Home Sale: Failure to Plan May Raise Your Tax Bill As the saying goes, there’s nothing certain in life except for death and taxes. But when it comes to selling ..read more

How to Keep Control Over Inventory Many businesses need to have some inventory available. But having too much inventory is expensive, not just to purchase but also to store, safeguard ..read more

Independent Contractors: Classify Carefully Many businesses use independent contractors to help keep their costs down and provide flexibility for short-term needs. But the question of whether a worker is an employee or an independent contractor is complex. Be careful that your independent contractors are properly classified for federal tax and employment tax purposes, because if the IRS reclassifies them as employees, it can be an expensive mistake. Differing Obligations If a worker is an employee, your company must withhold federal income tax and the employee’s share of Social Security and Me ..read more

What Expenses Can’t Be Written Off by Your Business? If you check the Internal Revenue Code, you may be surprised to find that most business deductions aren’t specifically listed there. For example, the tax law doesn’t explicitly state that you can deduct office supplies and certain other expenses. Some expenses are detailed in the tax code, but the general rule is contained in the first sentence of Section 162, which states you can write off “all the ordinary and necessary expenses paid or incurred during the taxable year in carrying on any trade or business.” Basic Definitions In general, an ..read more

3 Ways Your Business Can Uncover Cost Cuts Every business wants to cut costs, but it isn’t easy. We’re talking about clear and substantial ways to lower expenses, thereby strengthening cash flow and giving you a better shot at strong profitability. Obvious places to slash costs (such as wages, benefits and overhead) often aren’t viable options because the very stability of your operation may depend on them. But there might be other ways to lower expenses if you dig deeply enough. Here are three possibilities. 1. Study Your Suppliers Many companies find that just a few suppliers account for the ..read more

Tax Records: What Can You Toss and What Should You Keep? Generally, the IRS has three years to audit a tax return, from the later of the due date of the return or the date you file. You can also file an amended return within this time frame if you overlooked something. Here’s what you need to know about keeping financial records involved in your tax returns. Federal tax records Despite the three-year guideline, many tax advisors recommend retaining copies of your finished tax returns indefinitely to prove that you filed. Even if you don’t keep returns indefinitely, at least keep them for ..read more

Retirement Saving Options for Your Small Business If you’re looking for a retirement plan for yourself and your employees but worried about the financial commitment and administrative burdens involved, there are some options to consider. One possibility is a Simplified Employee Pension (SEP). This plan, which comes with relative ease of administration and the discretion to make or not make annual contributions, is especially attractive for small businesses. There’s still time to see tax savings on your 2023 tax return by establishing and contributing to a 2023 SEP, right up to the extended due ..read more

The House’s recent passage of H.R. 7024, known as the Tax Relief for American Families and Workers Act of 2024, marks a significant step towards potential tax reforms. However, its journey isn’t over yet, as it now heads to the Senate for further deliberation. Here are some key highlights from the bill’s current form, which may undergo changes in the Senate: Bonus Depreciation Adjustment: Retroactively adjusted back to 100% for the 2023 tax year, providing potential benefits for businesses investing in qualified property. Restoration of R&D Expensing: R&D expenses no longer need to be ..read more

Traveling for Business in 2024? What’s Deductible? If you and your employees will be traveling for business this year, there are many factors to keep in mind. Under the tax law, certain requirements for out-of-town business travel within the United States must be met before you can claim a deduction. The rules apply if the business conducted reasonably requires an overnight stay. Note: Under the Tax Cuts and Jobs Act, employees can’t deduct their unreimbursed travel expenses through 2025 on their own tax returns. That’s because unreimbursed employee business expenses are “miscellaneo ..read more

On September 25, 2023, the Florida Department of Revenue issued a Tax Information Tip announcing a reduction in the state sales tax rate imposed on rentals, leases, or licenses to use real property from 5.5% to 4.5% effective December 1, 2023. Some examples of real property rentals subject to tax under section 212.031, Florida Statutes, include rentals of commercial office or retail space, warehouses, and self-storage units or mini warehouses. The sales tax rate imposed is based on the time the tenant occupies or is entitled to occupy the real property, regardless of when the rent is paid. Ren ..read more