Failing to file tax returns on time or paying taxes late can result in steep penalties and interest. If you can’t finish your tax return on time – file for an extension – because penalties for not filing are much higher than penalties assessed for failing to pay on time. Penalties for failing to file
You may have heard about the high failure rate of small businesses. Bloomberg estimates the true failure rate is as high as 80% within five year. While statistics vary the bottom line is that more businesses fail within the first two years than succeed. While the collapse may seem sudden and unavoidable in most cases
Many taxpayers conduct activities related to a personal passion, such as raising animals, painting, cooking, or woodworking that can generate large losses. How these losses are deducted has always been dependent on properly classifying the activity as either a hobby or a business. The Tax Cuts and Jobs Act of 2017 (TCJA) has made additional
Every business owner needs to understand what’s happening with their business. Your top priority is probably your business’s bottom line, but do you understand what affects that number? And more importantly, do you understand what steps you can take to improve that number? Creating a budget can help business owners find and correct errors in
A 1031 Exchange (also called a Starker Exchange or Like-Kind Exchange) allows investors reinvest gain into a similar property and avoid tax now. In addition to saving on taxes, a 1031 Exchange also allows investors to shift the focus of their investing without tax liability. As an example, you can shift investments to markets, buy
Starting in 2016, the IRS implemented new filing requirements for most information returns, including Forms 1098, 1099, and W-2/W-3. They also increased penalties related to these forms and made penalties subject to inflationary adjustments. Penalties are based on the filing date of correct information and date that forms are furnished to the payee. Businesses can
Small business owners typically spend more than two weeks each year getting documents together so they can file their tax returns. Preparing now can help avoid stress later and could save you lots of money! Although there are many more exciting options this time of year, filing accurate tax returns is non-negotiable. If you own
The form of business entity you choose will have legal and tax implications and affect your ability to grow, obtain outside investment, or even sell the business down the road. Entity selection will affect your personal liability, level of accounting and record keeping required and whether you take payroll or are subject to self-employment taxes.
Congress passed the Tax Cuts and Jobs Act Bill (TCJA) in December 2017. Implementation of some key provisions is still being finalized, but the following are major changes that will affect tax returns you file for 2018 through 2025: Changes to Tax Brackets Most taxpayers will benefit from a decreased tax bracket beginning in 2018.
If you’ve never considered tax planning before, this might be the year to reconsider. At a minimum the IRS recommends that every W-2 wage earner should do a “paycheck checkup” and review their withholding. In response to the Tax Cuts & Jobs Act (TCJA), withholding tables changed earlier this year to give employees more money