4Thought Blog

4thought graphic - blog 2020

Build Back Better on Hold; Next Up – Federal Tax Extenders

Posted by Concannon Miller on Tue, Feb 22, 2022

While all signs point to the fact that, given the current makeup of the House and Senate, the Build Back Better bill on the table last fall is essentially lifeless, some of the policies contained in the bill may be back in play in 2022.

A possible alternative path for some of the policies contained in the BBB bill is inclusion in smaller, more targeted pieces of legislation. (For prior coverage, see BDO’s alert “The Build Back Better Act in a Legislative Lull”). Whether or not some or all of the tax policies in the BBB bill are revived this year, Congress will nonetheless need to address what has become an almost annual ritual – passing tax extenders legislation.

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Topics: Business tax planning

How Businesses Can Maximize the QBI Deduction Amid the Pandemic

Posted by Concannon Miller on Tue, Feb 15, 2022

Since the qualified business income (QBI) deduction first become available in 2018, things have changed dramatically, mainly due to the various effects of the COVID-19 pandemic.

Possible tax rate increases and inflation have also entered into the mix. How do these developments affect planning to maximize QBI deductions for your business?

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Topics: Business tax planning

Tax Planning: Steps to Take Now for 2021, 2022 Business Taxes

Posted by Andrew Desiderio on Thu, Feb 3, 2022

The past two years have been very challenging for business owners and organizational leaders – we’ve had everything from the great resignation to inflation to pandemic-related compliance. It’s never been harder to spend the time working in and out of your business.

But despite the challenges, there are still some great tax benefits and opportunities for businesses and their owners. While 2021 has ended, there are even some steps you can take now to possibly reduce your tax burden from last year.

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Topics: Business tax planning

The New Guidance on the Changed Employee Retention Credit Rules

Posted by Concannon Miller on Thu, Jan 20, 2022

Sometimes, Uncle Sam seems to give with one hand and take with the other. Take the employee retention credit (ERC), for example.

Congress created this tax break in 2020 to help businesses continue to pay their workers following the onset of the COVID-19 pandemic. Then legislators extended the credit, with enhancements, through 2021. However, the new infrastructure act repeals the ERC for the final quarter of 2021.

Fortunately, the IRS has released new guidance to help employers make sense of the repeal. Specifically, Notice 2021-65 explains how the retroactive tax law change applies to employers that have based their deposits on the old law.

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Topics: Business tax planning, COVID-19

Federal Government Warns of Tax Return, Refund Delays for 2022

Posted by Concannon Miller on Tue, Jan 18, 2022

U.S. Treasury officials last week warned of expected significant delays in processing tax returns and refunds for the 2022 season.

The IRS is still dealing with backups in processing returns from the past two filing seasons and the continuing pandemic is causing staff shortages, officials said. Normally at the start of tax season the IRS has about 1 million items in its backlog but the current backlog totals more than 6 million items, officials said.

The IRS is urging taxpayers to file electronically and request direct deposit – instead of a mailed check – for quicker turnaround.

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Topics: Business tax planning, Individual tax planning

4 Big Charitable Tax Breaks for Businesses, Individuals to use in 2021

Posted by Concannon Miller on Tue, Nov 23, 2021

Are you feeling generous? Qualified charitable contributions can be rewarded with sizeable tax breaks during the second calendar year of the COVID-19 pandemic.

Recent legislation includes the following four temporary tax law changes that are designed to help individuals and businesses that donate to charities through the end of 2021.

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Topics: Business tax planning, Individual tax planning

New Law Cuts off Beneficial Employee Retention Credit

Posted by Concannon Miller on Tue, Nov 16, 2021

A new law has retroactively ended the Employee Retention Credit to apply only through September 30, 2021 (rather than through December 31, 2021) — unless the employer is a recovery startup business.

The Infrastructure Investment and Jobs Act, signed into law Nov. 15, only has a handful of tax provisions but this one is significant for some businesses.

As a result of the retroactive termination of the ERC, some employers may need to review their payroll tax compliance (including tax deposits) to make sure that it conforms with the changes.

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Topics: Business tax planning, COVID-19

How Fast Can You Write off a Business Vehicle? Learn the Rules

Posted by Concannon Miller on Thu, Nov 11, 2021

The federal income tax rules for depreciating vehicles used for business are complicated. And different rules apply to different categories of vehicles.

Special limitations apply to vehicles that are classified as passenger autos, including many pickups and SUVs. As a result of these limitations, depreciating an expensive vehicle may take longer than you'd expect.

Here's what you need to know about depreciation write-offs for vehicles used for business purposes.

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Topics: Business tax planning

5 Year-End Tax Planning Tips for Businesses for 2021

Posted by Concannon Miller on Tue, Oct 26, 2021

You still have time to significantly reduce this year's business federal income tax bill even with all the uncertainty about proposed tax law changes. Here are five possible moves to consider — but stay tuned for developments.

Congress is currently considering some major tax changes. If approved, it's unclear when they will all take effect.

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Topics: Business tax planning

Separating Real Estate Assets from Your Business: Learn the Tax Benefits

Posted by Concannon Miller on Tue, Oct 19, 2021

Many companies choose not to combine real estate and other assets into a single entity.

Perhaps the business fears liability for injuries suffered on the property. Or legal liabilities encountered by the company could affect property ownership.

But there are valid and potentially beneficial tax reasons for holding real estate in a separate entity as well.

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Topics: Business tax planning

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