- 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 can 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...
- COVID-19 Resources for Business Owners and CPA Firms. Many business owners and CPA firms are unsure of what steps to take to mitigate risk, protect employees and support customers. While we don’t have all the answers, we want to share what we do know, and offer some guidance for our CPA firms and business owners that may be experiencing shifts in their business.
- 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.
- Chart of accounts in QuickBooks-5 things you should know. As a business owner starting out, you probably didn’t think that you would have to become an expert in accounting. Although it’s not a requirement to have knowledge of accounting principles, there are still certain concepts that you need to understand.
- Effective Tax Rate vs. Tax Bracket. Though this can be a little tricky, it is not a trick question. For instance, when you know your tax rate it gives you an accurate reflection of your tax liability relative to your total income. Whereas, knowing your tax bracket is useful for planning purposes. For example, if you decide you want to spread a Roth conversion over several years in order to stay within the income limits of a certain tax bracket.
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