Category: News
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Now’s The Time To Review Your Business Expenses
As we approach the end of the year, it’s a good idea to review your business’s expenses for deductibility. At the same time, consider whether your business would benefit from accelerating certain expenses into this year. Be sure to evaluate the impact of the Tax Cuts and Jobs Act (TCJA), which reduces or eliminates many…
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529 Plans Offer Two Tax-Advantaged Education Funding Options
Section 529 plans are a popular education-funding tool because of tax and other benefits. Two types are available: 1) prepaid tuition plans, and 2) savings plans. And one of these plans got even better under the Tax Cuts and Jobs Act (TCJA). Enjoy valuable benefits 529 plans provide a tax-advantaged way to help pay for…
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Tax-Free Fringe Benefits Help Small Businesses And Their Employees
In today’s tightening job market, to attract and retain the best employees, small businesses need to offer not only competitive pay but also appealing fringe benefits. Benefits that are tax-free are especially attractive to employees. Let’s take a quick look at some popular options. Insurance Businesses can provide their employees with various types of insurance…
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Implications Of The New Illinois Wayfair Economic Nexus Law
The Illinois Dept. of Revenue adopted an emergency regulation that explains the requirements for “Wayfair nexus” after the recent U.S. Supreme Court case. IL has enacted nearly identical selling thresholds as those in the Wayfair case. They require retailers with no physical presence in IL to collect and remit use tax beginning 10/1/18 if the…
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How To Reduce The Tax Risk Of Using Independent Contractors
Classifying a worker as an independent contractor frees a business from payroll tax liability and allows it to forgo providing overtime pay, unemployment compensation, and other employee benefits. It also frees the business from responsibility for withholding income taxes and the worker’s share of payroll taxes. For these reasons, the federal government views misclassifying a…
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Back-To-School Time Means A Tax Break For Teachers
When teachers are setting up their classrooms for the new school year, it’s common for them to pay for a portion of their classroom supplies out of pocket. A special tax break allows these educators to deduct some of their expenses. This educator expense deduction is especially important now due to some changes under the…
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Assessing The S Corp
The S corporation business structure offers many advantages, including limited liability for owners and no double taxation (at least at the federal level). But not all businesses are eligible – and, with the new 21% flat income tax rate that now applies to C corporations, S corps may not be quite as attractive as they…
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The State Of Illinois Revises Its LLC Delinquency Penalty.
Effective 1/1/19, a limited liability company that’s delinquent and not in good standing for failing to file its annual report and pay the requisite fee, or failing to appoint and maintain a registered agent in IL, must do the following: Within the specified times, it must cure the default before the 1st day of the…
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Keep An Eye Out For Extenders Legislation
The pieces of tax legislation garnering the most attention these days are the Tax Cuts and Jobs Act (TCJA) signed into law last December and the possible “Tax Reform 2.0” that Congress might pass this fall. But for certain individual taxpayers, what happens with “extenders” legislation is also important. Recent history Back in December of…
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Choosing The Right Accounting Method For Tax Purposes
The Tax Cuts and Jobs Act (TCJA) liberalized the eligibility rules for using the cash method of accounting, making this method — which is simpler than the accrual method — available to more businesses. Now the IRS has provided procedures a small business taxpayer can use to obtain automatic consent to change its method of…