TAX STRATEGIES, ADVICE, & INSIGHTS

Will Leasing Equipment or Buying It Be More Tax Efficient for Your Business?

Posted by L&H CPAs on Apr 18, 2019 9:00:00 AM

Recent changes to federal tax law and accounting rules could affect whether you decide to lease or buy equipment or other fixed assets. Although there’s no universal “right” choice, many businesses that formerly leased assets are now deciding to buy them .

 

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Tags: Business Owners & Entrepreneurs

When Are LLC Members Subject to Self-Employment Tax?

Posted by L&H CPAs on Apr 9, 2019 9:00:00 AM

Limited liability company (LLC) members commonly claim that their distributive shares of LLC income — after deducting compensation for services in the form of guaranteed payments — aren’t subject to self-employment (SE) tax. But the IRS has been cracking down on LLC members it claims have underreported SE income, with some success in court. 

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Tags: Business Owners & Entrepreneurs

Could Your Business Benefit from the Tax Credit for Family and Medical Leave?

Posted by L&H CPAs on Apr 3, 2019 9:00:00 AM

The Tax Cuts and Jobs Act created a new federal tax credit for employers that provide qualified paid family and medical leave to their employees. It’s subject to numerous rules and restrictions and the credit is only available for two tax years — those beginning between January 1, 2018, and December 31, 2019. However, it may be worthwhile for some businesses.

 

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Tags: Business Owners & Entrepreneurs

There’s Still Time for Small Business Owners to Set up a Sep Retirement Plan for Last Year

Posted by L&H CPAs on Mar 26, 2019 9:00:00 AM

If you own a business and don’t have a tax-advantaged retirement plan, it’s not too late to establish one and reduce your 2018 tax bill. A Simplified Employee Pension (SEP) can still be set up for 2018, and you can make contributions to it that you can deduct on your 2018 income tax return.

 

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Tags: Business Owners & Entrepreneurs

Beware the Ides of March — if you own a pass-through entity

Posted by L&H CPAs on Mar 19, 2019 9:00:00 AM

Shakespeare’s words don’t apply just to Julius Caesar; they also apply to calendar-year partnerships, S corporations and limited liability companies (LLCs) treated as partnerships or S corporations for tax purposes. Why? The Ides of March, more commonly known as March 15, is the federal income tax filing deadline for these “pass-through” entities.

 

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Tags: Business Owners & Entrepreneurs

Higher Mileage Rate May Mean Larger Tax Deductions for Business Miles in 2019

Posted by L&H CPAs on Mar 12, 2019 9:00:00 AM

This year, the optional standard mileage rate used to calculate the deductible costs of operating an automobile for business increased by 3.5 cents, to the highest level since 2008. As a result, you might be able to claim a larger deduction for vehicle-related expense for 2019 than you can for 2018.

 

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Tags: Business Owners & Entrepreneurs

The Home Office Deduction: Actual Expenses vs. the Simplified Method

Posted by L&H CPAs on Feb 27, 2019 9:00:00 AM

If you run your business from your home or perform certain functions at home that are related to your business, you might be able to claim a home office deduction against your business income on your 2018 income tax return. There are now two methods for claiming this deduction: the actual expenses method and the simplified method.

 

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Tags: Business Owners & Entrepreneurs

A Refresher on Major Tax Law Changes for Small-Business Owners

Posted by L&H CPAs on Feb 12, 2019 8:55:38 AM

The dawning of 2019 means the 2018 income tax filing season will soon be upon us. After year end, it’s generally too late to take action to reduce 2018 taxes. Business owners may, therefore, want to shift their focus to assessing whether they’ll likely owe taxes or get a refund when they file their returns this spring, so they can plan accordingly.

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Tags: Business Owners & Entrepreneurs

Business Real Estate Depreciation: Before You File 2018 Return

Posted by L&H CPAs on Feb 7, 2019 9:19:21 AM

Commercial buildings and improvements generally are depreciated over 39 years, which essentially means you can deduct a portion of the cost every year over the depreciation period. (Land isn’t depreciable.) But special tax breaks that allow deductions to be taken more quickly are available for certain real estate investments

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Tags: Business Owners & Entrepreneurs

Should You Switch Your Business to C Corp Status?

Posted by L&H CPAs on Jan 30, 2019 1:07:19 PM

Thanks to the Tax Cuts and Jobs Act (TCJA), the federal income tax rate on C corporations is now a flat 21%, for tax years beginning in 2018 and beyond. Under prior law, C corporations were subject to graduated tax rates ranging from 15% to 35%. This is a permanent change, as long as Congress doesn't reverse it.

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Tags: Business Owners & Entrepreneurs

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