1. What is the Corporate Activity Tax? a. A corporate activity tax is imposed on each person (Defined in Question #4) with taxable commercial activity (Defined in Question #2) doing business in this state. b. The corporate activity tax imposed for each calendar year shall equal $250 plus the product of the taxpayer’s taxable commercial…
Deciding whether to switch to an S Corporation isn’t a straightforward decision. There are three main upsides to making the switch, and four main downsides to making the switch. First, you can reduce your taxes by eliminating self employment tax. When taxed as a proprietor or partnership, the IRS requires all of your wages to…
Many S-Corp owners don’t realize it but as small-business owners they have more options to save on healthcare costs than any other group of Americans. For example, in order to get the HSA deduction in 2018, you needed to have a high deductible health insurance plan in place by December 15, 2017. You should at…
The 2018 tax year will mark the first year subject to the changes in effect from the Tax Cuts and Jobs Act (TCJA). We have compiled a list of potential planning strategies that may benefit your business. We have placed a special emphasis on strategies connected to changes from the TCJA. We encourage you to…
The 2018 tax year will mark the first year subject to the changes in effect from the Tax Cuts and Jobs Act (TCJA). We have compiled a list of potential planning strategies that may benefit you or your family. We have placed a special emphasis on strategies connected to changes from the TCJA. We encourage…
This is the seventh installment of our monthly tax blog on the Tax Cuts and Jobs Act. In our third installment we provided an overview of the deduction. The fifth installment provided more detail for deductions on rental property income. If you are a business owner, you have likely heard about QBI and wondered, “Will…
This summer, parents are increasingly looking forward to the day their kids will be out of the house, but dreading the cost of their new residence: college. As you consider college saving plan options, consider the two most common tax favored savings tools available: the Coverdell Education Savings Accounts and 529 Plan accounts. The Coverdell…
Does your business help provide support for working families through a paid family and medical leave policy? If it does or you are considering adding such a policy, you should know that Congress has recently passed new tax incentives for employers who provide these benefits. The Tax Cuts and Jobs Act of 2017 created a…
Faced with differing standards for investment advisers and brokers, the SEC is preparing a consistent standard for both. SEC chair Walter Clayton has said that clarity and consistency are key to regulating areas supervised by more than one agency. This appears to be a key priority for the SEC chairman. Clayton’s work on the fiduciary…
With the changes and updates regarding the reporting rules for 1099-Misc Forms some business owners may be tempted to guess as to what the rules are, or just give up choosing to file nothing at all. This can be dangerous as the penalties of $30 to $250 per statement, with no maximum, can add up…