Tax Planning

Before Donating a Vehicle, Find Out the Charity's Intent

Yeo & Yeo CPAs & Business Consultants

If you donate your vehicle, the value of your deduction can vary greatly depending on what the charity does with it. You can deduct the vehicle’s fair market value (FMV) if the charity: Uses the vehicle for a significant charitable purpose (such as delivering meals-on-wheels to the elderly) Sells the vehicle for substantially le...

Save Taxes by Hiring Children to Work in the Family Business

Yeo & Yeo CPAs & Business Consultants

One unique aspect of owning your business is the ability to hire your children. Whether doing so makes sense is more than a business decision. The answer depends a great deal on your intentions for passing the business to future generations, the child’s interest and aptitude, and feelings about how much a parent should “help” a child a...

100% Deduction for Certain Meal and Entertainment Expenses

Yeo & Yeo CPAs & Business Consultants

Generally, businesses are limited to deducting 50% of allowable meal and entertainment (M&E) expenses. But certain expenses are 100% deductible, including expenses: For food and beverages furnished at the workplace primarily for employees, Treated as employee compensation, That are excludable from employees’ income as d...

Facing an Unexpected Bill for the Additional 0.9% Medicare Tax?

Yeo & Yeo CPAs & Business Consultants

The additional 0.9% Medicare tax applies to FICA wages and self-employment income exceeding $200,000 per year ($250,000 for married filing jointly and $125,000 for married filing separately). Unfortunately, the withholding rules have been tripping up some taxpayers, causing them to face an unexpected tax bill — plus interest and ...

Beware of Phony IRS Calls

Yeo & Yeo CPAs & Business Consultants

Taxpayers around the area continue to receive calls from alleged IRS representatives stating that "This is a final notice from IRS that we are filing a lawsuit against you." The callers are often rude and belligerent. If you are not home they will leave a message and tell you to call a phone number. This is a scam and is intended to steal ...

IRS Allows Additional Time to Claim Retroactive Work Opportunity Tax Credit

Yeo & Yeo CPAs & Business Consultants

The IRS has provided employers with additional time to obtain the certification necessary to claim the Work Opportunity Tax Credit for 2014, which was retroactively extended by the Tax Increase Prevention Act of 2014 to cover eligible employees who began work before Jan. 1, 2015. An employer that hired a member of a targeted group, or a tax...

Affordable Care Act Reporting Requirements are Looming – Employers Need to Prepare

Yeo & Yeo CPAs & Business Consultants

In early 2016, employers with 50 or more full-time or full-time equivalent employees, labeled Applicable Large Employers (ALEs) by the federal government’s Affordable Care Act, will be required for the first time to report information about their employees and health insurance coverage afforded to them in 2015. New Forms 1095-B (Health Coverage)...

What You Need to Know About the Tax Increase Prevention Act of 2014

Yeo & Yeo CPAs & Business Consultants

The Tax Increase Prevention Act of 2014 extends the “tax extenders” retroactively for one year (through 2014). This allows taxpayers to claim the temporary incentives on their 2014 tax returns that are filed in 2015. It also includes the Achieving a Better Life Experience (ABLE) Act, creating tax-favored savings accounts for individual...

Michigan Personal Property Tax - Still an Issue for Michigan Businesses

Yeo & Yeo CPAs & Business Consultants

Personal Property Tax Reform was passed in Michigan during 2014, but Michigan businesses still have a Personal Property Tax (PPT) filing requirement in 2015. Small businesses - those with less than $80,000 in personal property within a taxing jurisdiction need to file an affidavit to claim exemption from PPT. It is due Febru...