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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.

New HRA Offers Small Employers an Attractive, Tax-Advantaged Health Care Option

Posted by on Jan 19, 2017 in Blog, General, Management, Tax Tips | Comments Off on New HRA Offers Small Employers an Attractive, Tax-Advantaged Health Care Option

New HRA Offers Small Employers an Attractive, Tax-Advantaged Health Care Option

In December, Congress passed the 21st Century Cures Act. This long and complex bill covers a broad range of health care topics. Of particular interest to some businesses should be the Health Reimbursement Arrangement (HRA) provision. With this provision, qualified small employers can now use HRAs to reimburse employees who purchase individual insurance coverage, rather than providing employees with costly group health plans. The need for HRA relief Employers can use HRAs to reimburse their workers’ medical expenses, including health insurance...

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2017 Q1 Tax Calendar: Key Deadlines for Businesses and Other Employers

Posted by on Jan 5, 2017 in Blog, General, Management, Tax Tips | Comments Off on 2017 Q1 Tax Calendar: Key Deadlines for Businesses and Other Employers

2017 Q1 Tax Calendar:  Key Deadlines for Businesses and Other Employers

Here are some of the key tax-related deadlines affecting businesses and other employers during the first quarter of 2017. Keep in mind that this list isn’t all-inclusive, so there may be additional deadlines that apply to you. Contact us to ensure you’re meeting all applicable deadlines and to learn more about the filing requirements. January 31 File 2016 Forms W-2, “Wage and Tax Statement,” with the Social Security Administration and provide copies to your employees. File 2016 Forms 1099-MISC, “Miscellaneous Income,” reporting nonemployee...

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How Entity Type Affects Tax Planning for Owner-Employees

Posted by on Jan 5, 2017 in Blog, General, Management, Tax Tips | Comments Off on How Entity Type Affects Tax Planning for Owner-Employees

How Entity Type Affects Tax Planning for Owner-Employees

Come tax time, owner-employees face a variety of tax planning challenges, depending on whether their business is structured as a partnership, limited liability company (LLC) or corporation. When you’re thinking about your 2016 filing or planning for 2017, it’s important to be aware of the challenges that apply to your particular situation. Partnerships and LLCs If you’re a partner in a partnership or a member of an LLC that has elected to be disregarded or treated as a partnership, the entity’s income flows through to you (as well as its...

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Few Changes to Retirement Plan Contribution Limits for 2017

Posted by on Jan 2, 2017 in Blog, General, Management, Tax Tips | Comments Off on Few Changes to Retirement Plan Contribution Limits for 2017

Few Changes to Retirement Plan Contribution Limits for 2017

Retirement plan contribution limits are indexed for inflation, but with inflation remaining low most of the limits remain unchanged for 2017. The only limit that has increased from the 2016 level is for contributions to defined contribution plans, which has gone up by $1,000. Type of limit 2017 limit Elective deferrals to 401(k), 403(b), 457(b)(2) and 457(c)(1) plans $18,000 Contributions to defined contribution plans $54,000 Contributions to SIMPLEs $12,500 Contributions to IRAs $5,500 Catch-up contributions to 401(k), 403(b), 457(b)(2) and...

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Want to Save for Education? Make 2016 ESA Contributions by December 31

Posted by on Dec 29, 2016 in Blog, General, Management, Tax Tips | Comments Off on Want to Save for Education? Make 2016 ESA Contributions by December 31

Want to Save for Education? Make 2016 ESA Contributions by December 31

There are many ways to save for your child’s or grandchild’s education. But one has annual contribution limits, and if you don’t make a 2016 contribution by December 31, the opportunity will be lost forever. We’re talking about Coverdell Education Savings Accounts (ESAs). How ESAs work With an ESA, you contribute money now that the beneficiary can use later to pay qualified education expenses: Although contributions aren’t deductible, plan assets can grow tax-deferred, and distributions used for qualified education expenses are tax-free. You...

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Take Stock of Your Inventory Accounting Method’s Impact on Your Tax Bill

Posted by on Dec 26, 2016 in Blog, General, Management, Tax Tips | Comments Off on Take Stock of Your Inventory Accounting Method’s Impact on Your Tax Bill

Take Stock of Your Inventory Accounting Method’s Impact on Your Tax Bill

If your business involves the production, purchase or sale of merchandise, your inventory accounting method can have a significant impact on your tax liability. In some cases, using the last-in, first-out (LIFO) inventory accounting method, rather than first-in, first-out (FIFO), can reduce taxable income and give your cash flow a boost. However, tax savings aren’t the only factor to consider. FIFO vs. LIFO FIFO assumes that merchandise is sold in the order it was acquired or produced. So the cost of goods sold is based on older — and often...

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Ensure Your Year-End Donations Will Be Deductible on Your 2016 Return

Posted by on Dec 22, 2016 in Blog, General, Management, Tax Tips | Comments Off on Ensure Your Year-End Donations Will Be Deductible on Your 2016 Return

Ensure Your Year-End Donations Will Be Deductible on Your 2016 Return

Donations to qualified charities are generally fully deductible, and they may be the easiest deductible expense to time to your tax advantage. After all, you control exactly when and how much you give. To ensure your donations will be deductible on your 2016 return, you must make them by year end to qualified charities. When’s the delivery date? In order for a donation to be deductible on your 2016 return, it must be made by Dec. 31, 2016. According to the IRS, a donation generally is “made” at the time of its “unconditional delivery.” But...

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Why Making Annual Exclusion Gifts Before Year End Can Still Be a Good Idea

Posted by on Dec 19, 2016 in Blog, General, Management, Tax Tips | Comments Off on Why Making Annual Exclusion Gifts Before Year End Can Still Be a Good Idea

Why Making Annual Exclusion Gifts Before Year End Can Still Be a Good Idea

A tried-and-true estate planning strategy is to make tax-free gifts to loved ones while you’re still alive, because it reduces potential estate tax at death. There are several ways to make tax-free gifts, but one of the simplest is to take advantage of the annual gift tax exclusion with direct gifts. Even in a potentially changing estate tax environment, making annual exclusion gifts before year end can still be a good idea. What is the annual exclusion? The 2016 gift tax annual exclusion allows you to give up to $14,000 per recipient...

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Workers Age 50 and Up: Boost Retirement Savings Before Year End with Catch-up Contributions

Posted by on Dec 12, 2016 in Blog, General, Management, Tax Tips | Comments Off on Workers Age 50 and Up: Boost Retirement Savings Before Year End with Catch-up Contributions

Workers Age 50 and Up: Boost Retirement Savings Before Year End with Catch-up Contributions

Whether you didn’t save as much for retirement as you would have wished earlier in your career or you’d like to make the most of tax-advantaged savings opportunities, if you’ll be age 50 or older on December 31, consider making “catch-up” contributions to your employer-sponsored retirement plan by that date. These are additional contributions beyond the regular annual limits that can be made to certain retirement accounts. 401(k)s and SIMPLEs Under 2016 401(k) limits, if you’re age 50 or older, after you’ve reached the $18,000 maximum limit...

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Can You Pay Bonuses in 2017 But Deduct Them This Year?

Posted by on Dec 8, 2016 in Blog, General, Management, Tax Tips | Comments Off on Can You Pay Bonuses in 2017 But Deduct Them This Year?

Can You Pay Bonuses in 2017 But Deduct Them This Year?

You may be aware of the rule that allows businesses to deduct bonuses employees have earned during a tax year if the bonuses are paid within 2½ months after the end of that year (by March 15 for a calendar-year company). But this favorable tax treatment isn’t always available. For one thing, only accrual-basis taxpayers can take advantage of the 2½ month rule — cash-basis taxpayers must deduct bonuses in the year they’re paid, regardless of when they’re earned. However, even for accrual-basis taxpayers, the 2½ month rule isn’t automatic. The...

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