Tax Planning

Don’t Roll the Dice With Your Taxes if You Gamble This Year

Yeo & Yeo CPAs & Business Consultants

For anyone who takes a spin at roulette, cries out “Bingo!” or engages in other wagering activities, it’s important to be familiar with the applicable tax rules. Otherwise, you could be putting yourself at risk for interest or penalties — or missing out on tax-saving opportunities. Wins You must report 100% of your wagering... Learn More

Buying a Used Car? Michigan Treasury Now Comparing Reported Vehicle Values to NADA Values to Determine Use Tax Due

Yeo & Yeo CPAs & Business Consultants

Under Michigan Sales/Use Tax Statutes, a casual seller, i.e., not a licensed new or used vehicle dealer, is not responsible for collecting and remitting sales tax on the sale of a used motor vehicle. Instead, the buyer is subject to Michigan use tax when registering the title with the Michigan Secretary of State office.  The ... Learn More

To Deduct Business Losses, You May Have to Prove “Material Participation”

Yeo & Yeo CPAs & Business Consultants

You can only deduct losses from an S corporation, partnership or LLC if you “materially participate” in the business. If you don’t, your losses are generally “passive” and can only be used to offset income from other passive activities. Any excess passive loss is suspended and must be carried forward to future years. Material part... Read More

Three Mutual Fund Tax Hazards to Watch Out For

Yeo & Yeo CPAs & Business Consultants

Investing in mutual funds is an easy way to diversify a portfolio, which is one reason why they’re commonly found in retirement plans such as IRAs and 401(k)s. But if you hold such funds in taxable accounts, or are considering such investments, beware of these three tax hazards: High turnover rates. Mutual funds... Learn More

Awards of RSUs Can Provide Tax Deferral Opportunity

Yeo & Yeo CPAs & Business Consultants

Executives and other key employees are often compensated with more than just salary, fringe benefits and bonuses: They may also be awarded stock-based compensation, such as restricted stock or stock options. Another form that’s becoming more common is restricted stock units (RSUs). If RSUs are part of your compensation package, be sure... Learn More

There’s Still Time For Homeowners to Save with Green Tax Credits

Yeo & Yeo CPAs & Business Consultants

The income tax credit for certain energy-efficient home improvements and equipment purchases was extended through 2016 by the Protecting Americans from Tax Hikes Act of 2015 (the PATH Act). So, you still have time to save both energy and taxes by making these eco-friendly investments. What qualifies The credit is for expenses re... Read More

How Many Employees Does Your Business Have for ACA Purposes?

Yeo & Yeo CPAs & Business Consultants

It seems like a simple question: How many full-time workers does your business employ? But, when it comes to the Affordable Care Act (ACA), the answer can be complicated. The number of workers you employ determines whether your organization is an applicable large employer (ALE). Just because your business isn’t an ALE one year... Read More

Finding the Right Tax-Advantaged Account to Fund Your Health Care Expenses

Yeo & Yeo CPAs & Business Consultants

With health care costs continuing to climb, tax-friendly ways to pay for these expenses are more attractive than ever. Health Savings Accounts (HSAs), Flexible Spending Accounts (FSAs) and Health Reimbursement Accounts (HRAs) all provide opportunities for tax-advantaged funding of health care expenses. But what’s the difference between... Learn More

Throw a Company Picnic for Employees This Summer and Enjoy Larger Deductions

Yeo & Yeo CPAs & Business Consultants

Many businesses host a picnic for employees in the summer. It’s a fun activity for your staff and you may be able to take a larger deduction for the cost than you would on other meal and entertainment expenses. Deduction limits Generally, businesses are limited to deducting 50% of allowable meal and entertainment expenses. B... Learn How

Stock Market Volatility Can Cut Tax on a Roth IRA Conversion

Yeo & Yeo CPAs & Business Consultants

This year’s stock market volatility can be unnerving, but if you have a traditional IRA, this volatility may provide a valuable opportunity: It can allow you to convert your traditional IRA to a Roth IRA at a lower tax cost. Traditional IRAs Contributions to a traditional IRA may be deductible, depending on your modified ad... Learn More