How do Taxes Play a Role in M&A Transactions?
If you are considering buying or selling a business, it’s important to understand the tax implications.
Standard Mileage Rate Increases for Remainder of 2022
Business owners are aware that the price of gas is historically high, which has made their vehicle costs soar. The average nationwide price of a gallon of unleaded regular gas on June 17 was $5, compared with $3.08 a year earlier, according to the AAA Gas Prices website. A gallon of diesel averaged $5.78 a
ESG for Small Businesses
Environmental, social, and governance (ESG) criteria are becoming some of the more popular metrics for investors to predict the future success of companies they are considering for an investment. But how can your small business benefit from ESG practices? Essentially, ESG standards take into account the risks associated with companies that have undesirable environmental practices
How to Calculate Estimated Tax Payments
The next quarterly estimated tax payment deadline is June 15 for individuals and businesses, so it’s a good time to review the rules to calculate estimated tax payments for federal taxes. You want your business to pay the minimum amount of estimated taxes without triggering the penalty for underpayment of estimated tax. Four methods to
Rules for Deducting a Spouse’s Travel Expenses on a Business Trip
If you own a business and travel for work, you may be wondering if your spouse’s travel expenses on trips may be deducted. The requirements for deducting a spouse’s travel expenses are quite strict. First and foremost, your spouse must be your employee in order to qualify. This means you can’t deduct a spouse’s travel
1099-K Filing Threshold Drastically Reduced
Businesses should be aware that they may be liable for sending additional information reporting forms because more employees may fall within the necessary range of income to be reported in 2022. The reporting threshold for Form 1099-K, “Payment Card and Third-Party Network Transactions,” has been drastically reduced this year. Businesses and employees in specific sectors
How the Russian Invasion of Ukraine is Affecting Accounting
The Russian invasion of Ukraine places a direct emphasis on those geographic locations, but the impacts of this military activity extend well beyond the borders of these two countries. The resulting economic sanctions to punish Russia have disrupted global supply chains for trade and business deals, compounding existing woes. If your business has any involvement
What to do with an IRS Notice CP2100 About Mis-Matched Records
The IRS has begun mailing notices to businesses, financial institutions and other payers that filed certain returns with information that doesn’t match the agency’s records. IRS Notices CP2100 and CP2100A are sent by the IRS twice a year to payers who filed information returns that are missing a Taxpayer Identification Number (TIN), have an incorrect
Long-Term Capital Gains Rules when Selling Business Property
If you sell business property, several restrictions may apply if you have a long-term capital gain. Assume, for the sake of simplicity, that the property you intend to sell is land or depreciable property utilized in the company that you’ve owned for more than a year. (There are separate standards for property held principally for
What to Know About Taxes when Adding a New Partner
In a partnership, adding a new partner has a number of financial and legal implications. Let’s imagine you and your partners want to add a new partner to the mix. By making a cash contribution, the new partner will have a one-third interest in the partnership. Assume that your partnership interests have adequate bases so
Choosing an Entity Type: C Corp or Pass-Through Entity?
Are you thinking about starting a company or changing your business structure? If that’s the case, you’ll need to decide whether a C corporation or a pass-through entity (sole proprietorship, partnership, limited liability company (LLC), or S corporation) is ideal for you. There are several factors to evaluate when choosing an entity type, and potential
Business Meal Deductions for 2022
The federal government is helping to pick up the tab for certain business meals. Under a provision that’s part of one of the COVID-19 relief laws, the usual business meal deduction of 50% of the cost of business meals is doubled to 100% for food and beverages provided by restaurants in 2022 (and 2021). So,