In recent years, end of year tax planning for businesses has been further complicated by uncertainty over the future availability of many tax incentives. The 2013 year-end is no different. In the early hours of January 1, 2013, the Senate passed the American Taxpayer Relief Act of 2012, which permanently extended the so-called Bush-era tax cuts. However, other popular provisions were only extended through 2013. Therefore, 2013 tax strategies include concerns over expiring provisions. But 2013 is also unique due to changes that are affecting businesses. (more…)
The IRS distinguishes between dues paid to clubs, which often are not deductible, and dues paid to professional organizations, which are often deductible.
Generally, you cannot deduct dues paid to social, athletic, sporting, airline, hotel, and luncheon clubs. The IRS generally views these organizations as providers of entertainment for their members. (more…)
In recent years, end-of-the-year tax planning for businesses has been complicated by uncertainty over the future availability of many tax incentives. This year is no different. In 2010, Congress extended many business tax incentives for one or two years. Now, those incentives have expired or are scheduled to expire. Whether they will be extended beyond 2012 is unclear as Congress debates the fate the Bush-era tax cuts and across-the-board spending cuts scheduled to take effect in 2013. In the meantime, you need to be aware of the expiring provisions and explore developing a multiyear tax strategy that takes into account various scenarios for the future of these incentives. (more…)
Do you have children? Are they on your payroll? If they’re not, and if the situation is right, you may want to hurry and get your children on the payroll. Do you give money to your parents or other relatives? If so, keep reading. (more…)
Do you need a new or replacement vehicle? To achieve any purchase benefit from a vehicle this year, you need (before midnight on December 31) to both own the vehicle, and have placed the vehicle in service for your business.
Ready to take the plunge? Here are how tax matters are handled for the various vehicles you may be looking at. (more…)
Strictly speaking, personal retirement and medical expenses are not a business expense. But with a little planning and some specific requirements, your company can be deducting these expenses on your behalf. (more…)
Here are a few year-end tax-planning strategies. These are meant to suggest potential area’s to save, but many have specific requirements. Be sure to implement the strategies with professional advice from a tax expert – this is not a do-it-yourself project. (more…)
The thinking behind the infamous scarlet letter is alive and well in California government.
Last month Gov. Brown signed into law Senate Bill 459, concerning the misclassification of workers. In addition to the large fines for willful misclasification (up to $25,000 per violation), employers must post a notice on their website and “displayed prominently” in an area that is “accessible to all employees and the general public at each location where a violation. . .occurred.”
As many of you have already wrapped-up your tax returns and finding someplace to keep all of the supporting documentation, one of the questions we often here is “How long should I keep this?”. Here’s what you need to keep and what you can throw out without fearing the wrath of the IRS.
I guess the off-the-cuff response to the question is “As long as it is relevant.”, but that doesn’t exactly help. So let’s look at specifics: (more…)
In a court case involving an individual, the judge allowed $780 as a business deduction for auto use. The individual claimed $6,033 on his tax return, but he was missing that critical mileage log to prove his business use. They could have preserved the additional $5,253 in deductions by following a few simple rules. (more…)