Category Archives: Tax Tips

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…)

Midyear tax planning tip

Take time this summer to examine your investment portfolio for potential tax savings, such as selling stocks that are worth less than you paid to offset your capital gains. You might also donate appreciated stock that you have held for more than one year to charity and avoid capital gains altogether – plus getting a deduction for the stock’s fair… (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…)

Check the “support” test to maintain dependent deductions

Keep your college student qualified as your dependent by meeting the “support” test. Generally, your child cannot provide over one-half of his or her own support during the year. Add up funds your child will have received from work, student loans, and other sources of income. Do you need to increase your level of support during the rest of the… (more…)

Watch out for the AMT

As you review your income tax situation at midyear, consider your exposure to the alternative minimum tax (AMT). The alternative minimum tax involves a separate tax calculation that disallows many of the deductions and credits used to calculate regular income tax. If you have high levels of deductions or exemptions, or if you exercise incentive stock options this year, it’s… (more…)

Summertime tax tip

If you itemize your deductions, you can deduct the mortgage interest and property taxes paid for your vacation home. A boat or RV can qualify as a vacation home if it has sleeping quarters, cooking facilities, and a bathroom. If a retreat also serves as rental property, you can control your tax deductions by changing the number of days you… (more…)

Deadline to elect S-Corporation status

If you own a small business, you have seventy five days from the beginning of your fiscal year (March f15th for calendar year entities) approval of all shareholders.  The principal advantage of an S corporation is that you avoid paying double taxes. In a traditional C corporation, profits are taxed at the corporate level, and they’re taxed again when paid… (more…)

February 2 is the Deadline for 1099 Reporting

        Form 1099s must be filed by businesses each year. This year the deadline for filing falls on February 2, though electronic filers have until March 31 to file.  Our Bergen County CPA office offers you insight to this. The most common form for businesses is probably Form 1099-MISC, used to report miscellaneous payments to non-employees. This… (more…)

Review Your Credit Policies

There are many ways to make your business more profitable, and sound credit policies are high on the list. The current slowdown in the economy is a good reason to reexamine your company’s policies. Keep the following items in mind as you review your policies. Our Bergen County CPA office offers you insight to this. Don’t be so eager to sign… (more…)

Use the 80-20 Rule to Increase Your Business Profits

How well do you know your customers? Which ones are the most profitable? Which ones take most of your time? It’s worth taking the time to find out. If your business is like most, the 80-20 rule applies. That is, 80% of your profits come from 20% of your customers. Our Bergen County CPA office offers you insight to this. If… (more…)