Income comes in all different types, and each type is taxed differently. For practice owners who also own the real estate that they operate out of, there is a tax election to group rental and business income to treat it as one type. Typically, people who aren’t real estate professionals are faced with an additional […]
The Tax Cuts and Jobs Act that was passed in 2017, created several sweeping changes to tax law, one of which was the implementation of the Section 199A Deduction. IRC Section 199A allows individuals with pass-through business income to deduct up to 20% of their qualified business income (QBI) from their taxable ordinary income on […]
An S Corporation is a type of business entity that elects to pass corporate income, losses, deductions and credits through their shareholders for federal tax purposes. Shareholders of S corporations report the flow-through of income and losses on their personal tax returns and are assessed tax at their individual income tax rates. We recommend this […]
A month after the new year begins, your business may be required to comply with rules to report amounts paid to independent contractors, vendors and others. You may have to send 1099-MISC forms to those whom you pay nonemployee compensation, as well as file copies with the IRS. This task can be time consuming and […]
Read More… from Mark Your Calendars! Time to Get Ready for Your Small Business 1099-Misc Reporting
With the new school year right around the corner, teachers are beginning to get their classrooms ready for the beginning of the school year. In many cases, educators have to purchases items for the classroom that the school is unable to reimburse them for. A tax deduction is available for educators that allows up to […]
Read More… from Claiming a Tax Deduction for Unreimbursed Educator Expenses
This week we were meeting with a client who recently changed his residency and left New England to settle down in the Sunshine State. Like our client, a change of residency may be a common discussion in your household, especially as you approach retirement. Don’t forget to factor state and local taxes into the equation- […]
Read More… from Thinking About Moving to Another State? Don’t Forget About Taxes.
Have you recently started a new business? Or are you contemplating starting one? Launching a new business is a hectic, exciting time. And as you know, before you even open the doors, you generally have to spend a lot of money. You may have to train workers and pay for rent, utilities, marketing and more. […]
Read More… from Starting a Business? How You Should Treat Expenses on Your Tax Returns.
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 […]
Read More… from The 2018 Gift Tax Return Deadline is Almost Here
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