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LLCs Electing S Corporation Status
Limited Liability Companies (LLCs) are a popular choice of business entity among small business owners. This is because a multi-member LLC combines the limited liability of a corporation with the tax flexibility of a partnership. There may be times, however, when LLC members choose to make an S Corporation election. Before that happens, it is…
Read MoreNew Indiana Depreciation Rules
On May 5, 2019, Governor Holcomb signed into law Senate Enrolled Act #565 updating numerous tax provisions including updates to both Section 179 and bonus depreciation when property is acquired in a trade. We now have two separate Section 179 limitations. The Section 179 limit for property acquired in a trade is generally limited to…
Read MoreLate in 2018, the Internal Revenue Service announced the 2019 official estate and gift tax limits
2019 Individual Estate and Gift Tax Exemption The 2019 estate and gift tax exemption is $11.4 million per individual, up from $11.18 million in 2018. What does this mean? An individual can leave $11.4 million to heirs and pay no federal estate or gift tax while married couples will be able to shield $22.8 million. This shield…
Read MoreIndirect Roth IRA Strategy
Lincoln Perkins, CPA Mr. and Mrs. Roth want to accumulate monies in individual Roth IRA’s so they will have an income tax free source of cash during their future retirement. Unfortunately, their adjusted gross income is higher than the IRS limits and they are prohibited from making direct contributions to a Roth IRA. The…
Read MoreChanges to the Department of Workforce Development Reporting Requirements
Beginning in spring 2019, the Indiana Department of Workforce Development (DWD) has rolled out a new platform in which state unemployment tax must now be submitted by all employers. The new platform will allow employers full online access to Unemployment Insurance account information, including report submission, tax payments and information on account issues. Updates to…
Read MoreThe Tax Cuts and Jobs Act and Nonprofit Entities
The “Tax Cuts and Jobs Act” (TCJA) has a far-reaching impact to nonprofit entities that was not publicized until December 2018. Embedded in the TCJA were items regarding non-deductible parking fringes. In this verbiage, nonprofits were mentioned and on December 10, 2018 the IRS provided guidance to assess the impact on nonprofits that provide parking…
Read MoreWhat Do You Love?
What do you love? Each year on Valentine’s Day it’s nearly impossible to avoid the barrage of hearts and hues of red and pink that flood the world over. Candy and flowers and chocolates suddenly appear in every retailer from the grocery store to the gas station. The signs of love are everywhere. For the…
Read MoreQualified Business Income Deduction
One of the highlights of the new tax law is a great new deduction for business owners called the Qualified Business Income Deduction. It is a 20% deduction against the net income of a taxpayer’s qualifying business. For high income taxpayers there are certain rules that apply if they have what is known as a…
Read More1099 Due Date is Approaching
Just a reminder that the due date for filing most 1099 forms is almost here. Any 1099-MISC forms with an entry in Box 7 for non-employee compensation need to BOTH be furnished to the recipient AND filed with IRS by January 31. These forms need to be completed for anyone your business paid any independent…
Read MoreReasonable Compensation
As an S Corporation owner, reasonable compensation is likely a concept that has been discussed with you. With the passage of the Tax Cuts and Jobs Act, this topic may be one that needs further explored. A 20% deduction is now available based on your Qualified Business Income, essentially net taxable profit of your entity.…
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