4Thought Blog

4_thought_blog_graphic-red_border_-_sides_only.jpg

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.

Read More

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.

Read More

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.)

Read More

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.

Read More

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.

Read More

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.

Read More

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.

Read More

Topics: Business tax planning

Pennsylvania Budget Proposal Seeks $1 Billion in Business Tax Changes

Posted by Tony Deutsch on Tue, Feb 14, 2017

Pennsylvania Gov. Tom Wolf’s proposed 2017-18 budget contains no broad-based tax increases, but does include some important tax changes for the state’s businesses.

The $32.3 billion spending plan – which the Governor unveiled Feb. 7 to a joint session of the Pennsylvania General Assembly – includes about $1 billion in new, recurring revenues.

Overall spending increases by $670 million, or 2.1 percent, above the current 2016-2017 budget. The proposal includes increase spending for public education, special education, early childhood education, and higher education, but it also identifies a number of opportunities for cost savings and spending reductions of over $2 billion that appear to have bipartisan support.

Read More

Topics: Business tax planning

10 Tax Changes That Could Affect Your 2016 Return

Posted by Concannon Miller on Thu, Feb 2, 2017

Several significant tax developments happened last year that may affect federal income tax returns that individual and business taxpayers file in 2017. Here's a quick look at 10 key changes that you should be aware of during this tax season.

Read More

Topics: Business tax planning, Individual tax planning

Business Tax Tip: Expand Deductions by Donating Inventory

Posted by Concannon Miller on Tue, Jan 10, 2017

Does your C corporation have slow-moving inventory or computer equipment taking up valuable warehouse space? Of course, you could liquidate it or hold a discount sale, but you might be better off donating it to charity.

Read More

Topics: Business tax planning

Subscribe for more Timely Tips for Businesses