Tax Tips

Vehicle Depreciation: Higher Deduction Allowed

If you acquire and place into service a new or used passenger vehicle in 2018 and use it over 50% for business, you can depreciate up to $18,000 if you elect to claim first-year bonus depreciation. This is a dramatic increase from last year’s amount of $11,160. Even if you choose not to claim the […]

Party’s Over: Deduction for Entertainment Expenses No Longer Allowed

Starting in 2018, deductions for activities that are generally considered to be entertainment, amusement or recreation expenses, or with respect to a facility used in connection with such activities, are disallowed. Forget front row concert tickets or box seats at the MLB game on another company’s dime. Before the new law, if you took a […]

Income Taxes: Check Your Withholding To Avoid Surprises

The U.S. tax system is a pay-as-you-go process. Taxes must be paid as income is earned or received during the year. With the new tax laws, the way tax is calculated for most taxpayers has changed. In addition, any change in your tax situation for the year (e.g., selling stock, changing marital status, working multiple […]

To Incorporate, or Not: Factors to Consider

Now that the corporate tax rate has been reduced to 21% permanently, is it a good time to incorporate your business? There is no one-size-fits-all answer to this question but there are some general guidelines to consider. The primary nontax advantage of incorporating a small business is personal asset protection. Both corporations and LLCs allow […]

Starting a New Business? Keep Track of Your Expenses

There are many costs associated with the start-up of a business that can be deducted once your business opens. To qualify as a start-up cost, the expense must be one that you could deduct if you were already in business. Examples include travel to suppliers, training for your new employees, advertising, utilities and other pre-opening […]

Home Equity Loan Interest: New Law Eliminates Deduction

For many of you, finding the money to pay for a new car, boat or dream vacation was as easy as tapping the equity in your home. Prior to 2018, you could use the equity in your home to make large purchases, pay expenses or consolidate debt and deduct the interest on up to $100,000 […]

Unreimbursed Expenses: Non-Deductible Employee Business Expenses

Are you an employee who incurs unreimbursed expenses? Beginning in 2018 and continuing through 2025, some expenses you could previously claim as itemized deductions won’t be allowed. Here’s a list of the more common items that are no longer deductible: Uniforms and certain work clothes Safety shoes and other safety equipment Tools needed for your […]

Health Insurance for Your Business: A Simple Error May Deny Your Deduction

As a business owner, you most likely provide health benefits for you and your employees. Even if you do not have employees, having a health insurance policy in your business may save you money. As a self-employed taxpayer, you are allowed to deduct from your adjusted gross income, 100% of the cost of the health […]

Exchanging Business Property: New Rules Limit Options

There’s a rule in the tax code that allows you to exchange property you hold for business use or investment for other like-kind property and defer any tax on the gain. This was a popular strategy for business owners who wished to acquire new property without incurring a large tax liability from selling similar property. […]

Saving for College: Qualified Tuition Plans Provide Options

Many of you are already aware that contributing to a qualified tuition plan, commonly referred to as a 529 plan, can be a tax-free way to save for your child’s college education. But did you know that the Tax Cuts and Jobs Act added a provision that also allows you to use a 529 plan […]