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Adam’s Tax Accounting Service Blog

Note: Tax advice, articles, and content contained on this site are intended for informational and educational purposes only. They are not a substitute for professional advice. Tax matters are can be extremely complex and vary greatly for each individual or company. Please click here to read our complete disclosure and disclaimer for the information presented on this site.

Will Congress Revive Expired Tax Breaks?

Posted by on Aug 17, 2017 in Blog, General, Management, Tax Tips | 0 comments

Will Congress Revive Expired Tax Breaks?

Most of the talk about possible tax legislation this year has focused on either wide-sweeping tax reform or taxes that are part of the Affordable Care Act. But there are a few other potential tax developments for individuals to keep an eye on. Back in December of 2015, Congress passed the PATH Act, which made a multitude of tax breaks permanent. However, there were a few valuable breaks for individuals that it extended only through 2016. The question now is whether or not Congress will extend them for 2017. The education break One tax break...

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Material Participation Key to Deducting LLC and LLP Losses

Posted by on Aug 14, 2017 in Blog, General, Management, Tax Tips | 0 comments

Material Participation Key to Deducting LLC and LLP Losses

If your business is a limited liability company (LLC) or a limited liability partnership (LLP), you know these structures offer liability protection and flexibility as well as tax advantages. But did you know they once also had a significant tax disadvantage: The IRS used to treat all LLC and LLP owners as limited partners for purposes of the passive activity loss (PAL) rules, which can result in negative tax consequences. Fortunately, today LLC and LLP owners can be treated as general partners, which means they can meet any one of seven...

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A Refresher on the ACA’s Tax Penalty on Individuals Without Health Insurance

Posted by on Aug 10, 2017 in Blog, General, Management, Tax Tips | 0 comments

A Refresher on the ACA’s Tax Penalty on Individuals Without Health Insurance

Now that Affordable Care Act (ACA) repeal and replacement efforts appear to have collapsed, at least for the time being, it’s a good time for a refresher on the tax penalty the ACA imposes on individuals who fail to have “minimum essential” health insurance coverage for any month of the year. This requirement is commonly called the “individual mandate.” Penalty exemptions First, let’s take a quick look at the available exceptions to the penalty. Taxpayers may be exempt if they fit into one of these categories for 2017: Their household income...

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6 Ways to Control Your Unemployment Tax Costs

Posted by on Aug 7, 2017 in Blog, General, Management, Tax Tips | 0 comments

6 Ways to Control Your Unemployment Tax Costs

Unemployment tax rates for employers vary from state to state. Your unemployment tax bill may be influenced by several factors. These could include the number of former employees who’ve filed unemployment claims with the state, your current number of employees, and your business’s age. Typically, the more claims made against a business, the higher the unemployment tax bill. Here are six ways to control your unemployment tax costs: 1. Buy down your unemployment tax rate if your state permits it. Some states allow employers to annually buy down...

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3 Midyear Tax Planning Strategies for Individuals

Posted by on Aug 3, 2017 in Blog, General, Management, Tax Tips | 0 comments

3 Midyear Tax Planning Strategies for Individuals

In the quest to reduce your tax bill, year-end planning can only go so far because tax-saving strategies take time to implement. Here are three strategies that can be more effective if you begin executing them midyear: 1. Consider your bracket The top income tax rate is 39.6% for taxpayers with taxable income over $418,400 (singles), $444,550 (heads of households) and $470,700 (married filing jointly; half that amount for married filing separately). If you expect this year’s income to be near the threshold, consider strategies for reducing...

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ESOPs Offer Businesses Tax and Other Benefits

Posted by on Jul 31, 2017 in Blog, General, Management, Tax Tips | 0 comments

ESOPs Offer Businesses Tax and Other Benefits

With an employee stock ownership plan (ESOP), employee participants take part ownership of the business through a retirement savings arrangement. With this type of plan the business and its existing owner(s) can benefit from some potential tax breaks, an extra-motivated workforce, and potentially a smoother path for succession planning. How ESOPs work To implement an ESOP, you establish a trust fund and either: Contribute shares of stock or money to buy the stock (an “unleveraged” ESOP), or Borrow funds to initially buy the stock, and then...

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Nonqualified Stock Options Demand Tax Planning Attention

Posted by on Jul 27, 2017 in Blog, General, Management, Tax Tips | 0 comments

Nonqualified Stock Options Demand Tax Planning Attention

Your compensation may take several forms, including salary, fringe benefits and bonuses. If you work for a corporation, you might also receive stock-based compensation, such as stock options. These come in two varieties: nonqualified (NQSOs) and incentive (ISOs). With both NQSOs and ISOs, if the stock appreciates beyond your exercise price, you can buy shares at a price below what they’re trading for. However, the tax consequences of stock-based compensation can be complex. So smart tax planning is critical. Let’s take a closer look at the...

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3 Midyear Tax Planning Strategies for Business

Posted by on Jul 24, 2017 in Blog, General, Management, Tax Tips | 0 comments

3 Midyear Tax Planning Strategies for Business

Tax reform has been a major topic of discussion in Washington, but it’s still not clear exactly what this legislation will include and if it will be signed into law this year. However, the last major tax legislation that was signed into law (back in December of 2015) still has a significant impact on tax planning for businesses. Let’s look at three midyear tax strategies inspired by the Protecting Americans from Tax Hikes (PATH) Act: 1. Buying equipment. The PATH Act preserved both the generous limits for the Section 179 expensing election...

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Own a Vacation Home? Adjusting Rental vs. Personal Use Might Save Taxes

Posted by on Jul 24, 2017 in Blog, General, Management, Tax Tips | 0 comments

Own a Vacation Home? Adjusting Rental vs. Personal Use Might Save Taxes

If you own a vacation home that you both rent out and use personally, it’s a good time to review the potential tax consequences: If you rent it out for less than 15 days: You don’t have to report the income. But expenses associated with the rental (such as advertising and cleaning) won’t be deductible. If you rent it out for 15 days or more: You must report the income. The expenses you can deduct depend on how the home is classified for tax purposes, based on the amount of personal vs. rental use: Rental property. If you (or your immediate...

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Keep Real Estate Separate From Your Business’s Corporate Assets to Save Tax

Posted by on Jul 20, 2017 in Blog, General, Management, Tax Tips | 0 comments

Keep Real Estate Separate From Your Business’s Corporate Assets to Save Tax

It’s common for a business to own not only typical business assets, such as equipment, inventory and furnishings, but also the building where the business operates — and possibly other real estate as well. However, there can be negative consequences when a business’s real estate is included in its general corporate assets. Owners can save tax and enjoy other benefits by holding real estate in a separate entity. Capturing tax savings Many businesses operate as C corporations so they can buy and hold real estate just as they do equipment,...

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