The past couple of years have shown that unexpected events can wreak havoc on even the best-laid business plan. In a volatile economic climate, it’s wise to be prepared for every eventuality — including the possibility of selling your business fast. Even if the sale isn’t urgent, it’s important to prepare your business for potential
If you’re running a business, whether it’s new or established, it’s possible that you may experience losses. But don’t worry, the federal tax code can help. You have the option of applying your losses to offset taxable income in future years, subject to certain limitations, through the net operating loss deduction. Qualifying for a Net
If your company needs to expand or relocate, keep the rehabilitation tax credit in mind, especially if you like old buildings. Qualified Rehabilitation Tax Credit Expenses The credit for a qualified renovated building that is also a certified historic structure is equal to 20% of the qualified rehabilitation expenditures (QREs). A qualified rehabilitated building is
Nonprofits must manage their financial and accounting records even though they are not subject to income tax. This includes preparing financial statements, collecting payroll taxes, projecting budgets and tracking performance. If nonprofit accounting procedures are not monitored, they can become inefficient over time. Here are some suggestions for policies that your nonprofit should review on
Nowadays, the majority of companies have some intangible assets. These assets’ tax treatment may be complicated. What makes intangible assets so complex? According to IRS regulations, costs that must be capitalized include: Acquiring or creating an intangible asset, Creating or enhancing a separate, distinct intangible asset, Creating or enhancing a “future benefit” identified in IRS
The Tax Cuts and Jobs Act (TCJA) imposed a new limitation on deductions of business interest expense by certain companies. And the limit, found in Section 163(j) of the Internal Revenue Code, became even more restrictive in 2022 — especially for capital-intensive businesses. As a business owner, you should determine whether the deduction limitation applies
What is asset depreciation? Major business purchases, like machinery, are considered large assets. Depreciation is both an accounting and tax calculation method. From an accounting perspective, rather than deducting the entire cost of the purchase of a major asset in one year, you allocate the purchase price over the span of the asset’s lifetime. From
The Tax Cuts and Jobs Act (TCJA) was passed into law in 2017, but its effects are still being felt years later. A number of the law’s provisions have already expired or will do so soon. The present deduction for research and experimentation (R&E) costs was one provision that ended last year. R&E Expenses Numerous
Businesses can often write off marketing and advertising expenses that keep current clients and attract new ones. However, advertising and marketing costs must be “ordinary and necessary” in order to be deducted. Not all expenses are allowed to be deducted, as one taxpayer recently discovered in U.S. Tax Court. An ordinary expense is one that’s
State and Local Income Taxes State Income Taxes When hiring a remote employee who lives in another state, you’ll need to withhold income tax for your employee’s state of residence. You’ll also need to register with the appropriate state agency in order to remit these taxes. So how do you determine a remote employee’s state