Tax Planning

Meeting

Should You Elect S Corporation Status?

Yeo & Yeo CPAs & Business Consultants

Operating a business as an S corporation may provide many advantages, including limited liability for owners and no double taxation (at least at the federal level). Self-employed people may also be able to lower their exposure to Social Security and Medicare taxes if they structure their businesses as S corps for federal tax purposes. Bu... Should you elect S corporation status?

Business-Team

Wayfair: Update on State Sales Tax

Kelly Brown

It has been a year since the landmark case of South Dakota v. Wayfair, Inc. was decided. One by one, states continue to pass economic nexus provisions for sales tax. Economic nexus requires out-of-state businesses to collect sales tax (on taxable goods and services) for states in which they are not physically present once the business re... Read the Wayfair Update

Tax Planning

Using Nongrantor Trusts as an Effective Tax Planning Tool After the TCJA

Andrew Matuzak

The record-high lifetime exemption amount currently in effect means that fewer families are affected by gift and estate taxes. As a result, the estate planning focus for many people has shifted from transfer taxes to income taxes. However, the Tax Cuts and Jobs Act (TCJA) imposed limitations on certain itemized deductions that affected m... Using nongrantor trusts as an effective tax planning tool

Tax

The Tax Implications of Being a Winner

Yeo & Yeo CPAs & Business Consultants

If you’re lucky enough to be a winner at gambling or the lottery, congratulations! After you celebrate, be ready to deal with the tax consequences of your good fortune. Winning at gambling Whether you win at the casino, a bingo hall, or elsewhere, you must report 100% of your winnings as taxable income. They’re reported on the “... Read the tax brief

Social Security

You May Have To Pay Tax On Social Security Benefits

Yeo & Yeo CPAs & Business Consultants

During your working days, you pay Social Security tax in the form of withholding from your salary or self-employment tax. And when you start receiving Social Security benefits, you may be surprised to learn that some of the payments may be taxed. If you’re getting close to retirement age, you may be wondering if your benefits are going to b... How much will you have to pay?

Business Tax

Businesses Can Utilize The Same Information IRS Auditors Use To Examine Tax Returns

Yeo & Yeo CPAs & Business Consultants

The IRS uses Audit Techniques Guides (ATGs) to help IRS examiners get ready for audits. Your business can use the same guides to gain insight into what the IRS is looking for in terms of compliance with tax laws and regulations. Many ATGs target specific industries or businesses, such as construction, aerospace, art galleries, child care... Learn about the Audit Technique Guides

Tax

Bartering: A Taxable Transaction Even If Your Business Exchanges No Cash

Yeo & Yeo CPAs & Business Consultants

Small businesses may find it beneficial to barter for goods and services instead of paying cash for them. If your business engages in bartering, be aware that the fair market value of goods that you receive in bartering is taxable income. And if you exchange services with another business, the transaction results in taxable income for bo... Learn about taxable transactions

Business-Team

It’s a Good Time to Buy Business Equipment and Other Depreciable Property

Yeo & Yeo CPAs & Business Consultants

There’s good news about the Section 179 depreciation deduction for business property. The election has long provided a tax windfall to businesses, enabling them to claim immediate deductions for qualified assets, instead of taking depreciation deductions over time. And it was increased and expanded by the Tax Cuts and Jobs Act (TCJA). ... It's a good time to buy business equipment

Charity

Volunteering for Charity: Do You Get a Tax Break?

Yeo & Yeo CPAs & Business Consultants

If you’re a volunteer who works for charity, you may be entitled to some tax breaks if you itemize deductions on your tax return. Unfortunately, they may not amount to as much as you think your generosity is worth. Because donations to charity of cash or property generally are tax deductible for itemizers, it may seem like donations of s... Do you get a tax break?