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?
The new year is almost upon us! With each new year comes the compliance aspect of taxes – the preparation and filing of returns. As an employer it is your obligation to make sure all filings are done in a timely manner. Be sure to have Forms W-2, W-3, and 1099-Misc information returns complete and […]
Read More… from Abbott Pratt Quick Tax Tip → Let the Filing Season Begin
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 […]
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