Joseph Heneghan No Comments

10 Tax Elections to Save Money on Your 2019 Return

2020 is a presidential election year. You’ll have an opportunity to cast a vote for your favored presidential candidate in November, but you can make several other key “elections” this year when filing your 2019 tax return. These elections may be influenced by the Tax Cuts and Jobs Act (TCJA), as well as the year-end spending package that was signed late last year. 

Here are ten important choices that individuals and small business owners can make this tax season.

Read more
Joseph Heneghan No Comments

Four Ways to Keep Cash Flow High During Busy Season

Everyone struggles to keep up when business really takes off. Projects come all at once. You may hire additional field workers to meet the demand. Payroll is stretched because payments which come in on your new projects lag months behind the large sums you lay out weekly to pay your workers.

This type of project financing concern is not yours alone. All construction contractors face this type of project financing snafu to some degree. The basic problem is your firm gets paid months after you need the money to run your projects.

Read more
Joseph Heneghan No Comments

Joint Ventures – How They Can Open Doors

Joint ventures are common in the construction industry, especially with large long-term projects. These collaborative arrangements allow construction firms to work together, for a limited time period, on one or more construction projects.

The upsides include pooling of expertise and resources, broader geographic reach, reduced risk, and enhanced financing and bonding capacity. But joint ventures also have potential pitfalls, so they need to be set up and managed with care.

Read more
Joseph Heneghan No Comments

Foreign Tax Credit: High Tax Kick-Out

By Bethany Banks, CPA

There can be considerable confusion amongst taxpayers who face foreign taxes as to what is creditable and how to allocate, calculate, and carryforward/carry back. There can still be surprises for those who feel they have a good grasp on the basics. One of the areas that can take a taxpayer by surprise is handling foreign tax credit for high taxed income.

Read more
Joseph Heneghan No Comments

Age Has It’s Privileges and Penalties

Did you, or someone in your family, have a birthday recently? Reaching certain ages can result in the need to make some tax and financial moves. Miss certain deadlines and you might lose out on valuable tax breaks. Take a look at some age-related milestones and why they may be important to you and your family members.

In an era filled with uncertainty, you can count on one thing: time marches on. Here are some important age-related financial and tax milestones to keep in mind for you and your loved ones: Read more

Joseph Heneghan No Comments

Taxation Issues in the Gig Economy

Mobile apps and online platforms have revolutionized the way many businesses offer services to consumers. Examples of the so-called “Gig” economy are widespread – from ride sharing and vacation rentals to on-demand housekeeping and legal advice. If you decide to jump on the sharing economy bandwagon, it’s important to understand the tax rules for recognizing income, making estimated payments and deducting legitimate business expenses.

Do you provide car rides through a mobile app, rent out your spare room using an online platform or repair computers for local businesses on demand? If so, you may be considered part of the “gig economy” or the “sharing economy.”

Participation in this emerging method of distributing services can be a good way to earn money in your down time, pursue a more flexible lifestyle and provide cash to offset the expenses associated with owning a vehicle or a home. The IRS recently offered some guidance for this rising trend. Here’s a summary of the key points. Read more

Tu Nguyen No Comments

TCJA Depreciation and Other Deduction Changes

By Jason Dudas, CPA

Under the Tax Cuts and Jobs Act, contractors are now able to take a deduction for the full cost of machinery and equipment purchase made each year. This new provision is referred to as 100% bonus depreciation and there is no limitation on the amount of purchases. The provision is available for assets acquired and placed-in-service after September 27, 2017.

Read more

Christine Hradsky No Comments

Revenue Recognition: Private Companies Prepare for New Rules

Revenue Recognition

Private companies that follow U.S. Generally Accepted Accounting Principles (GAAP) are running out of time to implement the new revenue recognition rules. Are your accounting systems and personnel ready for this fundamental shift in financial reporting? The effects will likely be more far-reaching than expected, based on feedback from public companies that implemented the changes in 2018. Read more

Christine Hradsky No Comments

Overview of Real Estate Depreciation Changes

Real Estate

The new tax law is giving real estate investors reason to celebrate this tax season.

The Tax Cuts and Jobs Act (TCJA) included several favorable changes to the federal income tax depreciation rules for real estate. However, one intended change didn’t make it into the statutory language, and there are some potential pitfalls to avoid. Here’s what real estate investors need to know. Read more