4Thought Blog

4thought graphic - blog 2020

Could the Work Opportunity Tax Credit Help Your Construction Company?

Posted by Concannon Miller on Thu, Jun 30, 2022

The construction industry has been facing a labor shortage for years. Although there are various ways to tackle the challenge, one approach to keep in mind is expanding your hiring pool to, in part, avail yourself of a potentially valuable tax break: the Work Opportunity Tax Credit (WOTC).

The WOTC is available to employers as an incentive for hiring individuals who receive government assistance and reintroducing them into the workforce.

Depending on the targeted group to which a worker belongs, as well as the wages earned, the maximum credit can range from $2,400 to $9,600 per new hire. So, it's well worth determining whether the tax credit could help your construction company.

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Topics: Construction & Real Estate Development

IRS Raises Standard Mileage Rate for Second Half of 2022 Due to Rising Gas Costs

Posted by Concannon Miller on Tue, Jun 28, 2022

The IRS recently announced it will be increasing the standard mileage rate for qualified business drivers for the second half of 2022.

The adjustment reflects rising costs at the gas pumps this year. It's accompanied by a hike in the standard mileage rate for medical expenses for all taxpayers and moving expenses for active-duty military personnel.

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Topics: Business tax planning, Individual tax planning

Business Valuation: Valuing Employee Stock Ownership Plans

Posted by Concannon Miller on Fri, Jun 24, 2022

Employee stock ownership plans (ESOPs) provide tax-saving opportunities for business owners who want to cash out and transfer ownership to employees without immediately giving up control of the business.

However, valuing stock held by an ESOP is an ongoing challenge for the fiduciaries who administer them, especially when the sponsoring company is privately held.

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Topics: Business Valuation

Attract, Retain Employees with New Tax-Deductible Benefits

Posted by Concannon Miller on Tue, Jun 21, 2022

The labor market is tighter today than it has been in decades, and many employers are going above and beyond the ordinary to attract and retain top talent.

One idea for your organization is to sweeten the pot of fringe benefits. A cafeteria plan, for example, allows employers to offer more benefits to employees, generally at a reasonable cost.

This type of plan also provides tax-favored perks to employees under Section 125 of the tax code. (This is why cafeteria plans are sometimes called Sec. 125 plans.) Plus, payments are tax-deductible by employers.

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Topics: Business consulting

The Real Estate Investor’s Dilemma: Industrial or Multifamily?

Posted by Concannon Miller on Thu, Jun 16, 2022

The global events of the past two years have had a profound impact on real estate, from the disruption to office real estate to the rise of secondary markets. In terms of sectors that have seen positive growth, industrial and multifamily have emerged as clear frontrunners.

Multifamily owners and investors have benefited from the shift to remote and hybrid work environments as employees sought homes with more space and amenities, and industrial owners and investors benefited from an increase in e-commerce demand.

Now these sectors are in a proverbial horse race as they compete for labor, materials and investment. Investors wondering which will come out ahead should be aware of current trends in both sectors.

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Topics: Construction & Real Estate Development

Manufacturers: Get Tax Credits for Hiring Target Group Workers

Posted by Concannon Miller on Tue, Jun 14, 2022

If your manufacturing company is like many others in the industry, you're having difficulty finding top-notch new hires to expand your workforce as well as to replace employees who are retiring or quitting. At the same time, you'd like to reduce your tax liability for 2022.

Practical solution: Kill two birds with one stone by hiring workers from certain "target" groups. This move can help close the skilled labor gap, and you may qualify for a tax credit — the Work Opportunity Tax Credit (WOTC) — at the same time. What's more, if your company employs certain teenagers during the next few months, it may be in line for a special "summertime" version of the WOTC.

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Topics: Manufacturing

The Case for Diverse Revenue Streams for Restaurants

Posted by Concannon Miller on Thu, Jun 9, 2022

A patron speaks with the restaurant host, either to confirm a reservation or ask if there’s a table available. Ideally, the host calls upon a server who then leads the patron to a table and takes their order.

It’s a system that worked since the dawn of the U.S. restaurant industry — accounting for 90% of most restaurants’ revenue pre-pandemic — until it didn’t. The single revenue stream model was derailed by COVID-19 related closures, capacity restrictions and transmission concerns.

Restaurants were forced to get creative and many attribute their survival to diversifying their revenue streams. They launched ghost kitchens, scheduled deliveries and assembled meal kits. Though sit-down dining is once again a possibility, many restaurants continue to engage customers, compensate for staff shortages and increase agility by maintaining multiple revenue streams.

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Topics: Restaurants

6 Common Tax Deductions for Nonprofits with UBIT

Posted by Concannon Miller on Tue, Jun 7, 2022

Revenue generated by 501(c)(3) organizations is generally exempt from federal income tax. But in some cases, your nonprofit may incur unrelated business income tax (UBIT) on revenue.

 The good news is your annual tax return may offer some relief in the form of deductions. The list isn't as long as the "ordinary and necessary business expenses" for-profit entities can deduct, but here are six common nonprofit deductions to know about:

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Topics: Nonprofit Organizations

Buying a Business? Learn the Tax Implications of Noncompete Agreements

Posted by Concannon Miller on Thu, Jun 2, 2022

Noncompete agreements are commonly included in business purchase transactions to prevent the seller from competing against the buyer for the term of the noncompete agreement. These arrangements are also sometimes called covenants-not-to-compete or noncompete covenants.

Important: Laws regarding noncompete agreements vary from state to state. For example, courts in California generally reject noncompete agreements because state law makes them unenforceable except in limited circumstances. Because noncompete covenants are generally not allowed in the state, California employers often use confidentiality agreements and other types of contracts to protect trade secrets and other information. Still, in many jurisdictions, noncompete covenants can be enforceable if certain conditions are met.

Noncompete agreements have important tax implications. Here are the details.

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Topics: Business tax planning, Business consulting

Work or Pleasure: The Tax Rules for Hybrid Travel in 2022

Posted by Concannon Miller on Tue, May 31, 2022

With business travel picking up again and summer fast approaching, many business owners may be mulling trips that combine work with vacation or other personal activities.

A quick refresher on the IRS rules related to deducting business vs. personal travel costs can help you reduce your tax bill next year.

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Topics: Business tax planning, Individual tax planning

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