Six Essential Tax Considerations for Small Businesses and Start-Ups To navigate the complexities of tax compliance and optimization, we have compiled a list of six essential tax considerations that can significantly impact the financial success of your small business or start-up. Step 1: Identifying Individual and Business Filing Status Choosing the Read more…
Nine factors commonly used to gauge whether it’s a business or a hobby Businesses engaged in activities for-profit can deduct costs as incurred whereas activities considered “hobbies” are subject to limitations on deductibility. By strategically addressing these following factors (and possibly others), you can strengthen your position to account for Read more…
Required Reporting of Cash Receipts Over $10,000 In general, businesses must report to the IRS cash transactions in excess of $10,000 on Form 8300, Report of Cash Payments Over $10,000 Received in a Trade or Business within 15 days and the requirement cannot be avoided by splitting into multiple transactions. Before January Read more…
Payroll Protection Program Loans, Round 2 Section 311 of the Consolidated Appropriations Act (“Act”) introduced the PPP “Second Draw Loans” (PPP2). It also expanded the list of qualified PPP eligible expenses while narrowing the definition of which businesses will be eligible for a 2nd PPP loan. The Act extended the Read more…
IRS Reintroduces Form 1099-NEC for Reporting Nonemployee Compensation In recent years, Form 1099-MISC has been used to report payments of $600 or more for services performed in a trade or business by someone who is not an employee. However, beginning with the 2020 tax year, the IRS has reintroduced Form Read more…
Businesses Should Remain Aware of Payment Scams In December of 2018, officials of Cabarrus County in North Carolina fell victim to scammers. County officials believed they had received an email from a contractor they hired to build a new high school, which claimed that the company had changed their bank Read more…
2019 Year-End Planning for Businesses As year-end approaches, it is a good time to think of planning moves that may help lower your business’s 2019 tax bill. Last year, the federal tax reform bill commonly known as the Tax Cuts and Jobs Act of 2017 (“Tax Act”) became effective, resulting Read more…
Be Aware of California’s Stringent Source Income Rules for Service Businesses A recent California Office of Tax Appeals ruling determined that an Arizona individual who had a contract for screenwriting services for two California LLCs had California source income on which he had to pay California tax, even though Read more…
2018 Year-End Income Tax Planning for Your Business Year end tax planning for the 2018 tax year may be more complex and challenging than in prior years. The most immediate advice we can provide is…. plan and be prepared. Below we have compiled a list of items that may Read more…