Arbitration Agreements Save Headaches and Dollars
If an employee accuses your company of discrimination and takes you to court, the ensuing battle could take years and cost thousands of dollars. When it’s all over, neither side may have much to show for it. It allows your company to avoid jury trials and makes large damage awards unlikely. Your employees benefit, as well,…
Due Diligence Is Key in Contractual Disputes
Be timely in making claims. If you have problems getting paid for your contractual work, don’t be lulled into a sense that you can sort it out with your government contacts. The courts have consistently held that contractors must exercise due diligence in making claims. And that means knowing who to make the claim to and…
The Benefits of Leasing
If your company wants to improve cash flow, you might consider leasing equipment, vehicles and facilities, rather than buying. The primary advantage of leasing used to be the tax advantages. But the fact that leasing allows you to conserve cash makes it a form of financing. It’s not an alternative that works for every company…
Charitable Donations: The World of Quid Pro Quo
A contribution to a charity isn’t always a tax-deductible contribution for the donor, as in the case of “quid pro quo” donations. This exchange of one thing for another happens when a charity receives a payment that includes a contribution and, in return, provides the donor with goods or services valued for less than the total payment….
Small Business Tax Strategy: Heavy Vehicle Plus a Home Office
Small business owners are always looking for easy ways to lower their taxes. Here’s a simple, but effective, tax planning technique that’s available under the Tax Cuts and Jobs Act (TCJA) for 2018 through 2022. To take advantage, you need to purchase a “heavy” vehicle, work from a qualifying home office and keep detailed business…
IRA Recharacterizations: What the Current Tax Law Allows
When you convert a traditional IRA into a Roth IRA and then reverse the transaction by switching the account back to its original status, the reversal is called a recharacterization. Similarly, making an annual contribution to one type of IRA and then reversing it to another type is also a recharacterization. But for Roth conversions done in…
The Half Million Dollar Baby
The true cost of having a kid. What does it actually cost to raise a child? A hospital bill for a childbirth can run quite high. Births can cost as much as $70,908, depending on a wide variety of factors.1 Not to mention the costs associated with prenatal care. Kids have to eat. Food cost…
How to Deduct Legal Expenses
Legal expenses incurred by individuals are typically not currently deductible under the federal income tax rules. Instead, they’re most often treated as either personal outlays (which are nondeductible) or as part of the cost of acquiring an asset, such as real estate. When Can You Claim a Nonbusiness Deduction for Legal Expenses? As stated in the…
More businesses will have to charge sales tax in more states under recent U.S. Supreme Court ruling
By: Karen T. Syrylo, CPA States no longer need to restrict their sales tax collection requirements to only sellers that have a physical presence in the state, according to the June 21, 2018 decision by the U.S. Supreme Court in South Dakota v. Wayfair. The result is that sellers that deal with their customers only…
New Law, New Limit on Deductions for Business Interest Expense
The Tax Cuts and Jobs Act (TCJA) imposes a new limitation on deductions for business interest expense. This is a permanent change for tax years beginning in 2018 and beyond. Will your business be affected? Here’s what you need to know. 3 Exceptions to the Interest Expense Limitation Many businesses will be exempt from the interest…