Category Archives: Business Tax Tips

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…)

Accurate inventory numbers are crucial for your business

For many companies, inventory is a significant dollar amount on the company’s financial statements. So it’s crucial that recorded inventory balances reflect actual values. When such accounts aren’t properly stated, the cost of goods sold and current ratios – numbers that often matter to decision makers – may be skewed. If banks discover that your company’s inventory accounts are overstated,… (more…)

Should you incorporate your business?

One of the first decisions you face as a new business owner is whether or not to incorporate your business. The biggest advantage of incorporating is limitation of your liability. Your responsibility for debts and other liabilities incurred by a corporation is generally limited to the assets of the business. Your personal assets are usually not at risk, although there… (more…)

Don’t take a vacation from tax planning

Don’t ignore your opportunity to save on taxes just because it’s summertime. Here are some summertime tips to keep your tax plans going. If you are a sole proprietor with children, you might consider putting them on the payroll during the summer months. Wages paid to your children under age 18 are not subject to social security and Medicare taxes.… (more…)