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To give grantors and contributors to tax-exempt organizations more easily accessible guidance on deductibility and reliance issues, the IRS has combined into one revenue procedure previous scattered pieces of guidance dating back to 1981 (Rev. Proc. 2018-32). The new revenue procedure tells grantors and contributors when they can rely on a listing of an organization …
The IRS announced that it plans to issue regulations in response to state legislation intended to help taxpayers avoid the $10,000 limitation on the deduction for state and local taxes under Sec. 164 as amended by P.L. 115-97, known as the Tax Cuts and Jobs Act (Notice 2018-54). That limitation applies to individual taxpayers for …
Continue reading IRS to clarify rules on payments in lieu of state and local taxes
Running a business can be expensive. Everything comes at a cost, from keeping the lights on to buying inventory. Luckily, you may be able to deduct some of these business expenses to reduce your taxes. Even super small businesses with no or few employees can benefit from these deductions. Note: If you plan to claim …
Continue reading 11 Business Deductions That Even the Smallest Businesses Can Claim
The IRS on Thursday issued a warning to employers and small businesses to beware of growing attempts by cybercriminals to target businesses to obtain the business’s and employees’ information. These criminals then use the stolen information to open credit card accounts and file fraudulent tax returns for “bogus refunds.” In the past two years, the …
Continue reading Small businesses should guard against tax-return identity theft
The IRS issued the calendar year 2019 inflation-adjusted figures for the annual contribution limits for health savings accounts (HSAs) and the minimum deductible amounts and maximum out-of-pocket expense amounts for high-deductible health plans (Rev. Proc. 2018-30). Under Sec. 223, individuals who participate in a high-deductible health plan (HDHP) are permitted a deduction for contributions to …
Continue reading IRS issues HSA contribution limits for 2019
If you are starting a business, it is essential that you familiarize yourself with all of the necessary tax forms that you will need to file with the IRS and the various taxes you will be required to pay. Every business is required to file a federal tax or information return. The type of business …
Accounting may not be your favorite topic, but it’s a necessary part of running a legal and functional business. You must report your business’s income and expenses, report payments to workers, and more. You might be wondering, What tax forms do I need for a small business? To get the ball rolling, here are a …
The answer to this question essentially boils down to whether someone who does work for you is self-employed or an employee. Here’s the difference: Self-employed independent contractors are paid in full for their services and are responsible for settling up with federal and state governments at tax time. The payor reports payments on IRS Form …
Continue reading What’s the difference between a 1099 and W-2?
Congress recently passed the “Tax Cuts and Jobs Act” which impacts both individuals and businesses. There are two important tax changes in 2018 that will impact every business owner in the United States. Corporate tax rates are now a flat 21% (permanent change) Pass through entities such as LLC’s get a 20% deduction (temporary change …
Continue reading 2 Important Tax Changes for Small Businesses in 2018
If you use your home for your business -- whether to greet clients, work on bookkeeping or store roofing supplies -- you may be entitled to deduct home office expenses from your business income. That includes whatever share of property taxes that you can assign to your workspace. If you own a home, you can …
Continue reading How to Deduct Property Taxes on a Home-Based Business
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