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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.

Divorcing Business Owners Need to Pay Attention to Tax Implications

Posted by on Apr 11, 2019 in Blog, General, Management, Tax Tips | Comments Off on Divorcing Business Owners Need to Pay Attention to Tax Implications

Divorcing Business Owners Need to Pay Attention to Tax Implications

If you’ve ever gotten a divorce, you know it’s a highly stressful time. But if you’re a business owner, tax issues can complicate things even more. Your business ownership interest is one of your largest personal assets and all (or part) of it will be included in your marital property. Transferring property tax-free You can generally divide most assets, including cash and business ownership interests, between you and your soon-to-be ex-spouse without any federal income or gift tax consequences. When an asset falls under this tax-free transfer...

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Understanding How Taxes Factor Into an M&A Transaction

Posted by on Apr 8, 2019 in Blog, General, Management, Tax Tips | Comments Off on Understanding How Taxes Factor Into an M&A Transaction

Understanding How Taxes Factor Into an M&A Transaction

In recent years, merger and acquisition activity has been very brisk. If you are considering merging with or acquiring another business, it’s important for you to understand how the transaction will be taxed under current law. Stocks vs. assets From a tax standpoint, a transaction can basically be structured in two ways: 1. Stock (or ownership interest). A buyer can directly purchase a seller’s ownership interest if the target business is operated as a C or S corporation, a partnership, or a limited liability company (LLC) that’s treated as a...

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Make a Deductible IRA Contribution for 2018. It’s Not Too Late!

Posted by on Apr 4, 2019 in Blog, General, Management, Tax Tips | Comments Off on Make a Deductible IRA Contribution for 2018. It’s Not Too Late!

Make a Deductible IRA Contribution for 2018. It’s Not Too Late!

Do you want to save more for retirement on a tax-favored basis? If so, and if you qualify, you can make a deductible traditional IRA contribution for the 2018 tax year between now and the tax filing deadline and claim the write-off on your 2018 return. Or you can contribute to a Roth IRA and avoid paying taxes on future withdrawals. You can potentially make a contribution of up to $5,500 (or $6,500 if you were age 50 or older as of December 31, 2018). If you’re married, your spouse can potentially do the same, thereby doubling your tax...

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Still Working After Age 70½? You May Not Have to Begin 401(k) Withdrawals

Posted by on Apr 1, 2019 in Blog, General, Management, Tax Tips | Comments Off on Still Working After Age 70½? You May Not Have to Begin 401(k) Withdrawals

Still Working After Age 70½? You May Not Have to Begin 401(k) Withdrawals

You must generally begin taking withdrawals from a qualified retirement plan, such as a 401(k), no later than April 1 of the year after which you turn age 70½. However, an exception applies to certain plan participants who are still working for the entire year in which they turn 70½. The basics of RMDs RMDs (Required minimum distributions) are the amounts you’re legally required to withdraw from your qualified retirement plans and traditional IRAs after reaching age 70½. Essentially, the tax law requires you to tap into your retirement assets...

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2019 Q2 Tax Calendar: Key Deadlines for Businesses and Other Employers

Posted by on Mar 28, 2019 in Blog, General, Management, Tax Tips | Comments Off on 2019 Q2 Tax Calendar: Key Deadlines for Businesses and Other Employers

2019 Q2 Tax Calendar: Key Deadlines for Businesses and Other Employers

Here are some of the key tax-related deadlines for businesses and other employers during the second quarter of 2019. Keep in mind this list isn’t all-inclusive, so there may be additional deadlines that apply to your situation. Contact us to ensure you’re meeting all applicable deadlines and to learn more about the filing requirements. April 1 File with the IRS if you’re an employer that will electronically file 2018 Form 1097, Form 1098, Form 1099 (other than those with an earlier deadline) and/or Form W-2G. If your employees receive tips...

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Vehicle-Expense Deduction Ins and Outs for Individual Taxpayers

Posted by on Mar 11, 2019 in Blog, General, Management, Tax Tips | Comments Off on Vehicle-Expense Deduction Ins and Outs for Individual Taxpayers

Vehicle-Expense Deduction Ins and Outs for Individual Taxpayers

In addition to businesses being able to deduct vehicle-related expenses, individuals also can deduct them in certain circumstances. Unfortunately, the Tax Cuts and Jobs Act (TCJA) might reduce your deduction compared to what you were able to claim on your 2017 return. For 2017, miles driven for business, moving, medical and charitable purposes were potentially deductible. For 2018 through 2025, business and moving miles are deductible only in much more limited circumstances. TCJA changes could also affect your tax benefit from medical and...

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Will Leasing Equipment or Buying It Be More Tax Efficient for Your Business?

Posted by on Mar 7, 2019 in Blog, General, Management, Tax Tips | Comments Off on Will Leasing Equipment or Buying It Be More Tax Efficient for Your Business?

Will Leasing Equipment or Buying It Be More Tax Efficient for Your Business?

Your decision as to whether you should lease or buy equipment (or other fixed assets) could be affected by recent changes to federal tax laws and accounting rules. Although there’s no universal “right” choice, many businesses that formerly leased assets are now deciding to buy them. Pros and cons of leasing Leasing can be more attractive than buying from a cash flow perspective. And leasing does provide some tax benefits because lease payments generally are tax deductible as “ordinary and necessary” business expenses. (Annual deduction limits...

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Careful Tax Planning Required for Incentive Stock Options

Posted by on Mar 4, 2019 in Blog, General, Management, Tax Tips | Comments Off on Careful Tax Planning Required for Incentive Stock Options

Careful Tax Planning Required for Incentive Stock Options

Incentive stock options (ISOs) are a popular form of compensation for executives and other employees of corporations. ISOs allow you to buy company stock in the future at a fixed price equal to or greater than the stock’s fair market value on the ISO grant date. If the stock appreciates, you can buy shares at a price below what they’re then trading for. But because of the complex rules that apply careful tax planning is required. Tax advantages abound Although ISOs must comply with many rules, they receive tax-favored treatment. You owe no...

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Beware the Ides of March — If You Own a Pass-Through Entity

Posted by on Feb 28, 2019 in Blog, General, Management, Tax Tips | Comments Off on Beware the Ides of March — If You Own a Pass-Through Entity

Beware the Ides of March — If You Own a Pass-Through Entity

In addition to Julius Caesar Shakespeare’s words also apply to calendar-year partnerships, S corporations and limited liability companies (LLCs) treated as partnerships or S corporations for tax purposes. Why? The Ides of March, more commonly known as March 15, is the federal income tax filing deadline for these “pass-through” entities. Not-so-ancient history Until the 2016 tax year, the filing deadline for partnerships was the same as that for individual taxpayers: April 15 (or the first business day after if April 15 fell on a weekend or...

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The Home Office Deduction: Actual Expenses vs. the Simplified Method

Posted by on Feb 25, 2019 in Blog, General, Management, Tax Tips | Comments Off on The Home Office Deduction: Actual Expenses vs. the Simplified Method

The Home Office Deduction: Actual Expenses vs. the Simplified Method

If you run your business from your home or perform certain functions at home that are related to your business, you might be able to claim a home office deduction against your business income on your 2018 income tax return. Now there are two methods for claiming this deduction: the actual expenses method and the simplified method. Basics of the deduction Generally, you can qualify for a home office deduction if part of your home is used “regularly and exclusively” as your principal place of business. If your home isn’t your principal place of...

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