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Business Tax & Financial Planning

Business Tax & Financial Planning

The Proper Care and Feeding of Your S Corporation

The Proper Care and Feeding of Your S Corporation

Diligence is Required to Avoid Inadvertent Termination and Loss of Tax BenefitsThe S corporation continues to be a popular entity choice, combining the liability protection of a corporation with many of the tax benefits of a partnership. But these benefits...

Improve Your Company’s Performance with Benchmarking

by Jodi Ristrom, CPA, PartnerTo maintain a competitive edge, it’s critical for a business to know where it stands financially. One approach is benchmarking, which shows how your company is performing and where you can improve. In this process, management...

CalSavers Retirement Savings Program Update

CalSavers Retirement Savings Program Update

California will begin mandating employer participation in the CalSavers program. Under this program, private employers that don’t already offer a retirement plan must enroll their employees in a CalSavers account.The program is being phased in over a three-year...

The R&D Credit: Are you Leaving Tax Dollars on the Table?

The R&D Credit: Are you Leaving Tax Dollars on the Table?

Federal and state research credits (often referred to as the “research and development,” “R&D” or “research and experimentation” credit) are among the most valuable tax incentives available today. But many businesses overlook these tax breaks because they...

Loans Between Businesses and their Owners: Is the IRS Watching?

Loans Between Businesses and their Owners: Is the IRS Watching?

It’s quite normal for closely held businesses to transfer money into and out of the company. But it’s critical that you make those transfers correctly. If you don’t, you might run up against the IRS — the service looks closely at how such transactions are...

Tax Implications of Equity-Based Compensation

Tax Implications of Equity-Based Compensation

Equity-based compensation is a powerful tool for attracting, retaining and motivating executives and other employees. By rewarding recipients for their contributions to your success, it aligns their interests with those of the company and provides them...

Partnerships: If You’re Audited, Will You Be Ready?

Partnerships: If You’re Audited, Will You Be Ready?

The Bipartisan Budget Act of 2015 established a new “centralized audit” regime for partnerships, including LLCs taxed as partnerships. Although the new audit rules apply to partnership tax returns for tax years beginning after 2017, the IRS didn’t finalize...

California Will Conform to Some TCJA Provisions

California Will Conform to Some TCJA Provisions

By Nicolas Waldenmayer, CPA, MBA, MBT | In December 2017, the Tax Cuts and Jobs Act (TCJA) was signed into law, representing the most significant tax code overhaul in over three decades. Until recently, California has not conformed to any part of the TCJA...

The GST Tax and Your Estate Plan: What You Need to Know

The GST Tax and Your Estate Plan: What You Need to Know

The Tax Cuts and Jobs Act doubled the generation-skipping transfer (GST) tax exemption to $10 million beginning last year. The exemption is adjusted annually for inflation. (For 2019, the exemption amount is $11.4 million.) However, even though most...

Why Opportunity Zones are Taxpayer Friendly

Why Opportunity Zones are Taxpayer Friendly

by Jonathan Smeragliuolo, CPA, Tax Manager | The recently introduced Opportunity Zones program is one of, if not THE, most taxpayer friendly additions to the U.S. tax system. With only a few years to take advantage of the 15% taxable gain elimination...

Exporters, Does An IC-DISC Still Make Sense?

Exporters, Does An IC-DISC Still Make Sense?

In recent years, the interest-charge domestic international sales corporation (IC-DISC) has been a popular tax-reduction tool for exporters. Without going into detail, one of the IC-DISC’s most powerful tax-saving tools is its ability to convert ordinary...

Estate Planning and Business Succession Planning

Estate Planning and Business Succession Planning

The Lines Blur When a Family Business Comes Into Play - For many business owners, estate planning and succession planning go hand in hand. If you’re the owner of a closely held business, you likely have a significant portion of your wealth tied up in the...

When Can You Deduct Business Meals?

When Can You Deduct Business Meals?

The Tax Cuts and Jobs Act (TCJA) eliminated most tax deductions for business-related entertainment, beginning in 2018. It also created confusion over the continued deductibility of business meals. Late last year, the IRS issued a notice clarifying that...

Qualified Opportunity Zones – A Powerful Tax Incentive For Investors

Qualified Opportunity Zones – A Powerful Tax Incentive For Investors

Investors willing to make long-term investments in distressed communities now have a powerful tax incentive for doing so: the Qualified Opportunity Zone (QOZ) program, created by the Tax Cuts and Jobs Act (TCJA). The program allows investors who recognize capital...

New Rules for Those Filing a Form 1065 Partnership Tax Return

by Brett Simpson, CPA, Senior Tax Manager | Rule changes affect the way the IRS audits all partnerships (and LLCs taxed as partnerships) There are new rules pertaining to the way the IRS audits all partnerships (and LLCs taxed as partnerships) beginning...

What It Means for Internet and Mail-Order Sales

What It Means for Internet and Mail-Order Sales

Supreme Court’s Wayfair Decision - In its much-anticipated decision in South Dakota v. Wayfair, the U.S. Supreme Court ruled, by a 5 to 4 margin, that a state may require out-of-state sellers to collect sales and use tax even if they lack a physical...

Tax Topics: 0% Capital Gains, Research CR, Estate Plan Clause

Tax Topics: 0% Capital Gains, Research CR, Estate Plan Clause

Make the Most of the 0% Capital Gains Rate - If you’re holding highly appreciated investments, there may be techniques you can use to avoid federal income taxes on the gain. High-income earners pay tax on long-term capital gains at rates of 15% or 20%,...

What’s The Right Structure for Your Business

What’s The Right Structure for Your Business

C Corporation vs. Pass-Through - The recent corporate tax cut has many pass-through business owners rethinking their choice of entity. The Tax Cuts and Jobs Act (TCJA) slashed the federal corporate income tax rate to a flat rate of 21% from a top rate of...

Are LLC Members Subject to Self‐Employment Tax?

Are LLC Members Subject to Self‐Employment Tax?

Ambiguity in the tax code and regulations has led many limited liability company (LLC) members to take an aggressive position regarding self‐employment (SE) tax. They claim that their distributive shares of LLC income — after deducting compensation for...

Maximizing the 199A Deduction for Qualified Business Income

Maximizing the 199A Deduction for Qualified Business Income

by Brett Simpson, CPA, Senior Tax Manager | The Tax Cuts and Jobs Act (TCJA) introduced sweeping changes to our tax system. The new tax bill has cut tax rates, slashed some deductions, and created new deductions, all in the name of tax simplification....

How Will it Affect Your Tax Bill?

How Will it Affect Your Tax Bill?

The Tax Cuts and Jobs Act At the end of 2017, the most sweeping tax reform legislation in decades was signed into law. Let’s take a look at the highlights of the Tax Cuts and Jobs Act (TCJA) that affect individuals and businesses. Most of the changes go...

Tax Planning for Investors: Income vs. Growth

Tax Planning for Investors: Income vs. Growth

Whether you invest for income (dividends and interest), growth (price appreciation) or total return (a combination of income and growth), it’s important to assess the impact of taxes on your portfolio. Here are some of the tax issues you should...

Are Bad Business Debts Deductible?

Are Bad Business Debts Deductible?

If you hold a business-related debt that’s become worthless or uncollectible, a “bad debt” deduction may allow you to cut your losses. But don’t assume a debt is deductible just because your odds of collecting are slim. There are a few hoops to jump...

Are Your Business Interest Expenses Deductible?

Are Your Business Interest Expenses Deductible?

Before Congress passed the Tax Cuts and Jobs Act (TCJA), most business-related interest expense was deductible, although corporations couldn’t deduct interest paid to or guaranteed by a related party under certain circumstances. But for tax years beginning...

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