Tax
A common question for people estate planning or inheriting property is: For tax purposes, what’s the “cost” (or “basis”) an individual gets in property that he or she inherits from another? This is an important area and is too often overlooked when families start to put their affairs in order. Overview Under the fair market…
Read MoreMany businesses use independent contractors to help keep their costs down, especially in these times of staff shortages and inflationary pressures. If you’re among them, be careful that these workers are properly classified for federal tax purposes. If the IRS reclassifies them as employees, it can be an expensive mistake. The question of whether a…
Read MoreSummer is around the corner so you may be thinking about hiring young people at your small business. At the same time, you may have children looking to earn extra spending money. You can save family income and payroll taxes by putting your child on the payroll. It’s a win-win! Here are four tax benefits.…
Read MoreLosses can happen whether you’re operating a new company or an established business. The federal tax code may help soften the blow by allowing businesses to apply losses to offset taxable income in future years, subject to certain limitations. Here are the rules for businesses with a net operating loss. Qualifying for a net operating…
Read MoreIf you’re the owner of an incorporated business, you know there’s a tax advantage to taking money out of a C corporation as reasonable compensation rather than as dividends. The reason is that a corporation can deduct the salaries and bonuses that it pays executives, but not dividend payments. Therefore, if funds are paid as…
Read MoreIf your business occupies substantial space and needs to increase or move from that space in the future, you should keep the rehabilitation tax credit in mind. This is especially true if you favor historic buildings. The credit is equal to 20% of the qualified rehabilitation expenditures (QREs) for a qualified rehabilitated building that’s also…
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