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

Posted by Thomson Reuters 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 Thomson Reuters 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 Thomson Reuters 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 Thomson Reuters 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 Thomson Reuters 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

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.

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Topics: Business tax planning

10 Tax Changes That Could Affect Your 2016 Return

Posted by Thomson Reuters 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.

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Topics: Business tax planning, Individual tax planning

Business Tax Tip: Expand Deductions by Donating Inventory

Posted by Thomson Reuters 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.

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Topics: Business tax planning

Attention Business Owners: Some Tax Filing Dates Have Changed

Posted by Thomson Reuters on Thu, Dec 22, 2016

Thanks to two laws that passed last year, the due dates have been changed for some information returns and related statements and for some business tax returns. Here's what you need to know:

Earlier Due Dates for Forms 1099-MISC and W-2

When a business pays non-employee compensation aggregating to $600 or more to a single payee in a tax year, the business must file a Form 1099-MISC to report the payments to the IRS. Similarly, employers must report wages paid to employees on Forms W-2. Copies of these forms (called payee statements) must also be supplied to payment recipients.

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Topics: Business tax planning

Purchase Business Equipment Now for Optimal Tax Benefits

Posted by Tony Deutsch on Mon, Nov 14, 2016

The fourth quarter of the year is an opportune time for businesses to purchase equipment to reap tax benefits.

There’s a lot of take advantage of this year. For larger equipment, there’s both Section 179 and Bonus Depreciation. The federal government extended both business benefits in late 2015, making this tax year a prime chance to take advantage of them.

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Topics: Business tax planning

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