Business Tax
On December 6, the House and the Senate voted to go to committee, setting the stage for further tax reform negotiations between the two chambers. The House and Senate are now tasked with working out their differences on issues ranging from business taxes to the repeal of the Obamacare mandate. Below are some of the…
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It’s 1099 time! As a reminder, 1099 forms are due to the recipient and to the IRS by January 31, 2018, with no extensions available. There will be penalties per form if you do not comply with the filing deadline. Here are some insights on the requirements. It is required that you send a Form…
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On November 16, the U.S. House of Representatives passed its version of the Tax Cuts and Jobs Act. The U.S. Senate Committee on Finance has begun the process of marking up its version of the tax reform bill, with a full Senate vote expected after Thanksgiving. If you’re interested in following along with the progress…
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Last week, the Trump administration and select members of Congress released a “Unified Framework for Fixing Our Broken Tax Code,” outlining proposed tax reform targets. We wanted to highlight just a few of the proposed changes that could have particular relevance for our clients. For individuals: • The number of tax brackets would be reduced from…
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Tax reform has been a major topic of discussion in Washington, but it’s still unclear exactly what such legislation will include and whether it will be signed into law this year. The last major tax legislation that was signed into law — back in December of 2015 — still has a significant impact on tax…
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It’s common for a business to own not only typical business assets, such as equipment, inventory and furnishings, but also the building where the business operates — and possibly other real estate as well. However, there can be negative consequences when a business’s real estate is included in its general corporate assets. By holding real…
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Donating to charity is more than good business citizenship; it can also save tax. Here are three lesser-known federal income tax breaks for charitable donations by businesses: 1. Food donations Charitable write-offs for donated food (such as by restaurants and grocery stores) are normally limited to the lower of the taxpayer’s basis in the food…
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It’s common for closely held businesses to transfer money into and out of the company, often in the form of a loan. However, the IRS looks closely at such transactions: Are they truly loans, or actually compensation, distributions or contributions to equity? Loans to owners When an owner withdraws funds from the company, the transaction…
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It’s a smaller business world after all. With the ease and popularity of e-commerce, as well as the incredible efficiency of many supply chains, companies of all types are finding it easier than ever to widen their markets. Doing so has become so much more feasible that many businesses quickly find themselves crossing state lines.…
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Private companies with more than one owner should have a buy-sell agreement to spell out how ownership shares will change hands should an owner depart. For businesses structured as C corporations, the agreements also have significant tax implications that are important to understand. Buy-sell basics A buy-sell agreement sets up parameters for the transfer of…
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