What a great time of the year. The holidays are upon us, and tax season is right around the corner. Since there is still time to make any reporting changes needed before year end, those who are 2% or greater shareholders in an S- Corporation should be sure not to miss this item. As most […]
Read More… from Abbott Pratt Tax Talks: Health Insurance for S-Corp Owners
Year end is only a few weeks away and as a business owner, it may be most tax advantageous for you to accelerate deductions into the current tax year. One way of doing this is to charge last minute expenses on your business credit card. The business receives a deduction at the time the card […]
Going through the rooms of our house for our family’s upcoming move, my wife and I were constantly debating whether or not we would keep or purge our accrued belongings. Instead of cramming the household items into bags and tossing them out with the trash, we knew our valuable, yet slightly used items could possibly […]
Read More… from Abbott Pratt Tax Talks: Non-Cash Charitable Contributions
Classify the money you put in the business as owner loans, NOT as equity By classifying the funds as loans, you are giving yourself the ability to repay once the business has sufficient cash flow. In addition, all owner loans should be repaid prior to taking compensation. Hold off on taking compensation If possible, it […]
Read More… from Essential Tax Strategies for Year 1 of Operations
Here’s why the Massachusetts Department of Unemployment Assistance might now be charging you monthly. If you have an employee covered by MA health, employers are now responsible to pay up to $750 per employee per year to the MA DUA. This payment is based on 5% of the first $15K of the employee’s wages. The […]
Recently, the IRS answered the question on many business owners’ minds: Can businesses still generally deduct 50% of the food and drink expenses related to operating their business? The answer, in most cases- Yes! The deduction is allowed so long as: the expense is ordinary and necessary, the expense is not lavish, the taxpayer or […]
Having an associate buy into a company is often one of the most rewarding moments of the selling owner’s career. The Associate buy-in can take many forms, but one method we have advised and highly recommend is a staggered purchase of the following: Initial buy-in of 25% ownership 2nd buy-in at a later, predetermined date […]
No matter where you are with your company – at the start-up phase, still growing, or at full maturity – it’s always important to keep the end in mind. Often, business owners wait too long to begin planning their exit strategies. We recommend using these 5 questions to get the conversation rolling to make a successful departure […]
Too often, business owners are so focused on their company’s financial results that they forget to pay attention to the people who are helping them achieve those results. Use these practices as a way to strengthen the relationship between you and your staff. 1) Diagnose […]
Read More… from Helpful Practices To Enhance The Employer / Employee Relationship
The new 20% pass through deduc- tion can be a huge tax savings for many small businesses and their families. Get the conversation going now and strategize ways to take full advantage of this deduction! Our Pass Through Deduction Chart will help you focus your unique needs. [custom-button link=”https://granitepeakcpa.com/wp-content/uploads/2018/09/Abbott-Pratt-Blog-Mock-1.pdf”]Download Pass Through Deduction Chart[/custom-button] […]