Tax Tips for Small Businesses: Deductions
Business owners should review options and eligibility for tax deductions now to better estimate their tax situation and plan ahead. The key deductions that will be reviewed are the qualified business income deduction, business losses, and business expenses. Qualified Business Deduction: The qualified business income deduction (“QBI”) allows eligible owners of pass-through entities (sole-proprietorships, partnerships, S-corporations, trusts, and estates) to deduct 20% of thei
Estimated Tax Payments
The IRS has urged businesses to make estimated tax payments during the year to avoid owing money. Estimated tax is the method used to pay tax on income that is not subject to withholding. This will generally mean making quarterly estimated payments as income is earned or received during the year. The IRS coined the phrase “pay as you go, so you don’t owe”. Individuals, including sole proprietors, partners and S corporation shareholders, generally must make estimated tax pay
Understanding the Basics of Section 179 Deductions
Section 179 deductions are not as ominous or complex as they may seem. In a nutshell, Section 179 of the IRS tax code allows businesses to deduct the full purchase price of qualifying equipment and/or software purchased or financed during the tax year. That means that if you buy (or lease) a piece of qualifying equipment, you can deduct the full purchase price from your gross income. Section 179 is one of the few government incentives available to small businesses that provi
6 Essentials of Estate Planning, Part 2: Beneficiary Designations, Healthcare Power of Attorney, and
Part 1 discussed wills/trusts, durable power of attorney, and letters of intent. This part will focus on the basics of the last 3 essential items (beneficiary designations, healthcare power of attorney, and guardianship designations). Beneficiary designations determine where any assets (e.g. 401(k), insurance) not mentioned or dictated in the will, will go. It is important to maintain a beneficiary and a contingent beneficiary on such accounts or plans. If a beneficiary is
6 Essentials of Estate Planning, Part 1: Will/Trust and Durable Power of Attorney.
Whether you are creating a plan for a large, complex estate or a small, modest estate, these 6 essentials should be included in your plan: will/trust, durable power of attorney, letter of intent, beneficiary designations, healthcare power of an attorney, and guardianship designations. Part 1 of this series will review the basics of the first three items listed (wills/trusts, durable power of attorney, and letters of intent). A will or trust is generally one of the main compo
