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When holiday gifts and parties are deductible or taxable

The holiday season is a great time for businesses to show their appreciation for employees and customers by giving them gifts or hosting holiday parties. Before you begin shopping or sending out invitations, though, it’s a good idea to find out whether the expense is tax deductible and whether it’s taxable to the recipient. Here’s…

Stock Market Drop and Traditional IRAs

2018- 11/14 Does a stock market drop have an immediate tax effect on the finances of people with traditional IRAs who aren’t yet taking required minimum distributions (RMDs)? No, because losses and gains aren’t recognized in these accounts. However, there may be tax implications for taxpayers already taking RMDs from traditional IRAs. They can’t reduce…

2019 Standard Deduction

2018 – 11/16 The Tax Cuts and Jobs Act suspended personal exemptions for 2018–2025, but roughly doubled inflation-adjusted standard deduction amounts. For 2019, the amounts are $24,400 for married joint filers, $12,200 for single filers, $18,350 for heads of households and $12,200 for married couples filing separately. For an individual who can be claimed as…

Family Tax Credits

2018 – 11/19 The Tax Cuts and Jobs Act revised family tax credits for 2018. To help taxpayers prepare for the 2019 filing season, the IRS recently issued a reminder about the changes. The law doubled the maximum child tax credit to $2,000 and raised the income limits to claim the credit. A child must…

Tax reform expands availability of cash accounting

Under the Tax Cuts and Jobs Act (TCJA), many more businesses are now eligible to use the cash method of accounting for federal tax purposes. The cash method offers greater tax-planning flexibility, allowing some businesses to defer taxable income. Newly eligible businesses should determine whether the cash method would be advantageous and, if so, consider…

3 ways to get more from your marketing dollars

A strong economy leads some company owners to cut back on marketing. Why spend the money if business is so good? Others see it differently — a robust economy means more sales opportunities, so pouring dollars into marketing is the way to go. The right approach for your company depends on many factors, but one…

IRA Distribution

2018 – 11/06 An IRS private letter ruling forecasts a good tax outcome for a widow. The taxpayer, as the decedent’s spouse, would be treated as having acquired the IRA in question directly from the decedent, not from the trust that was the IRA’s primary beneficiary, the IRS stated. And she was eligible to roll…

Smooth processing of 2018 tax return

2018 – 11/08 The IRS has launched a campaign to advise taxpayers about what preparations they can make to ensure the smooth processing of their 2018 tax returns. As part of the campaign, the tax agency issued Publication 5307, “Tax Reform Basics for Individuals and Families.” It focuses on several topics, including the gathering of…

Some tax ID numbers expire soon

2018 – 11/18 Some tax ID numbers expire soon. The IRS issues Individual Taxpayer Identification Numbers (ITINs) to those required to file or report information to the IRS, but who don’t qualify for Social Security numbers. Some who use an ITIN must reapply before the end of 2018 because their number will expire and will…

Taking the hybrid approach to cloud computing

For several years now, cloud computing has been touted as the perfect way for companies large and small to meet their software and data storage needs. But, when it comes to choosing and deploying a solution, one size doesn’t fit all. Many businesses have found it difficult to fully commit to the cloud for a…

Tax Cuts & Jobs Act FAQ

2018 – 10/30 Do you have questions about your 2018 tax return? The IRS has launched a webpage titled “Tax Reform,” with links to detailed information related to the Tax Cuts and Jobs Act. The page has three sections, the first of which addresses individual taxpayers, on topics such as withholding; tax credits and deductions;…

Business Changes: TCJA

2018 – 11/01 Attention businesses: As we get closer to 2018 federal income tax filing, the IRS is highlighting business changes in the Tax Cuts and Jobs Act (TCJA). The agency has posted a useful comparison on its website listing 19 tax changes. The list is divided into three columns that cover the tax provision,…

New Retirement Plan Limits

2018 – 11/02 There are new limits for retirement plans. The IRS has announced the 2019 cost-of-living adjustments for defined contribution plans and defined benefit plans. The maximum you can contribute to a 401(k) plan will rise to $19,000, from $18,500, plus a catch-up contribution of $6,000 for taxpayers age 50 and up. The amount…

Change management doesn’t have to be scary

Business owners are constantly bombarded with terminology and buzzwords. Although you probably feel a need to keep up with the latest trends, you also may find that many of these ideas induce more anxiety than relief. One example is change management. This term is used to describe the philosophies and processes an organization uses to…

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