The 2017 Tax Cuts and Jobs Act (TCJA) included a change to the meals and entertainment deduction and disallowed businesses to take the 50% for entertainment, amusement or recreation expenses. Business are still allowed to take a 50% deduction on business meals though. What qualifies as a business meal? In order to qualify as […]
One of the key takeaways from the Tax Cuts and Jobs Act passed in December of 2017, which took effect for 2018, was the threshold for requiring taxpayers to follow the accrual method of accounting. The threshold was increased from $5 million of gross receipts to $25 million. Now, businesses that average less than $25 […]
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 […]
Read More… from Still Working After Age 70 ½? You Might Not Have to Begin 401(k) Withdrawals
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
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 […]
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] […]
Now is the time to be reviewing year to date earnings and fine-tuning year end income tax planning strategies. No one likes surprises, and as we have seen and discussed with clients, and as this article suggests, many taxpayers can be looking at unexpected liabilities come April 2019. Start the conversation now, so these next […]