You May Lose Your Charitable Deduction This Year
The new Tax Cuts and Jobs Act of 2017 (TCJA) changes the way most taxpayers will be able to deduct donations. Whether giving results in more or fewer tax benefits depends on highly individualized factors. The bottom line, however, is that seemingly huge new tax breaks may not pan out for even generous givers if […]
A New IRS Tool For Charitable Giving
It’s the season for giving, and the IRS has made it easier to find charitable opportunities that provide tax advantages, too. Its new Tax Exempt Organization Search (TEOS) replaces EO Select Check and offers advanced features like images of newly filed 990 forms and mobile-friendly searching. To take a tax deduction for charitable giving, the […]
Exit Planning And Your Taxes
Are you considering selling your business this year? What about in five years or in 10 years? Believe it or not, it can take a decade of solid planning to exit a business on top, at least when it comes to saving taxes. Business owners who skip exit planning often lose to the IRS more […]
Section 179 Or Bonus Depreciation?
Bonus depreciation rules now allow for 100% write-offs and are expanded to include big-ticket items like the purchase of used equipment. So is there any reason to expense these purchases as part of Section 179 deductions instead? Thomson Reuters Tax & Accounting offers several answers in this full article. In a nutshell: Section 179 can […]
Small Businesses: Avoid Tax-Return Fraud This Year
The IRS has seen an increase in corporate and small business tax-return fraud. From stolen employer identification numbers (EINs) to fake Schedule K-1s for S corporations, it’s important to be on the lookout for signs your business has been compromised. The most common business related tax-return fraud issues right now include those affecting Forms 1120 […]
Plaintiffs And Attorneys, Take Note: Personal Settlements Are Now Taxed 100%
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 […]
Section 179 Changes Could Mean It’s Time To Buy
Section 179 deductions just got better. For tax year 2018, the Section 179 deduction limit for property has soared to $1 million and, for equipment purchases, the cap is now set at $2.5 million. It could be a big tax-saving opportunity for small businesses—one that could be worth hundreds of thousands of dollars. The Section […]
When To Turn A Hobby Into A Business
Hobbies are a great distraction from the hustle and bustle of work. Over time, some of us become so good at our hobbies that they start providing income for us. How many cupcake bakers, woodworkers, photographers, and other hobbyists do you know who have found an extra source of income doing what they love? Are […]
Clearing The Path For Business Property Tax Breaks
While President Trump’s new administration works vigorously to unravel many of the programs put in place by President Obama, the Protecting Americans from Tax Hikes (PATH) Act of 2015 remains intact. In fact, the IRS only recently released guidance for those interested in taking advantage of laws like Section 179 for real estate improvements (see […]
Leasing Versus Buying Under The New Section 179
Now that the IRS Section 179 deduction permanently offers small businesses an immediate expense deduction of up to $500,000, some of the property you may have leased in the past could serve you better when purchased, at least from a tax deduction standpoint. According to the IRS, this property may include specific equipment, vehicles, computer […]