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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.

Tax-Free Fringe Benefits Help Small Businesses and Their Employees

Posted by on Oct 11, 2018 in Blog, General, Management, Tax Tips | Comments Off on Tax-Free Fringe Benefits Help Small Businesses and Their Employees

Tax-Free Fringe Benefits Help Small Businesses and Their Employees

In today’s tightening job market, to attract and retain the best employees, small businesses need to competitive pay as well as appealing fringe benefits. Tax-free benefits are especially attractive to employees. Let’s take a quick look at some popular options. Insurance Businesses can provide their employees with various types of insurance on a tax-free basis. Here are some of the most common: Health insurance. If you maintain a health care plan for employees, coverage under the plan isn’t taxable to them. Employee contributions are excluded...

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Charitable IRA Rollovers May Be Especially Beneficial in 2018

Posted by on Oct 4, 2018 in Blog, General, Management, Tax Tips | Comments Off on Charitable IRA Rollovers May Be Especially Beneficial in 2018

Charitable IRA Rollovers May Be Especially Beneficial in 2018

You can make direct contributions — up to $100,000 annually — from your IRA to qualified charitable organizations without owing any income tax on the distributions if you’re age 70½ or older. This break may be especially beneficial now because of Tax Cuts and Jobs Act (TCJA) changes that affect who can benefit from the itemized deduction for charitable donations. Counts toward your RMD A charitable IRA rollover can be used to satisfy required minimum distributions (RMDs). In the year you reach 70 ½ you must begin to take annual RMDs from your...

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Tax Planning for Investments Gets More Complicated

Posted by on Oct 1, 2018 in Blog, General, Management, Tax Tips | Comments Off on Tax Planning for Investments Gets More Complicated

Tax Planning for Investments Gets More Complicated

Fall is a good time for investors to review year-to-date gains and losses. Not only can it help you assess your financial health, but it also helps you determine whether to buy or sell investments before year end to save taxes. This year, you also need to keep in mind the impact of the Tax Cuts and Jobs Act (TCJA). While the TCJA didn’t change long-term capital gains rates, it did change the tax brackets for long-term capital gains and qualified dividends. For 2018 through 2025, these brackets are no longer linked to the ordinary-income tax...

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Businesses Aren’t Immune to Tax Identity Theft

Posted by on Sep 27, 2018 in Blog, General, Management, Tax Tips | Comments Off on Businesses Aren’t Immune to Tax Identity Theft

Businesses Aren’t Immune to Tax Identity Theft

Tax identity theft may seem like a problem that’s only faced by individual taxpayers. But, according to the IRS, more and more businesses are also becoming victims. And identity thieves have become more sophisticated, knowing filing practices, the tax code, and the best ways to get valuable data. How it works In tax identity theft, a taxpayer’s identifying information (such as Social Security number) is used to fraudulently obtain a refund or commit other crimes. Business tax identity theft occurs when criminals use the identifying...

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The Tax Deduction Ins and Outs of Donating Artwork to Charity

Posted by on Sep 24, 2018 in Blog, General, Management, Tax Tips | Comments Off on The Tax Deduction Ins and Outs of Donating Artwork to Charity

The Tax Deduction Ins and Outs of Donating Artwork to Charity

If you collect art and are charitably inclined, appreciated artwork can make one of the best charitable gifts from a tax perspective. In general, donating appreciated property is doubly beneficial because you can both enjoy a valuable tax deduction and avoid the capital gains taxes you’d owe if you sold the property. The extra benefit from donating artwork comes from the fact that the top long-term capital gains rate for art and other “collectibles” is 28%, as opposed to 20% for most other appreciated property. Requirements The first thing to...

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Be Sure Your Employee Travel Expense Reimbursements Pass Muster with the IRS

Posted by on Sep 20, 2018 in Blog, General, Management, Tax Tips | Comments Off on Be Sure Your Employee Travel Expense Reimbursements Pass Muster with the IRS

Be Sure Your Employee Travel Expense Reimbursements Pass Muster with the IRS

If your business reimburses employees’ work-related travel expenses you know it can help you attract and retain employees. If you don’t, you might want to start, because changes under the Tax Cuts and Jobs Act (TCJA) make such reimbursements even more attractive to employees. Travel reimbursements also come with tax benefits, but you must follow a method that passes muster with the IRS. The TCJA’s impact Before the TCJA, unreimbursed work-related travel expenses were generally deductible on an employee’s individual tax return (subject to a...

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2018 Q4 Tax Calendar: Key Deadlines for Businesses and Other Employers

Posted by on Sep 17, 2018 in Blog, General, Management, Tax Tips | Comments Off on 2018 Q4 Tax Calendar: Key Deadlines for Businesses and Other Employers

2018 Q4 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 fourth quarter of 2018. Keep in mind that this list isn’t all-inclusive, so there may be additional deadlines that apply to you. October 15 If a calendar-year C corporation that filed an automatic six-month extension: File a 2017 income tax return (Form 1120) and pay any tax, interest and penalties due. Make contributions for 2017 to certain employer-sponsored retirement plans. October 31 Report income tax withholding and FICA taxes for third...

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You Might Save Tax if Your Vacation Home Qualifies as a Rental Property

Posted by on Sep 13, 2018 in Blog, General, Management, Tax Tips | Comments Off on You Might Save Tax if Your Vacation Home Qualifies as a Rental Property

You Might Save Tax if Your Vacation Home Qualifies as a Rental Property

If you own a vacation home and you both rent it out and use it personally, you might save tax by taking steps to make sure it qualifies as a rental property this year. Vacation home expenses that qualify as rental property expenses aren’t subject to the Tax Cuts and Jobs Act’s (TCJA’s) new limit on the itemized deduction for state and local taxes (SALT) or the lower debt limit for the itemized mortgage interest deduction. Rental or personal property? If you rent out your vacation home for 15 days or more, the expenses you can deduct depend on...

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How to Reduce the Tax Risk of Using Independent Contractors

Posted by on Sep 6, 2018 in Blog, General, Management, Tax Tips | Comments Off on How to Reduce the Tax Risk of Using Independent Contractors

How to Reduce the Tax Risk of Using Independent Contractors

Classifying a worker as an independent contractor frees a business from payroll tax liability and allows it to forgo providing overtime pay, unemployment compensation, and other employee benefits. It also frees the business from responsibility for withholding income taxes and the worker’s share of payroll taxes. This is why the federal government views misclassifying a bona fide employee as an independent contractor unfavorably. If the IRS reclassifies an independent contractor as an employee, your business could be hit with back taxes,...

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Keep it SIMPLE: A Tax-Advantaged Retirement Plan Solution for Small Businesses

Posted by on Sep 3, 2018 in Blog, General, Management, Tax Tips | Comments Off on Keep it SIMPLE: A Tax-Advantaged Retirement Plan Solution for Small Businesses

Keep it SIMPLE: A Tax-Advantaged Retirement Plan Solution for Small Businesses

If your small business doesn’t a retirement plan for its employees, you may want to consider a SIMPLE IRA. Offering a retirement plan can help you attract and retain employees while providing your business with valuable tax deductions. For a variety of reasons, a SIMPLE IRA can be a particularly appealing option for small businesses. The deadline for setting one up for this year is October 1, 2018. The basics SIMPLE stands for “savings incentive match plan for employees.” These plans are simple to set up and administer. Unlike 401(k) plans,...

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