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 […]
Tracing Holocaust Victims’ Assets: An Investigative Auditor’s Perspective
1996, United States Senator Alfonse M. D’Amato, Chairman of the Senate Banking Committee, began an inquiry into Swiss banks’ involvement in hiding Holocaust victims’ assets. Specifically, the inquiry examined the procedures by which the Swiss banks conducted the initial search in 1995 that stated that only 893 accounts were found, holding $32 million. The committee […]
Growing Business, Mounting Employment Taxes: A Bankler Case Study
Business growth is great. It’s the American dream. But without the right team on your side, the IRS can quickly turn that dream into a nightmare. “I failed to realize that middle management was the key to making it all work,” a business owner—now a Steven Bankler, CPA, Ltd. client—confessed when explaining how his company’s […]
Divorce And The Family Business
You won’t own your business forever. Many small business owners neglect to acknowledge that simple fact. Perhaps your exit will be planned to perfection and you’ll either sell to a third-party or leave via a strategic family succession plan. Or maybe life will throw you a curveball. Divorce is certainly one of those curveballs that […]
Employee Fraud Is More Common Than You Think
Is someone at your business “cooking the books” behind your back? Don’t bet against it. According to the Association of Certified Fraud Examiners (ACFE), small businesses (with fewer than 100 employees) average 28 percent more fraud losses than large businesses. On average, those businesses lost more than $150,000 each. The ACFE recently provided methods to […]