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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

Rental Real Estate Owners Can Qualify for QBI Deduction

Posted by Concannon Miller on Thu, Jan 2, 2020

There’s good news for rental real estate owners regarding the fruitful Qualified Business Income Deduction.

The Tax Cuts and Jobs Act introduced a new deduction for individuals, estates and trusts that own interests in so-called "pass-through" business entities for 2018 through 2025. The deduction can equal up to 20% of an owner's share of qualified business income from an interest in one or more pass-through business entities. The QBI deduction is subject to limitations for higher-income owners, but it can be an important tax-saving break for many small business owners.

The eligibility rules for this deduction have been a source of confusion. Only income from a "business" counts as QBI — but the term "business" isn't defined in the statutory language that created the QBI deduction. So, there was a question about whether a rental real estate venture could be classified as a business for QBI deduction eligibility purposes.

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Topics: Business tax planning, 2017 Federal Tax Reform

Congress Extends Some Key Individual, Business Tax Benefits

Posted by Andrew Desiderio on Mon, Dec 23, 2019

Just in time to avoid a government shutdown, the federal government last week approved new spending bills that extend and change some important tax benefits for both businesses and individuals.

Here’s a look at some of the key changes from the Further Consolidated Appropriations Act, 2020. These will go into effect right around the two year anniversary of the passage of the sweeping Tax Cuts and Jobs Act in December 2017.

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Topics: Business tax planning, Individual tax planning

IRS: Delinquent Taxpayers Could Expect Unannounced Visit

Posted by Tony Deutsch on Thu, Dec 5, 2019

The IRS has announced its agents will be conducting unannounced in-person meetings with delinquent business and individual taxpayers.

The IRS routinely conducts these face-to-face visits, it said in an announcement last month. The primary purpose of these visits is to make contact with taxpayers with a previously known tax issue that wasn’t resolved through mail contact, the agency said.

These meetings are scheduled in areas with a limited number of available revenue officers due to declining IRS resources. The first face-to-face contact from a revenue officer is almost always unannounced.

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Topics: Business tax planning, Individual tax planning

Top Tax Reform Business Opportunity: Switching to a C Corp

Posted by Jane Spradlin on Tue, Nov 12, 2019

Did you feel like your taxes were minimized last year? If not, it’s possible you may have missed out on some opportunities.

Federal tax reform through the Tax Cuts and Jobs Act provided some of the best tax benefits to businesses in more than 50 years. The corporate tax rate was slashed from the graduated maximum of 35% to a flat 21%.

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Topics: Business tax planning, 2017 Federal Tax Reform

2019 Year-End Tax Savings Strategies for Businesses

Posted by Concannon Miller on Thu, Oct 31, 2019

It's hard to believe 2019 is almost over! It's been a busy year in many sectors, often forcing small business owners to put tax planning on the back burner while they've tended to daily business operations.

But procrastinate no longer. Consider the following moves to lower your 2019 business tax bill before ringing in the New Year.

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Topics: Business tax planning

Top Tax Reform Business Opportunity: Accelerated Depreciation

Posted by Jane Spradlin on Tue, Oct 22, 2019

Did you feel like your taxes were minimized last year? If not, it’s possible you may have missed out on some opportunities.

Federal tax reform through the Tax Cuts and Jobs Act provided some of the best tax benefits to businesses in more than 50 years. The corporate tax rate was slashed from the graduated maximum of 35% to a flat 21%.

Read More

Topics: Business tax planning, 2017 Federal Tax Reform

IRS Sweetens Bonus Depreciation Savings for Businesses

Posted by Concannon Miller on Thu, Oct 10, 2019

First-year bonus depreciation has been around for a while now. However, the Tax Cuts and Jobs Act set forth more-generous, but temporary, rules for 2018 through 2026.

Recent IRS guidance gives you additional flexibility to fine-tune the bonus depreciation break to suit your specific business and personal tax circumstances. Here's what you need to know.

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Topics: Business tax planning, 2017 Federal Tax Reform

Top Tax Reform Opportunity: Expanded Use of Cash Method Accounting

Posted by Jane Spradlin on Tue, Oct 8, 2019

Did you feel like your taxes were minimized last year? If not, it’s possible you may have missed out on some opportunities.

Federal tax reform through the Tax Cuts and Jobs Act provided some of the best tax benefits to businesses in more than 50 years. The corporate tax rate was slashed from the graduated maximum of 35% to a flat 21%.

Read More

Topics: Business tax planning, 2017 Federal Tax Reform

Top Tax Reform Business Opportunity: Tax Entity Structure

Posted by Jane Spradlin on Thu, Sep 19, 2019

Did you feel like your taxes were minimized last year? If not, it’s possible you may have missed out on some opportunities.

Federal tax reform through the Tax Cuts and Jobs Act provided some of the best tax benefits to businesses in more than 50 years. The corporate tax rate was slashed from the graduated maximum of 35% to a flat 21%.

Read More

Topics: Business tax planning, 2017 Federal Tax Reform

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