A new deduction under the TCJA (Tax Cuts and Jobs Act) gives a break to noncorporate owners of pass-through entities on a portion of their qualified business income. The deduction can reach as much as 20% of qualified business income, though a wage limit does phase in. Generally, this deduction is available to sole proprietorships, partnerships, S corporations, and limited liability companies (LLCs).
Don’t forget to keep track of second quarter deadlines in 2018. Here are some key tax-related deadlines that will affect you as a business or other employer in the coming months:
IRS examiners use Audit Techniques Guides (ATGs) as they get ready for audits — and small business owners might want to, as well. Numerous ATGs focus on specific industries, like construction. Some zero in on issues that come up in … Continued
By this point, small businesses (and their owners) have either filed their 2017 income tax returns or filed for an extension. Now is the time to go over several provisions of the Tax Cut and Jobs Act (TCJA) that might significantly affect taxes for 2018 on out. The changes typically impact tax years beginning after December 31, 2017, and, unless specifically stated, are permanent.
When real estate or other appreciated business assets are sold, you generally must pay tax on the appreciation. Section 1031 offers one way to defer this tax: a “like kind” exchange. Unfortunately, the Tax Cuts and Jobs Act (TCJA) cuts down on the kinds of property that qualify for this favorable tax treatment.
April 15 isn’t the only important deadline to heed when it comes to filing income tax returns. March 15 is the appointed deadline for federal income tax filing for calendar-year partnerships, S corporations and limited liability companies (LLCs) treated as partnerships or S corporations for tax purposes. Calendar-year partnerships now share the S corporations’ long-standing March deadline for the second year, in lieu of its usual April cutoff.
A Simplified Employee Pension (SEP) is the high income, small business owner’s answer to a tax-advantaged retirement plan. Now may be the perfect time for you to put one in place, if you haven’t already. An SEP is easy to set up and has high contribution limits.
The government shutdown has drawn a lot of attention to the challenges Congress faces in trying to find a middle ground between the competing parties vision of the future. The legislation that provided a temporary extension in January also delayed the implementing of three Affordable Care Act taxes.
Bonus depreciation enables a business to more rapidly recoup the costs of depreciable property by taking additional first-year depreciation for qualified assets. The Tax Cuts and Jobs Acts (TCJA), a new law introduced in December, amplifies bonus depreciation.
Working from a home office space has become mainstream but that does not mean you can deduct expenses associated with it. For 2018, even fewer taxpayers will be able to deduct home office expenses.