On the Summit CPA Virtual CFO Blog we publish a post every weekday, bringing you helpful information about accounting and finance, including cash flow management, business tax planning and financial forecasting. Here are our top five posts last month:
- New Tax Rules for Capital Expenditures- The tax reform bill that was passed in December 2017 has many provisions intended to benefit small businesses. The provisions include rules that will affect the way a small business will explain (account for) the cost of capital expenditures. Beginning this year the number of business property purchases you are able to expense each year increases to $1 million (previously $500,000). Usually, the spending on business property (office equipment, vehicles, etc.) is capitalized and depreciated in a way that the tax benefit is spread out...
- Do Your Family Loans have Tax Implications?- If you've ever considered giving a financial loan to a family member, read this post to learn how to avoid unintended tax consequences that can result from giving a family member a loan by learning the IRS rules around family loans.
- Tax Bracket vs. Tax Rate- The difference between your tax bracket and your tax rate is more than a trick question. One gives you an accurate reflection of your tax liability. While the other one is useful for planning purposes.
- The Pros and Cons of a Company Buyout Sometimes when a company is looking to reduce costs and employees, larger companies may offer a buyout to certain employees before dealing with layoffs. Buyouts can be good for both the company and the employee.
- Is it Fraud or Negligence? What’s the Difference? Every year there are thousands of investigations launched by the IRS in their fraud prevention campaign. IRS criminal investigations during the 2017 tax filing year identified potentially $2.5 billion in tax fraud and the conviction rates were 91.5%. However, the IRS understands that not everyone is out to commit fraud and that mistakes can happen to anyone. What you need to know is the difference between fraud and negligence.
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