New Tax Legislation

Last week, congress passed new tax legislation. Among the important provisions, some of the taxpayers effected by this legislation include: those who itemize for medical and dental expenses, or mortgage insurance premiums; have tuition & fees deductions; investors in empowerment zones; solar, business and non-business energy efficient property purchasers; employers providing Family and Medical Leave;…

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It’s the end of another year, and with it come changes in payroll tax reporting and withholding rates. The following information will be effective for all payroll paid after December 31, 2019. Additionally, we are providing some reminders to help get through the 2019 annual reporting process. PAYROLL REMINDERS Remember to add health insurance for…

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As year-end approaches, each business should consider the many opportunities that might be lost if year-end tax planning is not explored. A business may want to consider several general strategies, such as use of traditional timing techniques for delaying income recognition and accelerating deductions. A business should also consider customized strategies tailored to its particular…

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Most employers who want to avoid the administration costs of a 401(k), deliberate between the traditional (or Roth IRA), SIMPLE plan, or a SEP IRA. The SEP IRA is usually appealing because it allows for contributions up to $56,000 annually. Compare this with the traditional IRA or Roth limits up to $6,000 – $7,000 a…

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Exiting your business, whether through sale or succession, can be fraught with stress. However, some of that anxiety can be alleviated by addressing 10 missteps business owners often make. 1. Being too emotionally attached to the business It is understandable that business owners have an emotional attachment to their businesses. After all, they have typically…

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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…

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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…

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