What Should You Do If Your K-1 Does Not Include The Qualified Business Deduction?
Tax reform’s Section 199A deduction often confuses small-business owners and tax professionals alike. It’s quite possible you’ll get a Schedule K-1 from a business that omits the information you need to calculate your deduction. What do you do? You have a big problem. Without a properly completed Schedule K-1, your Section 199A deduction is a big fat $0. Best option: [...]
How the New Tax Laws Affect Loaning Your Company Money
Making loans to your corporation became more hazardous 33 years ago with the Tax Reform Act of 1986. But the new Tax Cuts and Jobs Act tax reform made things worse for tax years 2018 through 2025. If you operate your business as a corporation, you need to know how the rules apply when you loan money to your corporation. Imagine [...]
Reimburse Your Employees for Education and Training
As a small-business owner, you probably incur work-related education expenses from time to time. You may even decide to pursue an advanced degree, such as a Master of Business Administration (MBA). You likely want your employees to be on a path of continuous improvement. There’s much to know about how such business deductions work for both you and your employees. [...]
New Tax Cut and Jobs Act (TCJA)
The Tax Cuts and Jobs Act (TCJA) tax reform added an amazing limit on larger business losses that can attack you where it hurts—right in your cash flow. And this new law works in some unusual ways that can tax you even when you have no real income for the year. When you know how this ugly new rule works, [...]
Consider Purchasing Vehicle for Your Business
If your business is in need of a new car, or replace an old one, here are some ideas for you to consider Buy a New or Used SUV, Crossover Vehicle, or Van with a GVWR Greater than 6,000 Pounds Let’s say that on or before December 31, 2018, you or your corporation buys and places in service a new [...]
Benefits of Entertainment Facilities
Imagine this: your Schedule C business buys a home at the beach, uses it solely as an entertainment facility for business, pays off the mortgage, and deducts all the expenses. Next, say, 10 years later, without any tax consequence to you, you start using the beach home as your own. Is this possible? Yes. Are there some rules on this? [...]