If you withhold retainage (known as a portion of a contract's final payment withheld by a principal — client or owner — until the project is complete in all respects), from subcontractors, you may be able to defer some of your taxable income to future years. This opportunity stems from the way retainage payable is [...]
You map out the most direct route to your client’s office with your navigation system. You use your hands-free cell phone to make business calls on the way to your meeting. You are prepared with samples of your product in your trunk. In short, your car is your mobile office…It’s also a tax deduction. Here’s [...]
Generous tax credits resulting from energy-saving purchases are still available to many taxpayers. Home Upgrades and Appliances On the low end of the spectrum, homeowners can receive a tax credit equal to 10% of the cost to upgrade their windows, doors, and other energy efficient household items. On a grander scale, you can receive a [...]
S corporations have certain tax advantages that you might consider for your small business in 2013 – before it’s too late. An S corporation is a regular corporation that has opted to have all income or loss passed down to the personal tax returns of its shareholders rather than taxed at the corporate level. This [...]
Business-related purchases of new or used vehicles may be eligible for Section 179 expensing, and business-related purchases of new vehicles may be eligible for bonus depreciation. But Sec. 179 expensing limits are scheduled to go down in 2013, and bonus depreciation is scheduled to disappear. So you might benefit from purchasing business vehicles before year [...]
Start-up businesses should always consider their choice of entity when planning their new venture. Whether it is a sole-proprietorship, joint venture, LLC, C-Corp, S-Corp or partnership, there are many tax considerations flowing from the entity choice. Entity choice can impact method of accounting, capitalization vs. expense and income recognition, among other tax considerations. As you [...]
I recently wrote about the strict tax rules around charitable contributions. See Charitable Contributions and Tax Deductions. Below is a synopsis of the most frequently encountered charitable donation rules: Cash Contributions. No matter how small the amount, you need: A canceled check, credit card statement, or other banking record; or A receipt or other written [...]
Our business service department receives many questions regarding tips versus service charges. The IRS has put out a question and answer format for employers and employees regarding taxes imposed on tips under the Federal Insurance Contributions Act (FICA). This ruling provides guidance for employers and employees, including information on the difference between tips and service [...]
One word that can make taxpayers cringe is “audit.” Fortunately, chances are slim that you’ll experience an audit: In 2011, the IRS audited just over 1.5% of returns. However, certain triggers can boost the likelihood that your return is among those targeted. How do you get chosen for an IRS audit? There are several red [...]
Our very own Barbara Rosenbaum and Lori Shrout, had an excellent article appear in Accounting Today. The article discusses how Facebook early investors and Facebook employees might benefit from Internal Revenue Code Section 1202, which provides a partial exclusion for gain from the sale of certain small-business stock. Facebook a small business? Absurd, yet the [...]
