Categories for Tax News

Jan
15
2019

A refresher on major tax law changes for small-business owners


The dawning of 2019 means the 2018 income tax filing season will soon be upon us. After year end, it’s generally too late to take action to reduce 2018 taxes. Business owners may, therefore, want to shift their focus to assessing whether they’ll likely owe taxes or get a refund when they file their returns this spring, so they can plan accordingly. With the biggest tax law changes in decades (under the TCJA) generally going into effect beginning in 2018,

Jan
13
2019

Estimated payment deadline 1/15/19


Avoid tax time surprises with an estimated payment, advises the IRS. The Tax Cuts and Jobs Act brought many changes, including lower tax rates for most people. While the IRS expects that most taxpayers will still get refunds, a larger-than-usual number of people will owe taxes and possibly penalties. At greatest risk are two-wage-earner households, employees with nonwage sources of income and those with complex tax situations. You may be able to avoid shortfalls by making an estimated payment for 2018 by the 1/15/19 deadline.

Jan
11
2019

Phaseout of tax credit for Tesla plu-in electric vehicles


The IRS announced a phaseout of the tax credit for Tesla plug-in electric vehicles. The reason? Tesla, Inc. has sold more than 200,000 vehicles eligible for the plug-in electric drive motor vehicle credit during the 3rd quarter of 2018. Thus, a phaseout of the credit available for purchasers of new Tesla plug-in electric vehicles is triggered beginning 1/1/19. The tax code provides a credit that begins to phase out for a manufacturer’s vehicles after a certain number have been sold for use or lease in the United States.

Jan
09
2019

2019 standard mileage rates


The IRS announced the 2019 standard mileage rates. The optional mileage allowance for owned or leased vehicles (including autos, vans or pickups) will rise 3.5 cents to 58 cents per mile for business travel. Employers can also use the rate to reimburse employees who supply their own autos for business use and to value personal use of certain low-cost employer-provided vehicles. The rates for medical purposes will rise 2 cents to 20 cents per mile and the rate for driving in service of charitable organizations will remain 14 cents per mile.

Jan
07
2019

elimination of the deduction for transportation fringe benefits


What’s the tax impact of the Tax Cuts and Jobs Act’s elimination of the deduction for transportation fringe benefits? The IRS has issued interim guidance regarding the treatment of qualified transportation fringe benefit expenses, paid or incurred after 12/31/17. The new rules assist employers in determining the amount of parking expense that’s no longer tax deductible. They also help tax-exempt organizations determine how these nondeductible parking expenses create or increase unrelated business taxable income.

Jan
05
2019

IRSNews


The IRS has launched an “IRSNews” account on Instagram. According to the agency, more than 70% of adults between ages 18 and 24 are active on the social media site. “The IRS plans to use Instagram to better serve this segment of the population, sharing content on tax topics that affect all taxpayers,” said IRS Commissioner Charles Rettig. “This platform will help make people aware of important options they have during the upcoming filing season as well as other tax information they might not know.” To access IRSNews,

Jan
01
2019

Sole Proprietorship newly released instructions for Schedule C


If you’re the owner of a sole proprietorship, listen up! Newly released instructions for Schedule C, Form 1040, reflect many of the key tax changes that apply to sole proprietors for tax year 2018. These changes, enacted by the Tax Cuts and Jobs Act, include accounting method liberalizations, limitations on deductions for business interest and business losses, a new deduction for qualified business income, and restrictions on deductions for business meals and entertainment expenses.

Dec
30
2018

It’s not too late: You can still set up a retirement plan for 2018





If most of your money is tied up in your business, retirement can be a challenge. So if you haven’t already set up a tax-advantaged retirement plan, consider doing so this year. There’s still time to set one up and make contributions that will be deductible on your 2018 tax return. And funds can grow tax deferred. If you have employees, they generally must be allowed to participate in the plan,

Dec
29
2018

Buy business assets before year end to reduce your 2018 tax liability





Investing in business assets is a traditional and powerful year-end tax planning strategy, and it might make even more sense in 2018. Sec. 179 expensing and bonus depreciation both allow an immediate deduction for the cost of eligible asset purchases, rather than depreciating them over a number of years. The TCJA increases potential deductions under these breaks and expands the assets that are eligible. To qualify, you must place assets in service by the end of the year.