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It’s not uncommon for businesses to sometimes generate tax losses. But the losses that can be deducted are limited by tax law in some situations. The Tax Cuts and Jobs Act (TCJA) further restricts the amount of losses that sole proprietors, partners, S corporation shareholders and, typically, limited liability company (LLC) members can currently deduct — beginning in 2018. This could negatively impact owners of [...]

With the filing date for 2017 in the rearview mirror for most businesses and individuals, the last thing they probably want to think about is income taxes. Unfortunately, though, criminals who commit tax-related identity theft don’t work seasonally — they’re constantly devising and unleashing new schemes. And even though the IRS has taken successful steps to reduce tax-related identity theft in 2017, it cautions taxpayers [...]

When business people speak of innovation, the focus is usually on a pioneering product or state-of-the-art service that will “revolutionize the industry.” But innovation can apply to any aspect of your company — including customer service.Many business owners perceive customer service as a fairly cut-and-dried affair. Customers call, you answer their questions or solve their problems ― and life goes on. Yet there are ways [...]

The relatively new federal procurement standards significantly alter the way not-for-profits receiving federal funding handle purchasing. And while your organization may have changed its written policies to comply with the revised standards, it may be easier to follow the rules on paper than in practice.Summing up the standardsThe standards, “Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards,” impose strict requirements on nonprofits [...]

In many parts of the country, summer is peak season for selling a home. If you’re planning to put your home on the market soon, you’re probably thinking about things like how quickly it will sell and how much you’ll get for it. But don’t neglect to consider the tax consequences. Home sale gain exclusionThe U.S. House of Representatives’ original version of the Tax Cuts [...]

At this time of year, a summer vacation is on many people’s minds. If you travel for business, combining a business trip with a vacation to offset some of the cost with a tax deduction can sound appealing. But tread carefully, or you might not be eligible for the deduction you’re expecting.General rules Business travel expenses are potentially deductible if the travel is within the [...]

One common configuration of employee benefits today is a cafeteria plan with options for pretax contributions that include a health Flexible Spending Account (FSA) and a dependent care FSA, also commonly referred to as a Dependent Care Assistance Program (DCAP).The health FSA pays for or reimburses out-of-pocket medical expenses for employees and their families, while the DCAP can be used for child or elder daycare [...]

Many not-for-profits supplement their usual income-producing activities with sponsorships or advertising programs. Although you’re allowed to receive such payments, they’re subject to unrelated business income tax (UBIT) unless the activities are substantially related to your organization’s tax-exempt purpose or qualify for another exemption. So it’s important to understand the possible tax implications of income from sponsorships and advertising.What is sponsorship?Qualified sponsorship payments are made by [...]

  If you received a large refund after filing your 2017 income tax return, you’re probably enjoying the influx of cash. But a large refund isn’t all positive. It also means you were essentially giving the government an interest-free loan. That’s why a large refund for the previous tax year would usually indicate that you should consider reducing the amounts you’re having withheld (and/or what [...]

IRS examiners use Audit Techniques Guides (ATGs) to prepare for audits — and so can small business owners. Many ATGs target specific industries, such as construction. Others address issues that frequently arise in audits, such as executive compensation and fringe benefits. These publications can provide valuable insights into issues that might surface if your business is audited. What do ATGs cover? The IRS compiles information [...]

“That’s just the cost of doing business.” You’ve probably heard this expression many times. It’s true that, to invoke another cliché, you’ve got to spend money to make money. But that doesn’t mean you have to take rising operational costs sitting down.Cost control is a formal management technique through which you evaluate your company’s operations and isolate activities costing you too much money. This isn’t [...]

The summer months are almost here and, with them, the prospect of many employers offering unpaid internships to high school and college students. If your organization is considering such a move, tread carefully. Under the Fair Labor Standards Act (FLSA), if an intern is determined to actually be an employee, the employer must pay him or her at least minimum wage, plus overtime to the [...]

Does your nonprofit add to its income with sponsorships or advertising programs? Any payments received may be subject to unrelated business income tax unless the activities are substantially related to your tax-exempt purpose or qualify for another exemption. Qualified sponsorship payments are made with no arrangement to receive, or expectation of receiving, any substantial benefit in return, and aren’t taxed. But payments for advertising a [...]

IRS examiners use Audit Techniques Guides (ATGs) to prepare for audits — and so can small business owners. Many ATGs target specific industries, such as construction. Others address issues that frequently arise in audits, such as executive compensation and fringe benefits. These publications can provide valuable insights into issues that might surface if your business is audited. What do ATGs cover? The IRS compiles information [...]