Which Assets Cannot be Depreciated?
Which assets cannot be depreciated? As a business owner, it’s important to know which assets can — and cannot — be depreciated in order to properly calculate your tax obligations.
How to Minimize the Impact of R&E Expense Changes
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
What are Ordinary and Necessary Advertising Expenses?
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
How to Survive an IRS Audit
IRS audit rates are historically low, according to the latest data, but that’s little consolation if your return is among those selected to be examined.
How to Set Up Payroll When Your Remote Employee Lives in Another State
Hiring remote employees opens up the talent pool and potentially lowers office costs. But when your remote employee lives in another state, there are important tax implications to keep in mind as you set up payroll.
How Tips Affect Taxes
Many businesses like restaurants, hotels and salons employ workers who earn tips as part of their pay. Here are the responsibilities of both the employee and the employer if you have tipped workers.
Tax Limits for Businesses Increase for 2023
An array of tax limits for businesses are indexed annually, and due to high inflation, many have increased more than usual for 2023. Here are some that may be important to you and your business.
One Less Tax Form: IRS Delays Lower Cash App & Venmo Tax Reporting Threshold
Do you use Venmo or another cash app for business transactions? You’ll likely be receiving less tax forms this year, thanks to a recent announcement by the IRS.
Standard Business Mileage Rate Increases for 2023
The optional standard business mileage rate that is used to determine the deductible cost of operating a vehicle for business purposes will increase in 2023, despite the fact that the national price of gasoline is currently slightly lower than it was a year ago. The 2023 cents-per-mile rate for the use of a car, van,
Employers Should be Cautious of ERC Claims that Seem Unrealistic
During the peak of the COVID-19 pandemic, the Employee Retention Benefit (ERC) aided employers who retained employees on staff. Even if the credit is no longer offered, qualified employers who haven’t yet claimed it may still be able to do so by filing revised payroll returns for the tax years 2020 and 2021. However, the
Comparing Business Entity Types: Which is Best for Your Business?
Which entity type is best for your business? The answer to this question depends on your current business status, your business goals, and the best way to maximize tax savings. The answer can also change depending on where your business is at in terms of growth. For example, as you launch a new business, one entity type may be best, like an LLC. After several years of operations, however, another entity type, like a C-corporation, may be a better choice.