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Consider conducting a final tax planning review now to see if you can still take actions to minimize your taxes this year. Here are some ideas to get you started. Assess your income. Begin by determining how your income this year will compare to last year. Then apply any tax implications this income change may …
EXECUTIVE SUMMARY Individual taxpayers are subject to different rules for deducting different types of interest expense. The five primary types of interest for individual taxpayers are student loan interest, qualified residence indebtedness interest, investment interest, business interest, and personal interest. The law known as the Tax Cuts and Jobs Act temporarily introduced new rules for …
Continue reading Five types of interest expense, three sets of new rules
EXECUTIVESUMMARY Under Sec. 1202, gain on the sale of qualified small business (QSB) stock held for five years is partially or entirely excluded from income. Since Sec. 1202 was enacted, the maximum exclusion has ranged from 50% to the current 100% of gain on qualifying stock sales. For stock to be QSB stock, the corporation …
Continue reading Qualified small business stock gets more attractive
The IRS on Thursday explained how taxpayers who may be eligible for the Sec. 36B premium tax credit or who may have to pay the Sec. 5000A shared-responsibility payment should determine their status now that the law known as the Tax Cuts and Jobs Act, P.L. 115-97, has reduced the personal exemption deduction under Sec. …
Continue reading How the suspension of personal exemptions affects health-care-related provisions
Shareholders of closely held C corporations commonly lease real estate, equipment, and other property to the corporate entity, either directly or through a separate partnership, a limited liability company, or an S corporation. Advantages that can motivate these rental arrangements include the following: Avoiding payroll taxes: Rental income from real estate is not subject to …
The revised limitation on interest expense brought about by the law known as the Tax Cuts and Jobs Act (TCJA), P.L. 115-97, may affect a broader base of businesses than originally anticipated by many. The newly minted Sec. 163(j) limits the deduction for business interest to the sum of business interest income and 30% of …
Continue reading Sec. 163(j) places renewed importance on tax shelter status
The IRS proposed new rules under the global intangible low-taxed income (GILTI) provision (Sec. 951A) added by P.L. 115-97, the law known as the Tax Cuts and Jobs Act (REG-104390-18). Sec. 951A requires U.S. shareholders of controlled foreign corporations (CFCs) to include in their gross income their GILTI income for that tax year (the inclusion …
Continue reading IRS issues proposed regs. for GILTI inclusions
It's important for business owners to understand the risks behind signing personally on a business loan or line of credit. Most lenders require that small businesses sign personally. If the business defaults the debt, it will not only hurt their business but also their personal finances and credit. The process of applying for a loan …
Continue reading The Risks Associated With a Personal Guarantee
As a small business owner, perhaps you've been wanting to start a retirement plan for some time now and just don't know where to start. To help you discover which retirement plan is best for you, I put together a list of my favorites. They are easy to set up and cost effective to maintain. …
Continue reading 4 Best Retirement Plans for Small Business Owners
In a data-driven world, it’s important to make sure your small business is handling customer information according to the GDPR requirements. General Data Protection Regulation (jokingly referred to as Gosh Darn Privacy Rules) is a complex territory to navigate, and as a small business owner, you might not be sure if it applies to you. …
Continue reading 6 Steps to Ensure Your Small Business Is GDPR-Compliant
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