Buying vs. Leasing Equipment: Which Is Right for Your Business?

July 30, 2018
Leasing Equipment

Although there’s no universal “right” choice, many businesses that formerly leased assets are deciding to buy them, primarily to take advantage of expanded Section 179 and bonus depreciation deductions.

For tax years starting in 2018, the Tax Cuts and Jobs Act (TCJA) provides new and improved tax incentives for buying new and used business equipment. But leasing still offers benefits for some taxpayers. Here are some important considerations when deciding whether to buy or lease equipment. Read more

Small Business Tax Strategy: Heavy Vehicle Plus a Home Office

July 30, 2018
Small Business Tax

Every small business owner wants lower taxes. For those who drive a lot for work, buying a ‘heavy’ vehicle may open you up to a deduction under the new tax law.

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 expense records. Read more

New Law, New Limit on Deductions for Business Interest Expense

July 27, 2018
business interest

The Tax Cuts and Jobs Act (TCJA) imposes a new limitation on business interest expense deductions.

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. Read more

Reporting US Single Member LLCs with Foreign Ownership

July 25, 2018
Single Member LLC

Reporting your foreign owned single member LLC will be different going forward.

By Bethany Bouw, CPA

If you are a foreign person who has a US single member LLC, there are some new developments that you should be aware of for tax year 2017. Reporting policies regarding foreign ownership of single-member LLCs have recently changed. First and foremost, it is important to know your status – US or foreign. To determine this, you should check the IRS rules and contact a lawyer. Read more

10 Tips for Reporting Certain Foreign Corporations

July 25, 2018
Form 5471

Reporting Form 5471 may be confusing, though it is necessary for many who own foreign corporations.

By Bethany Bouw, CPA

Foreign corporations sound innocuous enough but when you delve into the reporting requirements it opens up a Pandora’s box of complex tax issues. There are so many aspects to consider in preparing to report foreign corporations and there has been a lot in the news lately regarding foreign corporations due to the new tax reform. Read more

Calculating Deductions for Business Interest Expense

July 24, 2018
interest expense

The Tax Cuts and Jobs Act generally limits business interest expense deductions for businesses with average annual gross receipts over $25 million, with a few industry-specific exceptions.

One of the most complicated provisions of the Tax Cuts and Jobs Act (TCJA) is the new limitation on deductions for business interest expense. At face value, this limitation seems straightforward, but the devil is in the details. Read more

International Tax Technical Update- July 2018

July 18, 2018

What is BEAT?

Enacted as part of the Tax Cuts and Job Act (TCJA), the new “base erosion and anti-abuse tax” (BEAT) can apply to certain corporations that make “base erosion payments” paid or accrued in taxable years beginning after December 31, 2017. Read more

New Law Makes Education-Savings Tools More Flexible

July 17, 2018

Various tax-advantaged savings options can help lower out-of-pocket costs of education.

From private preschool classes to college tuition, educating your family can be expensive. You can help lower the out-of-pocket costs by planning ahead with tax-advantaged education savings tools.

The Tax Cuts and Jobs Act (TCJA) retains most education-related tax breaks — and it even makes one saving plan more flexible. Read more

The ABCs of Higher Education Tax Breaks

July 16, 2018
Education tax breaks

As you begin to shop for dorm supplies and other necessities, here’s some important information about tax breaks for higher education costs.

The Tax Cuts and Jobs Act (TCJA) includes many changes that affect individual taxpayers. But, in terms of tax breaks for higher education, the new tax law generally maintains the status quo, with a few minor tweaks here and there. Here’s the rundown on education-related tax breaks for 2018 and beyond. Read more

Is an Association Health Plan Right for Your Company?

July 16, 2018
Association Health Plan

Last October, the Trump Administration set in motion the development of “association health plans” as an alternative for employers to provide health insurance to their workers.

Association health plans (AHPs) are health benefit policies made available to small employers through a group purchasing arrangement for the benefit of association members and their employees. Under the old rules, AHP availability was limited to tightly linked employers (such as parent-child companies). Under new regulations issued by the Department of Labor on June 19, “an AHP now could offer coverage to some or all employers in a state, city, county, or a multi-state metro area, or it could offer coverage to businesses in a trade or industry group nationwide.” Read more