estate planning

Estate Planning: What You Need To Know About Step-Up in Basis

May 18, 2023

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…

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Independent Contractors

How To Classify Independent Contractors

May 16, 2023

Many 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…

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tax benefits

4 Tax Benefits to Hiring Your Child This Summer

May 11, 2023

Summer 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.…

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corporate tax

What You Need To Know About a Net Operating Loss for Your Business

May 9, 2023

Losses 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…

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management letter

Business Owners: 4 Tips To Ensure Reasonable Compensation

May 4, 2023

If 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…

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rehabilitation tax credit

How To Claim the Rehabilitation Tax Credit When Adding to Your Business Space

April 18, 2023

If 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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