If your small business is unincorporated, you may be fed up with paying the federal self-employment tax. This tax is how the federal government collects Social Security and Medicare taxes from self-employed individuals. However, you may be able to lower your exposure to these taxes if you structure your business as a subchapter S corporation for federal tax purposes. Here are the details on how this tax-saving strategy can work.
Tax reform through the federal Tax Cuts and Jobs Act created a ton of new tax rules for business owners. So many in fact the IRS in January just released some final regulations on key parts of the act, more than a year after it was enacted.
While there are a lot of tax changes to learn, there is some good news for business owners: Some business tax provisions remained the same or largely so, including business travel deductions.
Tax season 2018 has come and gone. Being the first following the enactment of the sweeping Tax Cuts and Jobs Act, it was one for the accounting history books.
Here’s a few things we learned:
- This act may be the exact opposite of tax simplification.
- Sure, the new 1040 is postcard sized … if you don’t count the six new schedules.
- And you can never drink enough coffee.
While complicated, the Tax Cuts and Jobs Act provided a lot of new tax benefits to businesses, especially those that conducted tax projections and planning.
Most businesses will owe less tax for the 2018 tax year than they would have under prior law, thanks to changes brought by the Tax Cuts and Jobs Act. But have you done everything possible to lower your business tax bill for last year?
Even though 2018 is in your review mirror, there are some possibilities for business owners to consider if your return for the last tax year hasn't been prepared yet.
More than a year after sweeping federal and state tax reform were enacted, businesses of all sizes are still wrapping their arms around the changes.
Additional guidance and regulations have been issued nearly every month — indeed, change is the new normal. Strategic tax planning now is key to lowering businesses’ total tax liability.
Read on for eight top planning opportunities and considerations businesses should review as part of their 2019 strategy.
The federal, state and economic environment is in a state of constant change.
The end of 2017 was the Tax Cuts Jobs Act – the biggest federal tax change in 30 years. Last year’s Wayfair v. South Dakota sales tax case now requires out-of-state sellers of goods and services to collect sales tax if they have no physical presence. We also saw the North American Free Trade Agreement renegotiated and new tariffs imposed on imported products.
While we always advise tax and business planning be done annually, these changes make it more crucial than ever. Here are 10 business and tax planning tips to boost your business.
When President Trump signed into law the Tax Cuts and Jobs Act in December 2017, much was made of the dramatic cut in corporate tax rates. But the TCJA also includes a generous deduction for smaller businesses that operate as pass-through entities, with income that is “passed through” to owners and taxed as individual income.
The IRS issued proposed regulations for the qualified business income (QBI), or Section 199A, deduction in August 2018. Now, it has released final regulations and additional guidance, just before the first tax season in which taxpayers can claim the deduction. Among other things, the guidance provides clarity on who qualifies for the QBI deduction and how to calculate the deduction amount.
The new rules include important clarifications for rental real estate owners, service businesses and the owners of multiple businesses. Read on for the important clarifications.
If you do business in more than one state, there’s a good chance you may owe taxes in another state. Instead of being issued a jeopardy assessment, it’s best to work with an experienced CPA and be proactive.
The passage of the Tax Cuts and Jobs Act (TCJA) in late 2017 brought significant changes to the tax landscape. As the first tax season under the law looms on the horizon, new year-end tax planning strategies are emerging. Meanwhile, some of the old tried-and-true strategies have changed and others remain viable.
The R&D or Research and Development Tax Credit is available to far more industries than you’d think, including manufacturing, construction and software development among many others. You don’t have to develop a new product to qualify; even improving processes can be a qualifying activity. The R&D Tax Credit is one of the most lucrative available as it’s a dollar-for-dollar reduction in tax liability.