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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.

A Refresher on Major Tax Law Changes for Small-Business Owners

Posted by on Jan 3, 2019 in Blog, General, Management, Tax Tips | Comments Off on A Refresher on Major Tax Law Changes for Small-Business Owners

A Refresher on Major Tax Law Changes for Small-Business Owners

The 2018 income tax filing season will soon be upon us. After the end of the year, it’s generally too late to take action to reduce 2018 taxes. Therefore, business owners may want to shift their focus to assessing whether they’ll likely owe taxes or get a refund when they file their 2018 returns this spring, so they can plan accordingly. With the biggest tax law changes in decades under the Tax Cuts and Jobs Act (TCJA), most businesses and their owners will be significantly impacted. So, refreshing yourself on the major changes is a good...

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Act Soon to Save 2018 Taxes on Your Investments

Posted by on Dec 24, 2018 in Blog, General, Management, Tax Tips | Comments Off on Act Soon to Save 2018 Taxes on Your Investments

Act Soon to Save 2018 Taxes on Your Investments

Do you have investments outside of tax-advantaged retirement plans? If you do, you might still have time to shrink your 2018 tax bill by selling some investments. You just need to carefully select which investments you decide to sell. Try balancing gains and losses If you’ve sold investments at a gain this year, consider selling some losing investments to absorb those gains. This is commonly referred to as “harvesting” your losses. If, however, you’ve sold investments at a loss this year, consider selling other investments in your portfolio...

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6 Last-Minute Tax Moves for Your Business

Posted by on Dec 20, 2018 in Blog, General, Management, Tax Tips | Comments Off on 6 Last-Minute Tax Moves for Your Business

6 Last-Minute Tax Moves for Your Business

Tax planning is an activity that happens year-round, but there are still some year-end strategies you can use to lower your 2018 tax bill. Here are six last-minute tax moves business owners should consider: Postpone invoices. If your business uses the cash method of accounting, and it would benefit from deferring income to next year, wait until early 2019 to send invoices. Accrual-basis businesses can defer recognition of certain advance payments for products to be delivered or services to be provided next year. Prepay expenses. A cash-basis...

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Year-End Tax and Financial To-Do List for Individuals

Posted by on Dec 12, 2018 in Blog, General, Management, Tax Tips | Comments Off on Year-End Tax and Financial To-Do List for Individuals

Year-End Tax and Financial To-Do List for Individuals

With 2019 on the horizon, here’s a quick list of tax and financial to-dos you should address before the end of 2018: Check your FSA balance. If you have a Flexible Spending Account (FSA) for health care expenses, you need to incur qualifying expenses by December 31 to use up these funds or you’ll potentially lose them. (Some plans allow you to carry over up to $500 to the following year or give you a 2½-month grace period to incur qualifying expenses.) Use expiring FSA funds to pay for eyeglasses, dental work or eligible drugs or health...

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2019 Q1 Tax Calendar: Key Deadlines for Businesses and Other Employers

Posted by on Dec 6, 2018 in Blog, General, Management, Tax Tips | Comments Off on 2019 Q1 Tax Calendar: Key Deadlines for Businesses and Other Employers

2019 Q1 Tax Calendar: Key Deadlines for Businesses and Other Employers

Here are some of the key tax-related deadlines that affect businesses and other employers during the first quarter of 2019. Keep in mind that 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. January 31 File 2018 Forms W-2, “Wage and Tax Statement,” with the Social Security Administration and provide copies to your employees. Provide copies of 2018 Forms 1099-MISC, “Miscellaneous...

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When Holiday Gifts and Parties Are Deductible or Taxable

Posted by on Nov 29, 2018 in Blog, General, Management, Tax Tips | Comments Off on When Holiday Gifts and Parties Are Deductible or Taxable

When Holiday Gifts and Parties Are Deductible or Taxable

The holiday season is a great time for businesses to show their appreciation for employees and customers by giving them gifts or hosting holiday parties. However, it’s a good idea to find out whether the expense is tax deductible and whether it’s taxable to the recipient before you begin shopping or sending out invitations. Here’s a brief review of the rules. Gifts to customers When you make gifts to customers, the gifts are deductible up to $25 per recipient per year. For purposes of the $25 limit, you need not include “incidental” costs...

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Tax Reform Expands Availability of Cash Accounting

Posted by on Nov 26, 2018 in Blog, General, Management, Tax Tips | Comments Off on Tax Reform Expands Availability of Cash Accounting

Tax Reform Expands Availability of Cash Accounting

Many more businesses are now eligible to use the cash method of accounting for federal tax purposes under the Tax Cuts and Jobs Act (TCJA). The cash method allows some businesses to defer taxable income, offering greater tax-planning flexibility. Newly eligible businesses should determine whether the cash method would be advantageous and, if so, consider switching methods. What’s changed? Previously, the cash method was unavailable to certain businesses, including: C corporations — as well as partnerships (or limited liability companies taxed...

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Catch-Up Retirement Plan Contributions Can Be Particularly Advantageous Post-TCJA

Posted by on Nov 21, 2018 in Blog, General, Management, Tax Tips | Comments Off on Catch-Up Retirement Plan Contributions Can Be Particularly Advantageous Post-TCJA

Catch-Up Retirement Plan Contributions Can Be Particularly Advantageous Post-TCJA

Will you be age 50 or older by December 31st? Are you still working? Are you already contributing to your 401(k) plan or Savings Incentive Match Plan for Employees (SIMPLE) up to the regular annual limit? Then you may want to make “catch-up” contributions by the end of the year. Increasing your retirement plan contributions can be particularly advantageous if your itemized deductions for 2018 will be smaller than in the past because of changes under the Tax Cuts and Jobs Act (TCJA). Catching up Catch-up contributions are additional...

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Buy Business Assets Before Year End to Reduce Your 2018 Tax Liability

Posted by on Nov 8, 2018 in Blog, General, Management, Tax Tips | Comments Off on Buy Business Assets Before Year End to Reduce Your 2018 Tax Liability

Buy Business Assets Before Year End to Reduce Your 2018 Tax Liability

The Tax Cuts and Jobs Act (TCJA) enhances two depreciation-related breaks that are popular year-end tax planning tools for businesses. In order for you to take advantage of these breaks, you must purchase qualifying assets and place them in service by the end of the tax year. This means there’s still time to reduce your 2018 tax liability with these breaks, but you need to act soon. Section 179 expensing Sec. 179 expensing is valuable because it allows businesses to deduct up to 100% of the cost of qualifying assets in Year 1 instead of...

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Donate Appreciated Stock for Twice the Tax Benefits

Posted by on Nov 5, 2018 in Accounting, Blog, General, Management, Tax Tips | Comments Off on Donate Appreciated Stock for Twice the Tax Benefits

Donate Appreciated Stock for Twice the Tax Benefits

A tried-and-true year’s end tax strategy is to make charitable donations. You can claim a charitable deduction as long as you itemize and your gift qualifies. But did you know that you can enjoy an additional tax benefit if you donate long-term appreciated stock instead of cash? 2 benefits from 1 gift Appreciated publicly traded stock you’ve held more than one year is long-term capital gains property. If you donate it to a qualified charity, you may be able to enjoy two tax benefits: 1. If you itemize deductions, you can claim a charitable...

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