Small Business Tax
Section 179 vehicles should be a key part of your small business tax deduction strategies. Can Section 179 property fit in with your business tax strategies?
Let Business Management Daily help you get each and every rental property depreciation credit and business tax deduction you’re entitled to.
A Roth IRA can provide tax-free payouts to retirement-savers in the future. But you may not be able to make annual contributions to a Roth due to the tax law limits. Plus, if you convert funds in a traditional IRA to a Roth IRA, you’ll have to pay a hefty tax price. Strategy: Go in the “back door” instead.
Suppose your adult child needs a helping hand to launch a new business or buy a home. Give the child a low- or even no- interest loan. As long as you stay within the tax law boundaries, your family will have no tax worries. However, if you’re not careful, you could be blindsided by an unexpected tax bill.
Don’t tell your CPA anything you wouldn’t want the IRS to know. A 1998 law effectively authorizes a “CPA-client privilege,” but the privilege is hardly bullet-proof. In fact, it’s riddled with exceptions.
The tax law favors real estate investors who rise to “real estate professionals.” Generally, they aren’t limited by the passive activity rules for other investors. Strategy: Elect to treat multiple activities as one real estate activity.
The IRS is increasing efforts to catch identity theft crooks. It has launched more than 200 investigations into ID theft and other schemes this tax filing season.
The federal government’s ability to regulate tax return preparers has been successfully challenged in court. The next move is up to the feds. But that doesn’t hinder the rights of individual states to initiate their own registration programs.
Normally, the federal government requires employers to pay FUTA tax at a 6.0% rate on the first $7,000 of annual wages for each covered employee. This 6.0% tax may be offset by credits of up to 5.4%, so the net FUTA tax rate is usually only 0.6%. However, if a state borrows funds from the federal government to pay unemployment insurance (UI) benefits and defaults on repayment, the UI tax credits for employers in that state are reduced.
Have you outsourced payroll duties to a third party provider? It can save time and money. Alert: Be aware that outsourcing doesn’t relieve you of your tax obligations. The IRS could still come after your company.
Q. Can I increase Coverdell contributions for my child by having my parents make separate contributions?
On April 9, 2014, the House Committee on Small Business held a hearing titled “The Biggest Tax Problems for Small Businesses.” Chairman Sam Graves, R-Mo., pointed out several issues hampering the small business community, including higher taxes, new concerns like the Medicare surtaxes, increased complexity, uncertainty for the future and the lengthy time required to resolve issues with the IRS.