Tax Planning

How to Calculate Nondeductible Parking Expenses

Wendy Thompson

Legitimate business expenses – including parking expenses – that have always been deductible may now be nondeductible. There has been an increasingly large uproar about these nondeductible expenses since the regulations were released in December 2018 (Notice 2018-99). The regulations were billed as describing the process for nonprofits, but when... Learn how to calculate your parking expenses

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Will Leasing Equipment or Buying it be More Tax Efficient for Your Business?

Yeo & Yeo CPAs & Business Consultants

Recent changes to federal tax law and accounting rules could affect whether you decide to lease or buy equipment or other fixed assets. Although there’s no universal “right” choice, many businesses that formerly leased assets are now deciding to buy them. Pros and cons of leasing From a cash flow perspective, leasing can be more attractive... Be more Tax Efficient

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Beware the Ides of March — If You Own a Pass-Through Entity

Yeo & Yeo CPAs & Business Consultants

Shakespeare’s words don’t apply just to Julius Caesar; they also apply to calendar-year partnerships, S corporations and limited liability companies (LLCs) treated as partnerships or S corporations for tax purposes. Why? The Ides of March, more commonly known as March 15, is the federal income tax filing deadline for these “pass-through”... Beware the Ides of March

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Some of Your Deductions May be Smaller When You File Your 2018 Tax Return

Yeo & Yeo CPAs & Business Consultants

While the Tax Cuts and Jobs Act (TCJA) reduces most income tax rates and expands some tax breaks, it limits or eliminates several itemized deductions that have been valuable to many individual taxpayers. Here are five deductions you may see shrink or disappear when you file your 2018 income tax return: 1. State and local tax deduction. ... Will your deductions be smaller?

Tax-Planning

3 Big TCJA Changes Affecting 2018 Individual Tax Returns and Beyond

Yeo & Yeo CPAs & Business Consultants

When you file your 2018 income tax return, you’ll likely find that some big tax law changes affect you — besides the much-discussed tax rate cuts and reduced itemized deductions. For 2018 through 2025, the Tax Cuts and Jobs Act (TCJA) makes significant changes to personal exemptions, standard deductions and the child credit. The de... Read the 3 Big TCJA Changes

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Making Smart Mergers and Acquisitions under Today’s Tax Law

Yeo & Yeo CPAs & Business Consultants

Many businesses will pay less federal income taxes in 2018 and beyond, thanks to the Tax Cuts and Jobs Act (TCJA). And some will spend their tax savings on merging with or acquiring another business. Before you jump on the M&A bandwagon, it's important to understand how your transaction will be taxed under current tax law. Stock vs.... Learn how to make smart mergers under today's tax law

Why You Shouldn’t Wait to File Your 2018 Income Tax Return

Yeo & Yeo CPAs & Business Consultants

The IRS opened the 2018 income tax return filing season on January 28. Even if you typically don’t file until much closer to the April 15 deadline, this year consider filing as soon as you can. Why? You can potentially protect yourself from tax identity theft — and reap other benefits, too. What is tax identity theft? In a tax identi... Why you shouldn't wait to file

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Fundamental Tax Truths for C Corporations

Yeo & Yeo CPAs & Business Consultants

The flat 21% federal income tax rate for C corporations under the Tax Cuts and Jobs Act (TCJA) has been great news for these entities and their owners. But some fundamental tax truths for C corporations largely remain the same: C corporations are subject to double taxation. Double taxation occurs when corporate income is taxed once at the co... Learn the fundamental tax truths for C corporations

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Be Ready for Scams this Tax Season

Yeo & Yeo CPAs & Business Consultants

Each year, thousands of taxpayers are tricked into revealing their personal information online and lose millions of dollars. A recent phishing attempt targeted Michigan business taxpayer W-2 forms. The IRS compiles annually its “Dirty Dozen,” a list of common scams that taxpayers may encounter at any time of year, but peak during fi... Be ready for scams this tax season