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1099-MISC Reporting Requirements for Small Businesses
It's 2020, and with it your business may be required to comply with rules to report amounts paid to independent contractors, vendors and others. 1099-MISC reporting requirements may mean you have to send 1099-MISC forms to those whom you pay nonemployee compensation, as well as file copies with the IRS. This task can be time [...]
2020 Q1 Tax Calendar for Businesses
Here's a 2020 Q1 tax calendar with some of the key tax-related deadlines affecting businesses and other employers. Keep in mind that this list isn’t all-inclusive, so there may be additional deadlines that apply to you. Contact me to ensure you’re meeting all applicable deadlines and to learn more about the filing requirements. January 31 [...]
Setting Up a Health Savings Account
Given the escalating cost of employee health care benefits, your business may be interested in providing some of these benefits through an employer-sponsored Health Savings Account (HSA). For eligible individuals, setting up a Health Savings Account offers a tax-advantaged way to set aside funds (or have their employers do so) to meet future medical needs. [...]
How to Avoid Trust Fund Recovery Penalties
One of the most laborious tasks for small businesses is managing payroll. But it’s critical that you not only withhold the right amount of taxes from employees’ paychecks but also that you pay them over to the federal government on time. If you willfully fail to do so, you could personally be hit with Trust Fund [...]
New Year’s Eve Can Get Expensive
Most Americans spend less than $200 on New Year's Eve. However, parents of young children usually pay more as do revelers in pricey cities. (This is Blog Post #679)
Qualified IRA Charitable Distributions Alternative to Taxable RMDs
Are you charitably minded and have a significant amount of money in an IRA? If you’re age 70½ or older, and don’t need the money from required minimum distributions, you may benefit by giving these amounts to charity. They're called Qualified IRA Charitable Distributions (QCDs). IRA distribution basics A popular way to transfer IRA assets [...]
Should Homeowners Prepay 2020 Property Taxes?
(This is Blog Post #677)
Last Chance to Cut Your 2019 Taxes
Don’t let the holiday rush keep you from taking some important steps to cut your 2019 taxes. You still have time to execute a few strategies, including: Buying Assets Thinking about purchasing new or used heavy vehicles, heavy equipment, machinery or office equipment in the new year? Buy it and place it in service by [...]
Using Your 401k Plan to Save
You can reduce taxes and save for retirement by contributing to a tax-advantaged retirement plan. If your employer offers a 401k or Roth 401k plan, contributing to it is a taxwise way to build a nest egg. If you’re not already contributing the maximum allowed, consider increasing your contribution rate between now and year end. [...]
Year End Tax Saving Tools for Your Business
At this time of year, many business owners ask if there’s any year end tax saving tools they can implement. Under current tax law, there are two valuable depreciation-related tax breaks that may help your business reduce its 2019 tax liability. To benefit from these deductions, you must buy eligible machinery, equipment, furniture or other [...]
Protecting Against International Trade Fraud
The U.S. economy depends on import and export markets to run as designed. After all, revenue from trade tariffs and duties contribute $30 billion annually to federal government coffers. Unfortunately, fraud regularly throws a wrench in the works of global trade, and individual businesses suffer. Your company might, for example, lose money if a seller [...]
How the Net Investment Income Tax Can Affect Your Estate Plan
The Tax Cuts and Jobs Act (TCJA) reduced individual income tax rates, but it left the 3.8% net investment income tax (NIIT) in place. It’s important to address the NIIT in your estate plan, because it can erode your earnings from interest, dividends, capital gains and other investments, leaving less for your heirs. Net Investment [...]
C to S Corporation Conversion
The right entity choice can make a difference in the tax bill you owe for your business. Although S corporations can provide substantial tax advantages over C corporations in some circumstances, there are plenty of potentially expensive tax problems that you should assess before making the decision to initiate a C to S corporation conversion. [...]
How to Have More Willpower
As posted to the FightMediocrity YouTube Channel on 6/30/15 (Run time: 4 min, 39 sec) In this thought provoking clip, FightMediocrity provides a quick review and recommendation of "The Willpower Instinct" by Kelly McGonigal. The book reports that 3 scientifically proven ways to have more willpower are: Get enough sleep Meditate Do important things first [...]
How to Fix a Broken Trust
There are good reasons why estate planning advisors recommend you revisit and, if necessary, revise your estate plan periodically: changing circumstances, including family situations and new tax laws. While it’s relatively simple to change a beneficiary, what if an irrevocable trust no longer serves your purposes? Depending on applicable state law, you may have options [...]
Disclaimer
This blog is designed to provide competent and reliable information regarding the subject matter covered. However, it is being provided with the understanding that the blogmaster is not engaged in rendering investment advice. Laws and practices often vary from state to state and if investment assistance is required, the services of a licensed investment professional should be sought. The blogmaster resolutely encourages the reader/viewer to do their own research and due diligence before acting on any information contained herein. As such, Roger Rossmeisl specifically disclaims any liability that is incurred from the use or application of the contents of this blog. It should also be noted that the views contained in this blog are not necessarily representative of the opinions/beliefs of the other owners, management and/or employees of Kho & Patel CPAs.
