Business owners can be some of the most philanthropic people on the planet. No one makes more charitable donations than business owners. The IRS estimates business owners give to five or more charities, which translates to them being about 10 times more generous than that of the general population. In fact, 83% of high net worth business owners actually plan to increase their giving in the next three years as well.
The IRS reminds business owners that the passage of the Tax Cuts and Jobs Act may affect business depreciation deductions and taxes. Generally, we business taxpayers can depreciate the tangible property except for land, including buildings, machinery, vehicles, furniture, and equipment.
As a business owner, one of the biggest challenges is keeping as much of your hard earned money as possible in your own pocket. Last year some clients of mine wanted to find a way to do just that. So I sat down with their CPA and tax attorney to come up with tax strategies to help do just that for this couple. Let me set the stage for what we did for them.
Small Business owners providing health care to their employees should take time to look into the Small Business Health Care Tax Credit, on the IRS website. There are guidelines for those wishing to claim the credit, as well as those that were unable to do so in 2017 because of unavailability of coverage in the Small Business Health Options Program (SHOP) Marketplace. Notice 2018-27 offers directions for calculating the credit under those circumstances.
Summertime is a time of year when people rent out their property. In addition to the standard clean up and maintenance, owners need to be aware of the tax implications of residential and vacation home rentals. Receiving money for the use of a dwelling also used as a taxpayer’s personal residence generally, requires reporting the rental income on a tax return. It also means certain expenses may become deductible to reduce the total amount of rental income that’s subject to tax. Dwelling Unit This may be a house, an apartment, condominium, mobile home, boat, vacation home or similar property. It’s possible to use more than one dwelling unit as a residence during the year. Used as a Home The dwelling unit is a residence if the taxpayer uses it for personal purposes during the tax year for more than the greater of: 14 days or 10% of the total days […]
The tax deadline for most taxpayers was last Tuesday, April 18, 2017. The IRS has some advice for taxpayers who missed the tax return deadline. File and pay as soon as possible. Taxpayers who owe federal income tax should file and pay as soon as they can to minimize any penalty and interest charges. For taxpayers due a refund, there is no penalty for filing a late return Use IRS Free File. Nearly everyone can use IRS Free File to e-file their federal taxes for free. Taxpayers whose income was $64,000 or less can use free brand-name tax software. Those who made more than $64,000 can use Free File Fillable Forms to e-file. This program uses electronic versions of IRS paper forms. Fillable forms work best for those who are used to doing their own taxes. Taxpayers can file — even if they missed the deadline — using free options […]