2012 Year-End Tax Planning for Businesses
As 2012 comes to a close, get ready for more sweeping tax changes that will affect your business. In 2010, Congress extended many business incentives for one or two years. These incentives are about to expire. In addition, many of the “Bush-era” tax cuts are scheduled to sunset at the end of 2012. It is unclear if Congress will provide further extensions as they debate across-the-board spending cuts scheduled to take effect in 2013. In addition, businesses must prepare to comply with new healthcare reform, and new exacting repair regulations. This combination of events provides tax planning considerations unique to 2012 that requires a multi-year strategy taking into account a variety of scenarios and outcomes.
2013 Year-End Tax Planning for Businesses
In recent years, end of year tax planning for businesses has been further complicated by uncertainty over the future availability of many tax incentives. The 2013 year-end is no different. In the early hours of January 1, 2013, the Senate passed the American Taxpayer Relief Act of 2012, which permanently extended the so-called Bush-era tax cuts. However, other popular provisions were only extended through 2013. Therefore, 2013 tax strategies include concerns over expiring provisions. But 2013 is also unique due to changes that are affecting businesses.
For example, as part of its primary purpose to facilitate health care reform, the Patient Protection and Affordable Care Act (PPAC) includes key tax provisions that affect businesses. Some requirements are already in effect, while other provisions apply starting in 2013 or later. Higher tax rates may be imposed on distributions to owners and the net investment income regulations have the potential to impact individuals who are owners of pass-through entities. In addition, the U.S. Supreme Court's ruling in mid-July on the unconstitutionality of the federal Defense of Marriage Act (DOMA) means changes to retirement plans and employee benefits for same-sex marriages. Also, compliance with final repair regulations affects virtually all businesses.
2014 Year-End Tax Planning for Businesses
In recent years, end of year tax planning for businesses has been complicated by uncertainty over the availability of many tax incentives. The 2014 year-end is no different. In the early hours of January 1, 2013, the Senate passed the American Taxpayer Relief Act of 2012, which permanently extended the so-called Bush-era tax cuts. However, other popular provisions were only extended through 2013. Therefore, 2014 tax strategies include concerns over the fate of the expired provisions. President Obama, the chairs of the House and Senate tax writing committees, and individual lawmakers all made tax reform proposals in 2014. The proposals ranged from comprehensive tax reform to more piece-meal approaches. However, any progress on legislation is stalled until after the elections and possibly into the beginning of 2015.
Employer Health Care Mandate Postponed Until 2015
The Obama Administration has announced that it is postponing the Patient Protection and Affordable Care Act’s (PPACA) mandatory employer and insurer reporting requirements for one year. As a result, the administration also announced that it will waive the imposition of any employer-shared responsibility penalty payments for 2014. This effectively means that employers with 50 or more employees will not be required to provide health insurance to their employees or face a penalty until 2015.
Federal & State Income Tax Preparation
“The hardest thing in the world to understand is the income tax”
- Albert Einstein
Fifty states, and fifty ways of doing things. Plus the complexities of doing business in multiple states? Not a problem—we've been doing it for years and have clients throughout the country. We're not interested in restricting our boundaries and neither should you.
Federal Tax Preparation & Planning
"If I had six hours to chop down a tree, I'd spend the first hour sharpening the ax."
- Abraham Lincoln
Being prepared for an upcoming tax deadline is relieving, saving you time and money. Additionally, with our premier Tax Preparation & Planning you can intelligently position your assets so you can maximize growth and minimize expense. We've been providing these services for over 35 years to businesses, individuals, and other CPAs who depend on our experience, knowledge, and contacts.
Florida Corporate Filings Due
Keep Business Accounts & Personal Accounts Separate
Commingling Funds is more than messy accounting—it is dangerous.
Paying personal bills, cashing checks to yourself when they were written to your business, or having shared bank accounts is an abuse of your corporate entity and may remove the protection of limited liability.
Know The Benefits of Being Your Own Boss
There are many benefits that come from being your own boss. If you work for yourself, as an independent contractor, or you carry on a trade or business as a sole proprietor, you are generally considered to be self-employed. See our special list of tax tips for the self employed or those who wish to be.
Limited Liability Companies (LLCs)
The decision to start your own business is a great step in life, and we are here to help. To be successful entrepreneurs need:
A great service or product to provide to the public
Guidance to find the intelligent way to structure the business
Poorly thought out business structures, often a Sole Proprietorship sometimes called a "Schedule C", can have taxes drain the life out of the core business, and expose the investors other assets to dangerous external liabilities. Fortunately, we have a tool that gives us great flexibility — the Limited Liability Company.
Patient Protection & Affordable Care Act: Proposed Rules For Employers
The IRS has issued proposed regulations to implement the information reporting requirements for insurers and certain employers under the Patient Protection and Affordable Care Act (PPAC). The proposals are a response to an ongoing dialog with representatives of employers, insurers, other reporting entities and individual taxpayers.
Provisions under PPAC require reporting by insurers, self-insuring employers, and other parties that provide health coverage; and also require information reporting by employers that are large enough to be subject to the employer shared responsibility provisions. In early July 2013, the Obama Administration announced a postponement of PPAC’s mandatory employer and insurer reporting requirements for one year. As a result, the reporting requirements have been delayed until 2015.
Preparing for Health Care Reform
On June 28, 2012, the U.S. Supreme Court upheld the constitutionality of the Patient Protection and Affordable Care Act (PPACA), and its companion law, the Health Care and Education Reconciliation Act of 2010. As part of its primary purpose to facilitate health care reform, the PPACA includes key tax provisions that affect individuals and businesses. Now that the Supreme Court has ruled, all must prepare to comply with the requirements under PPACA. Some requirements are already in effect, while other provisions apply starting in 2013 or later. As your CPA firm, we are here to help you plan for the future.
Proposed Regulations on Dispositions Under the Modified Accelerated Cost Recovery System
Although the IRS released final regulations that refine and simplify the rules for determining whether an expense may be deducted as a repair or must be capitalized, the Service chose not to finalize the regulations governing general asset accounts (GAAs) and the disposition of depreciable property under the Modified Accelerated Cost Recovery System (MACRS). Instead, proposed regulations were issued that make significant changes within this highly-controversial area.
Protect Your Business and Data from "Ransomware"
In 2014, consumers were subjected to security breach after security breach as major retailers and service providers disclosed that they had involuntarily shared your personal data. While this is an extremely dangerous trend, the majority affected could move on with only being inconvenienced. However, over the past few years, a new form of digital extortion has arisen that has damaged unprepared small businesses—Ransomware.
Ransomware is state of the art extortion that combines: Your Data, Bitcoin, Software Insecurity, Cryptography, Phishing Attacks, and Organized Crime. Ask yourself, would your business survive if you lost 100% of your data and backups? Could you afford a $1,000.00 to $100,000.00 ransom? Likely law enforcement will not be able to help.
Small Business Accounting & Profit Management
By letting us handle your accounting needs, you can be assured that things will be handled correctly and that our advice can help you maximize your profit and growth.
State Corporate Filing Websites
Typically corporations are required to file annual reports, most of which can be easily filed online. We hope that the following list will be helpful, please contact us if you need any assistance. We have marked the most common states.
Tax Tips for the Self Employed
There are many benefits that come from being your own boss. If you work for yourself, as an independent contractor, or you carry on a trade or business as a sole proprietor, you are generally considered to be self-employed.
Here are six key points the IRS would like you to know about self-employment and self- employment taxes:
The Pros & Cons of Using an S Corporation Structure
An especially popular tax or business structure among small businesses, the number of S Corporations has quadrupled in the past 15 years and by far is the most common form of doing business except for the unincorporated sole proprietorship. However, whether it is an appropriate choice for your new business depends on your particular facts and circumstances.
Travel and Entertainment From A Tax Perspective
Although modernized communication has reduced the need for in-person contact, it is still sometimes necessary for businesses to send employees out of town on business, or to entertain clients and customers. How travel and entertainment expenses are handled can have an impact on your net income, your paperwork burden, and on the tax results for you and your employees.
Vehicle Depreciation and Deductions
In general, if you use your vehicle in pursuit of a trade or business, you are allowed to deduct the ordinary and necessary expenses incurred while operating the vehicle. However, any expenses associated with the personal use of the vehicle are not deductible. For purposes of these deductions, "car" includes a passenger vehicle, van, pickup or panel truck.
Personal vs. business miles. Business use of your car can include traveling from one work location to another work location within your tax home area; visiting customers; attending a business meeting away from the regular workplace; and traveling from home to a temporary workplace if you have one or more regular places of work. The costs of travel between home and a regular place of work, however, are nondeductible commuting expenses.