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As a business owner, it is possible that at some point during the year, you may experience an excess business loss or net operating loss. However, there are tax relief options and deductions available that can be beneficial, particularly for small business owners, by reducing their tax liability for the current and future years. To take advantage of these tax planning strategies, it’s important to be aware of essential factors and limitations specific to your situation.
When a taxpayer dies, there are certain returns that still need to be filed, a responsibility that falls onto the personal representative. If the taxpayer had any income during the year of death, that will need to be reported on their tax return. Beyond tax returns, there are also forms and notices that need to be submitted to the IRS.
Many tax responsibilities and changes come along with divorce. If you complete your divorce on or before Dec. 31 (the final day of the tax year) then you must file as single and can not file a joint return. Not only does your filing status change but you may be transferring ownership of property or other assets, paying or receiving alimony or child support, and managing other costs of the divorce. All of these aspects come into play when filing taxes after divorce.
When it comes to developing your business, one of the first steps is to choose a business entity structure. It is important to consider the various advantages and disadvantages that each business structure provides. For many business owners, it can be difficult to decide which is the right choice. Our Business Entity Comparison Chart lays out each structure and the correlated accounting forms, rules, benefits, and liabilities. This will help you decide which entity makes the most sense for you and ultimately which will accommodate you best when working toward your business goals.
Ultimately, when an estate is transferred from the owner to their heirs at death, there are federal taxes, and sometimes state taxes levied on the assets in the estate. Estate tax planning is the process of evaluating each unique circumstance to reduce potential estate tax liability by either reducing the amount of taxable property or minimizing the valuation of the property in the taxable estate.
A common problem with single-owner and other closely-held corporations is the intermingling of funds. The intermingling of funds can occur when a corporate shareholder uses his or her personal checking account for corporate deposits or payment of corporate expenses. Intermingling funds may not seem like an issue but it can weaken the business’s integrity. One result of this, which may affect these businesses and their owners down the road, is that courts can pierce the corporate veil by stating that the corporation is not separate and distinct from the individual as evidenced by the intermingling of finances.
There are many events that occur during the year that can affect your business tax situation. Preparation of your tax return involves summarizing transactions and events that occurred during the prior year. Our Business Expense Worksheet allows businesses to categorize and itemize a list of expenses that were made on behalf of the organization. This report helps the employer and their accountant determine what money was spent, what was purchased, and how much of the expenditure is approved for reimbursement.
A worker’s status determines what taxes are paid and who is responsible for reporting and paying those taxes. It is important that employers correctly assign a title to each of the people performing services for them. If an employee is incorrectly treated as an independent contractor it can lead to bigger issues with the IRS.
This PDF gives an overview of both independent contractors and employees as well as factors to determine worker status.
In addition to being subject to higher federal tax rates, taxpayers whose income exceeds certain levels have tax deductions and credits that are reduced or eliminated.
This PDF gives an overview of high-income taxpayers’ tax rates, contribution limits, tax credits, benefits, and more ways for high-income taxpayers to save on their 2022 taxes.
Budgeting for charitable contributions allows you to share your wealth and invest in your community. By using the proper tax planning strategies, making charitable contributions can also reduce your taxable income.
Our “Charitable Contributions Guide” reviews the types of organizations that qualify as charitable, guidelines on charitable contribution deduction limitations, as well as tips on what you should pay attention to when donating a vehicle.
Gift tax is a type of transfer tax, imposed when one individual or entity gifts something of value to someone else with no payment, or less than the full value, in return.
This guide gives a breakdown of gift tax, gifts subject to gift tax, how gift tax may apply to loans, joint tenancies, and what is excluded from the gift tax.
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