Posts Tagged ‘Taxes’
Tax Advantages: Reimbursing Employees for Education
Reimbursing employees for education expenses can both strengthen the capabilities of your staff and help you retain them. In addition, you and your employees may be able to save valuable tax dollars. But you have to follow IRS rules. Here are a couple of options for maximizing tax savings. An Employee Fringe Benefit Qualifying reimbursements…
Read MoreDo You Owe Estimated Taxes on April 18?
We all know that April 18, 2017 is Tax Day this year—the day by which personal income tax returns must be postmarked and mailed or electronically filed with the IRS. However, many taxpayers forget that this longstanding personal filing deadline also represents an estimated tax payment deadline. What Are Estimated Taxes? The concept of estimated…
Read MoreTax Rules for Bad Debts on a Balance Sheet
How do income tax rules treat bad debts? Facts: There are two provisions in the Income Tax Act (ITA) for bad debts. Discussion: The first way to claim a bad debt is covered in Section 20 of the ITA if the following requirements are met: the debt was owing to the taxpayer at the end…
Read MoreWhat Franchise Expenses Are Tax Deductible?
It’s everybody’s favorite time of year: tax time! [Collective groans from the audience.] In reality, nobody loves tax season. It’s a head-scratching time of year, and entrepreneurs and franchise owners alike always have plenty of questions that relate to their taxes. For example: do you know which of your franchise expenses are tax deductible? If…
Read MoreHow to Determine Taxability of Services
If you followed our recent series about multi-state tax facts for various types of technology companies, you likely noticed a common theme: it’s important to determine which states a business has created in so that they know which sales and use tax laws to follow. Although it can be tricky, the good news is there…
Read MoreSmall Business Bookkeeping: What You Need to Know
In the rush and excitement of starting a new venture, it’s easy to overlook the importance of good small business bookkeeping in the early days and let things slide. When this happens, small business owners often get a rude awakening in the not-so-early days of the business. This can come in a variety of ways,…
Read More5 Tax Saving Tips Most Small Businesses Don’t Follow
Taxes are one of the biggest burdens facing small businesses. According to the Small Business Administration, many small businesses pay effective tax rates near 30%. Many financial experts argue that high taxes are killing small businesses. “The truly wealthy people pay nothing in taxes compared to me,” said Michael Fredrich, the owner of MCM Composites.…
Read MoreIRS Reveals 2017 Dirty Dozen Tax Scams
Each and every year, the Internal Revenue Service releases a list of the “dirty dozen” tax scams the agency recommends taxpayers be on the lookout for throughout the year. That’s because scammers seem to come up with innovative tactics to bilk money out of innocent taxpayers all the time. The list also includes tax moves…
Read MoreBusiness Entity Selection and Tax Consequences of Converting
For this post, Brandon Rains, founder of the Rains Laws Firm and an expert on business formation, espouses his observations about business structure changes and I address the income tax reporting requirements of those changes therein. Generally speaking there are five choices when it comes to business structure and income reporting requirements: Sole Proprietorship (IRS…
Read MoreHow to Take Advantage of the Section 179 Deduction
Small businesses have a friend at the IRS. This friend, known as the Section 179 deduction, allows small businesses, in many cases, to deduct the entirety of a capital investment in a single tax year. Taking advantage of the Section 179 deduction is essential for any small or medium sized business. While this deduction is…
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