2018 Year-End Tax Planning for Businesses

Brian SingletonBlog, Watch Your Wallet

There are a number of end of year tax planning strategies that businesses can use to reduce their tax burden for 2018. Here are a few of them: Deferring Income Businesses using the cash method of accounting can defer income into 2019 by delaying end-of-year invoices, so payment is not received until 2019. Businesses using the accrual method can defer income by postponing delivery of goods or services until January 2019. Purchase New Business Equipment Section 179 Expensing.┬áBusiness should take … Read More

Tax Breaks for Businesses Hiring New Employees

Brian SingletonBlog, Watch Your Wallet

If you’re thinking about hiring new employees this this year you won’t want to miss out on tax breaks available to businesses with employees. 1. Payroll Tax Deduction for Startups As part of the Research & Development Tax Credit, for tax years 2016 and beyond, startup businesses (C-corps and S-corps) with little to no revenue that qualify for the research and development tax credit can apply the credit against employer-paid Social Security taxes instead of income tax owed. Sole proprietorships, … Read More

5 Easy Ways to Lower your Self-Employment Tax Bill

Brian SingletonBlog

If you're like most small business owners, you're always looking for ways to lower your self-employment taxable income. Here are five ways to do just that. Deducting the Cost of a Home Computer If you purchased a computer and use it for work-related purposes, you can take advantage of the Section 179 expense election, which allows you to write off new equipment in the year it was purchased if it is used for business more than 50 percent of the ... Read More

Using a Car for Business: New Rules under TCJA

Brian SingletonBlog, Watch Your Wallet

Many of the tax provisions under tax reform were favorable to small business owners including those relating to using a car for business. Here’s what you need to know. 1. Section 179 Expense Deduction If you bought a new car in 2018 and use it more 50 percent for business use, you can take advantage of the Section 179 expense deduction when you file your 2018 tax return. Under Section 179 you can immediately deduct (rather than depreciating) the cost … Read More

Selling your Small Business

Brian SingletonBlog, Watch Your Wallet

Selling a small to medium-sized business is a complex venture, and many business owners are not aware of the tax consequences. If you’re thinking about selling your business the first step is to consult a competent tax professional. You will need to make sure your financials in order, obtain an accurate business valuation to determine how much your business is worth (and what the listing price might be) and develop a tax planning strategy to minimize capital gains and other … Read More

2017 Corporate Year-End Tax Info and Checklist

Brian SingletonBlog, Watch Your Wallet

Checklist for preparing your records to conform with IRS compliance requirements. How organized is your paperwork? For your corporation to be complete, you need a corporate record book, complete with corporate applications, corporate charter, bylaws, stock certificates and minutes of meetings. These items are all evidence that your business is a legitimate corporation. Do you loan your corporation money? You must be careful to document debt. Short term unwritten advances of less than $10,000 are acceptable if you treat them … Read More

ACA Requirements for Employers

Brian SingletonBlog, Watch Your Wallet

The health care law contains tax provisions that affect employers. The size and structure of a workforce–small or large–helps determine which parts of the law apply to which employers. Calculating the number of employees is especially important for employers that have close to 50 employees or whose workforce fluctuates during the year. Two parts of the Affordable Care Act apply only to applicable large employers. These are the employer shared responsibility provisions and the employer information reporting provisions for offers … Read More

2016 Year-End Tax Planning for Businesses

Brian SingletonBlog, Watch Your Wallet

There are a number of end of year tax planning strategies that businesses can use to reduce their tax burden for 2016. Here are a few of them: Deferring Income Businesses using the cash method of accounting can defer income into 2017 by delaying end-of-year invoices so payment is not received until 2017. Businesses using the accrual method can defer income by postponing delivery of goods or services until January 2017. Purchase New Business Equipment Section 179 Expensing. Business should … Read More

Choosing the Right Business Entity

Brian SingletonBlog, Watch Your Wallet

When you decide to start a business, one of the most important decisions you’ll need to make is choosing the right business entity. It’s a decision that impacts many things–from the amount of taxes you pay to how much paperwork you have to deal with and what type of personal liability you face. Forms of Business The most common forms of business are Sole Proprietorships, Partnerships, Limited Liability Companies (LLCs), and Corporations (C-Corporations). Federal tax law also recognizes another business … Read More