• If you run a business from home, you could qualify for home office deductions

    During the COVID-19 pandemic, many people are working from home. If you’re self-employed and run your business from your home or perform certain functions there, you might be able to claim deductions for home office expenses against your business income. There are two methods for claiming this tax break: the actual expenses method and the simplified method. Who qualifies? In general, you qualify for home [...]

    Published On: March 3, 2021Categories: Featured, Small Business Tax
  • If you run a business from home, you could qualify for home office deductions

    During the COVID-19 pandemic, many people are working from home. If you’re self-employed and run your business from your home or perform certain functions there, you might be able to claim deductions for home office expenses against your business income. There are two methods for claiming this tax break: the actual expenses method and the simplified method. Who qualifies? In general, you qualify for home [...]

    Published On: March 1, 2021Categories: Featured, Small Business Tax
  • What are the tax implications of buying or selling a business?

    Merger and acquisition activity in many industries slowed during 2020 due to COVID-19. But analysts expect it to improve in 2021 as the country comes out of the pandemic. If you are considering buying or selling another business, it’s important to understand the tax implications. Two ways to arrange a deal Under current tax law, a transaction can basically be structured in two ways: 1. [...]

    Published On: February 26, 2021Categories: Featured, Small Business Tax
  • Many tax amounts affecting businesses have increased for 2021

    A number of tax-related limits that affect businesses are annually indexed for inflation, and many have increased for 2021. Some stayed the same due to low inflation. And the deduction for business meals has doubled for this year after a new law was enacted at the end of 2020. Here’s a rundown of those that may be important to you and your business. Social Security [...]

    Published On: February 19, 2021Categories: Featured, Small Business Tax
  • What are the tax implications of buying or selling a business?

    Merger and acquisition activity in many industries slowed during 2020 due to COVID-19. But analysts expect it to improve in 2021 as the country comes out of the pandemic. If you are considering buying or selling another business, it’s important to understand the tax implications. Two ways to arrange a deal Under current tax law, a transaction can basically be structured in two ways: 1. [...]

    Published On: February 17, 2021Categories: Featured, Small Business Tax
  • The cents-per-mile rate for business miles decreases again for 2021

    This year, the optional standard mileage rate used to calculate the deductible costs of operating an automobile for business decreased by one-and-one-half cents, to 56 cents per mile. As a result, you might claim a lower deduction for vehicle-related expenses for 2021 than you could for 2020 or 2019. This is the second year in a row that the cents-per-mile rate has decreased. Deducting actual [...]

    Published On: February 11, 2021Categories: Featured, Small Business Tax
  • The right entity choice: Should you convert from a C to an S corporation?

    The best choice of entity can affect your business in several ways, including the amount of your tax bill. In some cases, businesses decide to switch from one entity type to another. Although S corporations can provide substantial tax benefits over C corporations in some circumstances, there are potentially costly tax issues that you should assess before making the decision to convert from a C [...]

    Published On: February 4, 2021Categories: Featured, Small Business Tax
  • 2021 Q1 tax calendar: Key deadlines for businesses and other employers

    Here are some of the key tax-related deadlines affecting businesses and other employers during the first quarter of 2021. Keep in mind that this list isn’t all-inclusive, so there may be additional deadlines that apply to you. Contact us to ensure you’re meeting all applicable deadlines and to learn more about the filing requirements. January 15 Pay the final installment of 2020 estimated tax. Farmers [...]

    Published On: February 3, 2021Categories: Featured, Small Business Tax
  • New law doubles business meal deductions and makes favorable PPP loan changes

    The COVID-19 relief bill, signed into law on December 27, 2020, provides a further response from the federal government to the pandemic. It also contains numerous tax breaks for businesses. Here are some highlights of the Consolidated Appropriations Act of 2021 (CAA), which also includes other laws within it. Business meal deduction increased The new law includes a provision that removes the 50% limit on deducting [...]

    Published On: February 2, 2021Categories: Featured, Small Business Tax
  • Can your business benefit from the enhanced Employee Retention Tax Credit?

    COVID-19 has shut down many businesses, causing widespread furloughs and layoffs. Fortunately, employers that keep workers on their payrolls are eligible for a refundable Employee Retention Tax Credit (ERTC), which was extended and enhanced in the latest law. Background on the credit The CARES Act, enacted in March of 2020, created the ERTC. The credit: Equaled 50% of qualified employee wages paid by an eligible [...]

    Published On: February 1, 2021Categories: Featured, Small Business Tax
  • The importance of S corporation basis and distribution elections

    S corporations can provide tax advantages over C corporations in the right circumstances. This is true if you expect that the business will incur losses in its early years because shareholders in a C corporation generally get no tax benefit from such losses. Conversely, as an S corporation shareholder, you can deduct your percentage share of these losses on your personal tax return to the [...]

    Published On: February 1, 2021Categories: Featured, Small Business Tax
  • The 2021 “Social Security wage base” is increasing

    If your small business is planning for payroll next year, be aware that the “Social Security wage base” is increasing. The Social Security Administration recently announced that the maximum earnings subject to Social Security tax will increase from $137,700 in 2020 to $142,800 in 2021. For 2021, the FICA tax rate for both employers and employees is 7.65% (6.2% for Social Security and 1.45% for [...]

    Published On: November 4, 2020Categories: Featured, Small Business Tax
  • Understanding the passive activity loss rules

    Are you wondering if the passive activity loss rules affect business ventures you’re engaged in — or might engage in? If the ventures are passive activities, the passive activity loss rules prevent you from deducting expenses that are generated by them in excess of their income. You can’t deduct the excess expenses (losses) against earned income or against other nonpassive income. Nonpassive income for this [...]

    Published On: November 3, 2020Categories: Featured, Small Business Tax
  • The easiest way to survive an IRS audit is to get ready in advance

    IRS audit rates are historically low, according to the latest data, but that’s little consolation if your return is among those selected to be examined. But with proper preparation and planning, you should fare well. In fiscal year 2019, the IRS audited approximately 0.4% of individuals. Businesses, large corporations and high-income individuals are more likely to be audited but, overall, all types of audits are [...]

    Published On: October 15, 2020Categories: Featured, Small Business Tax