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COVID-19 Tax Relief for Businesses: 4 Options to Save Taxes

Posted by Concannon Miller on Tue, Apr 28, 2020

The $2.2 trillion Coronavirus Aid, Relief, and Economic Security (CARES) Act delivers good news to individuals and businesses, including valuable tax-relief measures.

Some of that tax relief is retroactive. These provisions can affect 2018 and 2019 returns that have already been filed. One retroactive provision can, in some cases, go all the way back to 2013. Some taxpayers that file amended returns may receive a tax refund from prior years.

Here's a summary of four retroactive CARES Act provisions that can potentially benefit you or your business entity after amended prior-year returns have been prepared and filed.

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Topics: Business tax planning, 2020 Coronavirus

Help Employees Affected by Coronavirus with Tax-Free Qualified Disaster Payments

Posted by Concannon Miller on Tue, Mar 24, 2020

Employers are scrambling to find ways to help their employees who are impacted by the novel coronavirus.

Help is available. Now that the COVID-19 has been declared a national emergency, Internal Revenue Code Section 139 can be used to allow employers to make tax-free payments or reimbursements to employees as “qualified disaster payments.”

Below are some frequently asked questions about how employers can use Section 139 immediately to help employees cope with COVID-19.

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Topics: Business tax planning, 2020 Coronavirus

New Employer Tax Credits, Employee Paid Leave Provisions Related to COVID-19

Posted by Concannon Miller on Tue, Mar 24, 2020

The novel Coronavirus is changing the business landscape at lightning speed.

While governments continue to work to blunt the negative impacts, there is already one new provision designed to help employers assist workers needing to take leave for either health or family care reasons.

The Families First Coronavirus Response Act, signed into law last week, allows small and midsized employers to use two new refundable payroll tax credits aimed at immediately reimbursing them, dollar for dollar, for the cost of providing Coronavirus-related leave to their employees.

The new law also mandates paid leave benefits for small business employees affected by the COVID-19 emergency. Learn some details on the new law below.

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Topics: Business tax planning, 2020 Coronavirus

Federal Tax Deadline Extended; Some State Rules Still Up in Air

Posted by Concannon Miller on Fri, Mar 20, 2020

The federal tax deadline has been extended from April 15 to July 15 due to the Coronavirus pandemic, officials announced Friday.

The White House had announced previously they were deferring tax payments for 90 days, but that Americans would still need to file by April 15. Now, the filing deadline will be extended into the summer, as well.

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Topics: Business tax planning, Individual tax planning, 2020 Coronavirus

Tax Credits for Small Businesses: 7 to Consider

Posted by Concannon Miller on Thu, Mar 12, 2020

Many people are familiar with tax credits for individual taxpayers, such as the credits for higher education expenses or the child tax credit.

But businesses and business owners also may be eligible for some valuable credits that can lower their tax bills.

Here are seven credits for small business owners to consider this tax year and beyond.

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Topics: Business tax planning

Confused about Business Entertainment Deductions? New Rules May Help

Posted by Concannon Miller on Tue, Mar 10, 2020

The Tax Cuts and Jobs Act permanently eliminated deductions for most business-related entertainment expenses paid or incurred after 2017. For example, you can no longer deduct 50% of the cost of taking clients out for a round of golf.

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Topics: Business tax planning, 2017 Federal Tax Reform

Own a Very Profitable Business? A Strategy to Maximize the QBI Deduction

Posted by Concannon Miller on Tue, Feb 25, 2020

Since the Tax Cuts and Jobs Act went into effect, owners of pass-through entities have been allowed to deduct up to 20% of their qualified business income. However, the benefits may be reduced or eliminated if an owner's taxable income exceeds certain thresholds.

If you exceed the thresholds, one potential strategy is to transfer portions of your business to multiple trusts for the benefit of your children or other heirs. But there's a possible wrench in the works — regulations prevent the use of multiple trusts as a tax avoidance device.

If you have a very profitable sole proprietorship, partnership, S corporation or LLC, read on to learn how you can still enjoy the valuable tax advantages of the qualified business income deduction.

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Topics: Business tax planning

Top Individual, Business Tax Insights for 2020

Posted by Tony Deutsch and Andrew Desiderio on Mon, Feb 10, 2020

We’re already one month through 2020, but there’s still plenty of time to make changes to affect your personal and business taxes for the year. Actually, there’s still even time to make some changes to save on your 2019 taxes.

Read on for some of our biggest tax insights for 2020, including retirement changes under the new SECURE Act and the continuation of tax savings for small business owners through the Tax Cuts and Jobs Act.

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Topics: Business tax planning, Individual tax planning

New Jersey Enacts New Tax Credit to Help Small Businesses with SALT Cap

Posted by Denise Hozza and Mark Puliti on Thu, Jan 30, 2020

New Jersey has enacted a so-called SALT – State and Local Tax – cap workaround to help pass-through businesses in the state.

The Pass-Through Business Alternative Income Tax Act allows a refundable gross income tax credit for taxpayers earning income from pass-through businesses.

It’s intended to help the state’s small businesses hurt by the $10,000 cap on state and local tax deductions that is part of the federal Tax Cuts and Jobs Act.

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Topics: Business tax planning

C Corporations: How to Cash Out and Save Taxes

Posted by Concannon Miller on Tue, Jan 14, 2020

It's unclear how long today's taxpayer-friendly rate environment will last. C corporation shareholders may want to hedge their bets by taking proactive measures to minimize the overall tax hit on corporate income.

Here's a possible strategy that may allow owners to cash out corporate wealth at a relative low tax cost, while providing several other long-term tax benefits.

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Topics: Business tax planning, 2017 Federal Tax Reform

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