Medical expenses: What it takes to qualify for a tax deduction
Posted November 26, 2019 / No comments
As we all know, medical services and prescription drugs are expensive. You may be able to deduct some of your expenses on your tax return but the rules make it difficult for many people to qualify. However, with proper planning, you may be able to time discretionary medical expenses to your advantage for tax purposes.
Read MoreCan employees donate unused vacation pay to charity?
Posted November 25, 2019 / No comments
Like many employers, you may allow employees to carry over unused vacation pay from one year to the next. With the year winding down, and gift giving on the minds of many, certain staff members might inquire about donating their unused vacation pay to charity. In turn, you may wonder: Is doing so allowed under
Read More2 valuable year-end tax-saving tools for your business
Posted November 25, 2019 / No comments
At this time of year, many business owners ask if there’s anything they can do to save tax for the year. Under current tax law, there are two valuable depreciation-related tax breaks that may help your business reduce its 2019 tax liability. To benefit from these deductions, you must buy eligible machinery, equipment, furniture or
Read MoreManage your working capital more efficiently
Posted November 22, 2019 / No comments
Working capital is the difference between a company’s current assets and current liabilities. For a business to thrive, its working capital must be greater than zero. A positive balance enables the company to meet its short-term cash flow needs and grow. But too much working capital can be a sign of inefficient management. In
Read MoreWhat is your taxpayer filing status?
Posted November 19, 2019 / No comments
For tax purposes, December 31 means more than New Year’s Eve celebrations. It affects the filing status box that will be checked on your tax return for the year. When you file your return, you do so with one of five filing statuses, which depend in part on whether you’re married or unmarried on December
Read MoreThe tax implications if your business engages in environmental cleanup
Posted November 18, 2019 / No comments
If your company faces the need to “remediate” or clean up environmental contamination, the money you spend can be deductible on your tax return as ordinary and necessary business expenses. Of course, you want to claim the maximum immediate income tax benefits possible for the expenses you incur. These expenses may include the actual cleanup
Read MoreHoliday parties call for inclusion and gratitude
Posted November 15, 2019 / No comments
Year end can be a stressful time for those in ownership and management positions. Along with having to tackle myriad tasks related to financial reporting and tax planning, you also probably need to plan a holiday party. And whether it’s the food or the venue or the time of day, employees have been known to
Read MoreClose-up on pushdown accounting for M&As
Posted November 15, 2019 / No comments
Change-in-control events — like merger and acquisition (M&A) transactions — don’t happen every day. If you’re currently in the market to merge with or buy a business, you might not be aware of updated financial reporting guidance that took effect in November 2014. The changes provide greater flexibility to post-M&A accounting. Pushdown accounting is optional
Read MoreUsing an e-certification process for 401(k) hardship distributions
Posted November 13, 2019 / No comments
You can reduce taxes and save for retirement by contributing to a tax-advantaged retirement plan. If your employer offers a 401(k) or Roth 401(k) plan, contributing to it is a taxwise way to build a nest egg. If you’re not already contributing the maximum allowed, consider increasing your contribution rate between now and year end.
Read MoreSmall businesses: Get ready for your 1099-MISC reporting requirements
Posted November 13, 2019 / No comments
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