4Thought Blog

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Trump’s Tax Plan: The Potential Impact on Your Business

Posted by Concannon Miller on Thu, Jun 29, 2017

President Trump has proposed a 15% federal income tax rate on business income — whether it’s earned by a traditional C corporation or by a pass-through entity such as an S corporation, limited liability company (LLC), partnership or sole proprietorship. If the 15% rate becomes law, what new tax planning opportunities might be opened up? And what limitations might Congress impose on that ultra-low 15% rate to prevent too much tax revenue leakage?

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Topics: Business tax planning

The American Health Care Act: What Business Owners Should Know

Posted by Concannon Miller on Thu, Jun 15, 2017

The health care debate in Washington is far from settled. President Trump this week called the American Health Care Act passed by the House in early May “mean” and Republican Senators are working on their own version of the bill.

But it’s likely some portions of the AHCA will make it into the Senate bill. Here’s what business owners should know about it:

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Topics: Business tax planning, Health care

Buy a Boat, Plus 9 Other Ways to Cut Taxes This Summer

Posted by Concannon Miller on Tue, May 30, 2017

Memorial Day marked the start of Summer 2017, but the forecast for Washington remains unclear as officials continue to discuss various tax-related issues.

No matter what happens in Washington, don't get stuck in a holding pattern yourself. Give some attention to business and personal tax planning this summer. Here are 10 ideas that combine tax planning with summertime fun.

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Topics: Business tax planning, Individual tax planning

Pennsylvania’s Tax Amnesty Program: How to Get a Discount on Delinquent Taxes

Posted by Harry Pietrouchie on Mon, May 1, 2017

If you owe personal or business taxes to the state of Pennsylvania, now’s a good time to consider paying up.

The State of Pennsylvania recently enacted a Tax Amnesty Program, its first since 2010. Through June 19, 2017, the state has authorized a tax amnesty program that will waive all penalties and half of the interest owed on eligible tax delinquencies.

Any taxes administered by the Pennsylvania Department of Revenue are eligible for the amnesty program, including both business and personal taxes.

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Topics: Business tax planning, Individual tax planning

Car Depreciation Rules for Business Owners: What You Need to Know for 2017

Posted by Concannon Miller on Tue, Apr 18, 2017

For business owners who own a company vehicle, there are some new tax write-off figures to be aware of.

The IRS last month issued the 2017 inflation adjustments to the depreciation limitations for certain business vehicles. The new depreciation amounts are for vehicles that are placed in service in 2017 and to which first-year bonus depreciation applies.

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Topics: Business tax planning

Don’t Miss the New FBAR Filing Deadline – It’s Fast Approaching

Posted by Concannon Miller on Tue, Mar 28, 2017

Do you have an interest in — or authority over — a foreign financial account? If so, the IRS wants you to provide information about the account by filing a form called the "Report of Foreign Bank and Financial Accounts" (FBAR).

The annual deadline for filing FBARs has been changed. It now coincides with the tax filing deadlines for individuals, under the Surface Transportation and Veterans Health Care Choice Improvement Act of 2015. So, for accounts held in 2016, you must generally file FBARs by April 18, 2017. (Formerly, the deadline was June 30, excluding weekends and holidays.)

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Topics: Business tax planning, Individual tax planning

Small Business Owners Can Still Save on Taxes by Establishing a Pension

Posted by Concannon Miller on Tue, Mar 21, 2017

Simplified Employee Pensions are stripped-down retirement plans intended for self-employed individuals and small businesses. If you don't already have a tax-favored retirement plan set up for your business, consider establishing a SEP — plus, if you act quickly enough, you can claim a deduction for your initial SEP contribution on your 2016 tax return.

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Topics: Business tax planning

Own a Business With Your Spouse? Check Out These Self-Employment Tax Reduction Strategies

Posted by Concannon Miller on Thu, Mar 16, 2017

If you own a profitable, unincorporated business with your spouse, you're probably fed up with high self-employment (SE) tax bills.

An unincorporated business in which both spouses are active is typically treated as a partnership that's owned 50/50 by the spouses — or a limited liability company (LLC) that's treated as a partnership for tax purposes and owned 50/50 by the spouses. In either case, you and your spouse must separately calculate your respective SE tax bills.

For 2017, that means you'll each pay the maximum 15.3% SE tax rate on the first $127,200 of your respective shares of net SE income from the business. (See "Self-Employment Tax Basics" below.) Those bills can mount up if your business is profitable. Here are three ways spouse-owned businesses can lower their combined SE tax hit.

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Topics: Business tax planning

How Businesses Can Save Federal Employment Taxes: Become an S Corporation

Posted by Concannon Miller on Thu, Mar 9, 2017

If you own an unincorporated small business, you may be getting fed up with high self-employment (SE) tax bills. One way to lower your SE tax liability is to convert your business to an S corporation.

SE Tax Basics

Sole proprietorship income as well as partnership income that flows through to partners (except certain limited partners) is subject to SE tax. These rules also apply to single-member limited liability companies (LLCs) that are treated as sole proprietorships for federal tax purposes and multimember LLCs that are treated as partnerships for federal tax purposes.

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Topics: Business tax planning

Restaurants, Retail & Real Estate: A Key Tax Deduction for Business Owners

Posted by Concannon Miller on Tue, Feb 28, 2017

The Section 179 deduction for qualified real property expenses was made permanent under the Protecting Americans from Tax Hikes (PATH) Act of 2015. However, claiming this deduction isn't a no-brainer. Here are the pros and cons.

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Topics: Business tax planning

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