Tax Planning

Year-End Tax Strategies for Accrual-Basis Taxpayers

Yeo & Yeo CPAs & Business Consultants

The last month or so of the year offers accrual-basis taxpayers an opportunity to make some timely moves that might enable them to save money on their 2016 tax bill. Record and recognize The key to saving tax as an accrual-basis taxpayer is to properly record and recognize expenses that were incurred this year but won’t be paid... Learn More

Can You Pay Bonuses in 2017 but Deduct Them This Year?

Yeo & Yeo CPAs & Business Consultants

You may be aware of the rule that allows businesses to deduct bonuses employees have earned during a tax year if the bonuses are paid within 2½ months after the end of that year (by March 15 for a calendar-year company). But this favorable tax treatment isn’t always available. For one thing, only accrual-basis taxpayers can take advantag... Learn How

What the Self-Employed Need to Know About Employment Taxes

Yeo & Yeo CPAs & Business Consultants

In addition to income tax, you must pay Social Security and Medicare taxes on earned income, such as salary and self-employment income. The 12.4% Social Security tax applies only up to the Social Security wage base of $118,500 for 2016. All earned income is subject to the 2.9% Medicare tax. The taxes are split equally between the emp... Learn More

A Brief Overview of the President-elect’s Tax Plan for Individuals

Yeo & Yeo CPAs & Business Consultants

Now that Donald Trump has been elected President of the United States and Republicans have retained control of both chambers of Congress, an overhaul of the U.S. tax code next year is likely. President-elect Trump’s tax reform plan, released earlier this year, includes the following changes that would affect individuals: Red... Learn More

A Quick Look at the President-elect’s Tax Plan for Businesses

Yeo & Yeo CPAs & Business Consultants

The election of Donald Trump as President of the United States could result in major tax law changes in 2017. Proposed changes spelled out in Trump’s tax reform plan released earlier this year that would affect businesses include: Reducing the top corporate income tax rate from 35% to 15%, Abolishing the corporate altern... Learn More

Accelerated Filing Deadline for 2016 Form W-2 and Form 1099

Yeo & Yeo CPAs & Business Consultants

Employers and small businesses will soon face a new filing deadline for Form W-2 reporting wages and Form 1099-MISC reporting non-employee compensation. This new deadline was enacted by the PATH Act of 2015 to help the IRS verify the legitimacy of tax refunds before issuing them. Beginning with the 2016 forms (those filed in 2017),... Learn More

How to Make the Most of Medical Expense Deductions

Yeo & Yeo CPAs & Business Consultants

With the ever-increasing cost of health insurance and medical care, you should be vigilant in finding ways to claim tax breaks related to health care. Unfortunately, that's now harder than before because a change included in the Affordable Care Act (ACA) increased the income-based threshold for deducting itemized medical expenses. ... Learn How

'Loan Payments' Can Be Taxable Corporate Distributions to Shareholders

Yeo & Yeo CPAs & Business Consultants

There can be negative tax consequences when purported loan payments are recast as corporate distributions to shareholders. In some cases, the courts have ruled that withdrawals from two closely held corporations were constructive corporate distributions rather than loan proceeds and repayments. As such, the withdrawals triggered taxable ... Learn More

Tax-Smart Options for Your Old Retirement Plan When You Change Jobs

Yeo & Yeo CPAs & Business Consultants

There’s a lot to think about when you change jobs, and it’s easy for a 401(k) or other employer-sponsored retirement plan to get lost in the shuffle. But to keep building tax-deferred savings, it’s important to make an informed decision about your old plan. First and foremost, don’t take a lump-sum distribution from your old employer’s r... Learn More

Shareholder Loans: Courts Examine 8 Factors

Yeo & Yeo CPAs & Business Consultants

In determining if a payment to a shareholder is proceeds from a tax-free loan from a corporation to a shareholder or a tax-free repayment of a loan from the shareholder to the corporation (as opposed to a potentially taxable corporate distribution to the shareholder), courts look at whether: 1. There's a written promise to repay evidence... Read More