2019 – 01/28 – Depreciation-related breaks on business real estate: What you need to know when you file your 2018 return
Commercial buildings and improvements generally are depreciated over 39 years, which essentially means you can deduct a portion of the cost every year over the depreciation period. (Land isn’t depreciable.) But special tax breaks that allow deductions to be taken…
Read more2019 – 01/22 – There’s still time to get substantiation for 2018 donations
To claim an itemized deduction for a donation of more than $250, generally you need a contemporaneous written acknowledgment from the charity. “Contemporaneous” means the earlier of 1) the date you file your income tax return, or 2) the extended…
Read more2019 – 01/15 – What will your marginal income tax rate be?
Under the TCJA, unmarried taxpayers could see their taxes go up due to their filing status. To further eliminate the marriage “penalty,” the TCJA changed some of the middle tax brackets, negatively affecting some unmarried filers. For example, single and…
Read more2019 – 01/18 – M&A due diligence: Don’t accept financial statements at face value
Let the buyer beware: Do-it-yourself acquisitions can lead to costly mistakes! Before acquiring another business, you need to conduct comprehensive due diligence. This can be a daunting task, especially if it’s your first time negotiating a deal. In addition to…
Read more2019 – 01/22 – Many tax-related limits affecting businesses increase for 2019
A variety of tax-related limits affecting businesses are annually indexed for inflation, and many have increased for 2019. For example, the Section 179 expensing limit has gone up to $1.02 million from $1 million. Also up are the income-based phase-ins…
Read more2019 – 01/08 – 2 major tax law changes for individuals in 2019
Most TCJA provisions went into effect in 2018 and apply through 2025 or are permanent, but two major changes affect individuals beginning in 2019: 1) While the TCJA reduced the medical expense deduction threshold from 10% of adjusted gross income…
Read more2019 – 01/14 – Higher mileage rate may mean larger tax deductions for business miles in 2019
A higher IRS mileage rate means larger tax deductions for business miles in 2019. The optional standard mileage rate used to calculate the deductible costs of operating an auto for business has increased by 3.5 cents, to 58 cents per…
Read more2019 – 01/11 – How do profits and cash flow differ?
Cash is king. Unfortunately, the accounting concept of “profits” may not be the best metric for gauging whether a business is on top of its game. There are many reasons profits and cash flow might differ, including changes in working…
Read more2019 – 01/08 – 2 major tax law changes for individuals in 2019
Changes to the medical expense deduction and the tax treatment of alimony go into effect in 2019. Find out the details.
Read more2019 – 01/07 – Is there still time to pay 2018 bonuses and deduct them on your 2018 return?
There aren’t too many things businesses can do after a year ends to reduce tax liability for that year. But you might be able to pay employee bonuses for 2018 in 2019 and still deduct them on your 2018 tax…
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