Our Blog

Andrew Luce, CPA •

One of the most commonly used tax savings strategies is done when an individual or employer makes a contribution to a retirement plan. Luckily, as an individual or employer, you still have time to make a retirement plan contribution after December 31st to an employer 401(k), solo 401(k), Self-Employed Pension (SEP), or Individual Retirement Account (IRA) and deduct the contribution on your income tax return. For example, a contribution paid into your retirement plan in 2019 might be deductible on your 2018 income tax return.  The following information summarizes some key facts about these retirement plans, including timing and deductibility of retirement plan contributions, among other things:
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Andrew Luce, CPA •

So by now you’ve likely heard that you need to track your business mileage from your tax preparer but have been resistant to start tracking your mileage because it’s too time consuming or you’re just not aware of the rules. If time is your issue than I will admit up front I cannot help you. However, if you are not aware of the rules than I can help! The following information will help you understand what qualifies for business use vs. personal use and I’ve also include information on what type of information you’ll want to document to retain in your tax records. 
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Andrew Luce, CPA •

​If you are a business owner and keeping tabs on the new tax laws, you’ve likely heard a lot about a QBI (Qualified Business Income) tax deduction and how SSTBs (Specified Service Trade or Businesses) might miss out on this new 20% deduction.  Yes, there is a chance you won’t receive a full 20% deduction if you’re a married business owner, making over $315,000 (the beginning threshold for the QBI tax deduction phase-out), and in healthcare (one of the SSTB classifications), whereas a business owner of a landscaping company will likely fully benefit from this deduction with proper planning.  Before your mind starts racing about the inequalities of the new tax law, we should all be able to agree on at least one thing - the tax rates are lower this year (woohoo!), so it’s not recommended to make less money because you want to qualify for this 20% deduction.  Seriously, this 20% deduction wasn’t around in the past and you weren’t worried about making too much money so why worry about making too much money now when your rates are actually lower.  If you qualify for the deduction it will be gravy on top.  Also, there has been a lot published about this new rule and we are here to help you determine if you will benefit from this deduction but in the meantime keep the dough flowing!  If you’re unsure how this new deduction will impact your business and/or whether or not you’ll be included in the dreaded SSTB category, please feel free to contact me or one of our professionals. 

Lena Rozzi, CPA •
IRS Proposes Safe Harbor for Taxpayers Seeking the Section 199A Deduction for Rental Real Estate Activities
 
On January 18, 2019, the IRS released additional guidance on the much anticipated Section 199A deduction as many taxpayers eagerly await the opening of tax season. Among other issues, the guidance offers taxpayers a proposed safe harbor in determining when rental real estate activities can be treated as qualified trade or business for the purpose of taking the Section 199A deduction. This guidance is provided by the IRS in response to taxpayer uncertainty whether rental real estate activities qualify as a trade or business for the purpose of the Section 199A deduction. 
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Today, January 28th is the opening day of tax season for calendar-year 2018 tax returns. This means that the IRS is officially accepting electronic tax returns and taxpayers can begin submitting their federal returns today. 
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Lena Rozzi, CPA •
The Role of the Partnership Representative and What It Means to Your Business
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The Bipartisan Budget Act of 2015 (BBA) made significant changes to the rules governing federal partnership tax audits by allowing the IRS to audit and determine, assess, and collect any tax due, including any corresponding penalties and interest, at the partnership level. Under the previous rules, the IRS could audit a partnership, but could only assess and collect any tax due at the partner level. These changes are expected to result in dramatically increased audit rates for partnerships. 
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New Hampshire offers an Education Tax Credit that allows for certain state taxes to be offset by a credit for making donations to approved scholarship organizations. In 2018 the program was updated so that more taxpayers are eligible for the credit.
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As we quickly approach the deadline for filing 1099-MISC, it is time to consider whether your business is ready to file.
 
The due date for furnishing 1099-MISC statements to recipients and to the IRS for the 2018 tax year is January 31, 2019. Form 1099-MISC, Miscellaneous Income, is an informational return used by the Internal Revenue Service (IRS) to report payments made to non-employee individuals or unincorporated businesses during the calendar year. As the filing of Form 1099 remains a hot topic with the IRS, it is more important than ever to consider whether you are required to file Form 1099 in the course of your trade or business. 

On Friday, the IRS released the mileage reimbursement rates for 2019. Beginning on Jan. 1, 2019, the standard mileage rates for the use of a car, van, pickup or panel truck will be:
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As the end of the year approaches, it is a good time to think of planning moves that will help lower your tax bill for this year and possibly the next.

With the new Tax Cuts and Jobs Act there are many changes to the tax rules for businesses. The corporate tax rate is cut to 21%, the corporate AMT is gone, there are new limits on business interest deductions, and significantly liberalized expensing and depreciation rules.  We have compiled a checklist of actions based on current tax rules that may help you save tax dollars if you act before year-end. Not all actions will apply in your particular situation, but you (or a family member) will likely benefit from many of them. We can narrow down the specific actions that you can take once we meet with you to tailor a particular plan. In the meantime, please review the following list and contact us at your earliest convenience so that we can advise you on which tax-saving moves to make:
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