are twice as likely to die prematurely than those who spend […]
Monsanto Settlements: The IRS Is The Biggest Winner
Lawsuit settlements just became more profitable…for the IRS. Under the new tax code, most personal claims are now taxed at 100% with no deduction for legal fees. That’s right: In those cases, the plaintiff will be taxed on the fees paid to the attorney and so will the attorney who receives them! Here are some […]
Small Contractor Tax Relief: Do You Qualify?
If you’re a small business contractor with annual gross receipts averaging $25 million or less in the past three-year period, the recent tax changes may have given you a valuable leg up. The small contractor exemption threshold has increased for the first time since 1986, allowing more building contractors to pick the accounting option that […]
Employee Theft Could End Your Business
Fraud is all around us these days, but it’s not just strangers who find us vulnerable. Your own employees could be stealing from you. The problem can be especially devastating for small business owners, who surprisingly tend to lose the most. The Association of Certified Fraud Examiners (ACFE) conducts the foremost study in the area […]