Tax planning is good for corporations too

If you own a calendar-year corporation, you can benefit from planning moves you make before December 31. For example, corporations can accelerate or defer income or deductions to stay within a certain tax bracket. You’ll also want to look at your corporate alternative minimum tax exposure to determine whether you qualify for an exception to the tax. Finally, reviewing estimated… (more…)

Turn your part-time employees into winners

Part-time employees play a valuable role in a small business. They help deal with fluctuations in workload and can job-share with full-timers. In addition, because part-timers often look for flexibility in hours, you may find a skilled worker whose schedule fits perfectly with existing staff. But part-timers can turn into a liability if not managed well. You could end up… (more…)

Decide when to start social security benefits

Whether you should take social security retirement benefits at the earliest possible date or defer benefits until reaching normal retirement age (or even age 70), depends on several factors. For example, you’ll want to consider your overall health and life expectancy, your plans to earn income before reaching normal retirement age, anticipated returns on your other investments, and, surprisingly, your… (more…)

Get ready for the “Cadillac” tax

The 2010 Affordable Care Act added a 40% excise tax on high-cost employer-sponsored health insurance (sometimes called “Cadillac” plans). “High-cost” means plans with an annual cost of more than $10,200 for an individual and $27,500 for a family. Beginning in 2018, the tax applies to the amount above that limit. The tax is assessed annually, and is permanent, nondeductible, and… (more…)

Law Revises Due Dates for 2016 Returns

The Surface Transportation and Veterans Health Care Choice Improvement Act of 2015 changed due dates for some 2016 federal business returns (the ones you’ll file in 2017). Here’s a sample of the changes: Partnerships (Form 1065) – 2½ months after the close of the tax year. For calendar-year partnerships, that means a due date of March 15. C corporations (Form… (more…)

Take time for tax planning

Take time to review your 2015 tax situation while there are still a few months to make adjustments. Can you benefit from bunching your itemized deductions? Will increasing your retirement plan contributions cut your tax bill? An investment in a tax review could make a significant difference in your final tax bill for the year.  Please contact our office at… (more…)

How to reduce inventory risk in your business

Study the balance sheet of most retail or manufacturing businesses, and you’ll find inventory near the top of the asset list. Accountants define inventory as raw materials, supplies, work in progress, and finished goods. It’s the stuff sitting on shelves, parked in the lot, or being produced in the factory – merchandise that managers expect to sell in the normal… (more…)

A Quick Recordkeeping Guide

Is your file cabinet overflowing? Do you hesitate to purge tax information because you’re not sure what to keep and what to discard? Here’s a quick guide to help you cut through the clutter. * Expenses. Substantiation for deductions includes charitable donation acknowledgments, receipts for employee business expenses, and automobile mileage logs. Retain these at least seven years after you… (more…)

Managing AGI could protect tax breaks

How close to the edge are you when it comes to tax phase-outs? As you begin your fall tax planning, consider the effects of these benefit-limiting provisions. Knowing how close you are to the “edge” can help preserve tax breaks for 2015. Many phase-outs are based on modified adjusted gross income, or MAGI. MAGI is the adjusted gross income shown… (more…)

Will your child have to file a tax return?

Your child may have to file a 2015 income tax return depending on several factors, including the total amount of income he or she received. For instance, if wages are the only source of income, your child can generally earn up to $6,300 during 2015 before a federal tax return is necessary. However, unless your child can claim an exemption… (more…)