If you participate in a qualified retirement plan, such as a 401(k), you must generally begin taking required withdrawals from the plan no later than April 1 of the year after which you turn age 70½. However, there’s an exception that applies to certain plan participants who are still working for the entire year in […]
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In the course of operating your business, you probably spend time and money “wining and dining” current or potential customers, vendors and employees. The big question is, what can you deduct on your tax return for these expenses? Meal deductions are still allowed You can still deduct 50% of the cost of food and beverages […]
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Did you make large gifts to your children, grandchildren or other heirs last year? If so, it’s important to determine whether you’re required to file a 2018 gift tax return — or whether filing one would be beneficial even if it isn’t required. Filing requirements Generally, you must file a gift tax return for 2018 […]
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Recent changes to federal tax law and accounting rules could affect whether you decide to lease or buy equipment or other fixed assets. Although there’s no universal “right” choice, many businesses that formerly leased assets are now deciding to buy them. Pros and cons of leasing From a cash flow perspective, leasing can be more […]
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Incentive stock options (ISOs) are a popular form of compensation for executives and other employees of corporations. They allow you to buy company stock in the future at a fixed price equal to or greater than the stock’s fair market value on the ISO grant date. If the stock appreciates, you can buy shares at […]
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With tax season well underway, questions persist about what has changed with the enactment of the new tax laws. Itemized deductions are not what they used to be for individual taxpayers. Highlighted below are a few of the many changes that are impacting taxpayers this filing season. Mortgage interest deduction. You generally can claim an itemized […]
The increasing complexity and required compliance to Sales and Use Tax are causing confusion for many business owners. Most often, the uncertainty is about what is taxable on initial purchase, and what is subject to tax on resale. For Veterinarians, the difficulty has heightened with the increased use of online pharmacies. Use this chart as a starting […]
As illustrated in a previous post, the tax law changes of 2018 brought along a new benefit to pass through entities: The QBI Deduction, which is a deduction up to 20% of qualified business income. This Section, though, is full of complexities, as it includes many limitations and multiple calculations. The biggest limitation was if […]
Who doesn’t love tax credits?! They are a dollar for dollar reduction of your tax liability. The IRS has a specific credit for qualified businesses that has added a SEP, SIMPLE or qualified retirement plan. If qualified, your business may be eligible for a credit up to 50% of the costs, with a maximum credit […]
Read More… from Abbott Pratt Tax Talks – Spotlighting the Retirement Plan Credit
There is a long winded answer to this question, and there is a short one… we will provide the short but are always open for a discussion to expand upon our answer. The short answer: In most cases a minimum of 3 years-we prefer 7. However, if you store them electronically, you’ll have them forever; […]
Read More… from Abbott Pratt Tax Talks – How Long Should I Hold Onto My Tax Records For?