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Returning Value Blog

Choosing The Right Accounting Method For Tax Purposes

Posted by Jessica L. Pagan, CPA on Aug 17, 2018

The Tax Cuts and Jobs Act (TCJA) liberalized the eligibility rules for using the cash method of accounting, making this method — which is simpler than the accrual method — available to more businesses. Now the IRS has provided procedures a small business taxpayer can use to obtain automatic consent to change its method of accounting under the TCJA. If you have the option to use either accounting method, it pays to consider whether switching methods would be beneficial.

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Posted in Business Tax

Do You Qualify For The Home Office Deduction?

Posted by Nick Wheeler, CPA on Aug 07, 2018

Under the Tax Cuts and Jobs Act, employees can no longer claim the home office deduction. If, however, you run a business from your home or are otherwise self-employed and use part of your home for business purposes, the home office deduction may still be available to you.

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Posted in Business Tax

Business Deductions For Meal, Vehicle and Travel Expenses: Document, Document, Document

Posted by Marty Williams, CPA on Jul 23, 2018

Meal, vehicle, and travel expenses are common deductions for businesses. But if you don’t properly document these expenses, you could find your deductions denied by the IRS.

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Posted in Business Tax

Choosing The Best Business Entity Structure Post-TCJA

Posted by Michael D. Machen, CPA, CVA on Jul 20, 2018

For tax years beginning in 2018 and beyond, the Tax Cuts and Jobs Act (TCJA) created a flat 21% federal income tax rate for C corporations. Under prior law, C corporations were taxed at rates as high as 35%. The TCJA also reduced individual income tax rates, which apply to sole proprietorships and pass-through entities, including partnerships, S corporations, and, typically, limited liability companies (LLCs). The top rate, however, dropped only slightly, from 39.6% to 37%.

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Posted in Business Tax

Close-up On The New QBI Deduction's Wage Limit

Posted by Lesley L. Price, CPA on Jul 18, 2018

The Tax Cuts and Jobs Act (TCJA) provides a valuable new tax break to noncorporate owners of pass-through entities: a deduction for a portion of qualified business income (QBI). The deduction generally applies to income from sole proprietorships, partnerships, S corporations and, typically, limited liability companies (LLCs). It can equal as much as 20% of QBI. But once taxable income exceeds $315,000 for married couples filing jointly or $157,500 for other filers, a wage limit begins to phase in.

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Posted in Business Tax

Is It Time To Adopt The New Hedge Accounting Principles?

Posted by Melissa Motley, CPA on Jul 09, 2018

Implementing changes in accounting rules can be a real drag. But the new hedge accounting standard may be an exception to this generality. Many companies welcome this update and may even want to adopt it early because the new rules are more flexible and attempt to make hedging strategies easier to report on financial statements.

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Posted in Business Tax

Does Your Business Have To Begin Collecting Sales Tax On All Out-of-state Online Sales?

Posted by Lisa Albritton on Jul 02, 2018

You’ve probably heard about the recent U.S. Supreme Court decision allowing state and local governments to impose sales taxes on more out-of-state online sales. The ruling in South Dakota v. Wayfair, Inc. is welcome news for brick-and-mortar retailers, who felt previous rulings gave an unfair advantage to their online competitors. And state and local governments are pleased to potentially be able to collect more sales tax.

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Posted in Business Tax

Tax Reform FAQ For Manufacturers

Posted by Melissa Motley, CPA on Jun 22, 2018

The $1.5 trillion tax reform legislation known as the “Tax Cuts and Jobs Act” (TCJA) represents the biggest change to the tax code since 1986. While the implications for businesses are broad and complex, we’ve summarized some of the most common tax reform questions for manufacturers:
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Posted in Business Tax

2018 Q3 Tax Calendar: Key Deadlines For Businesses and Other Employers

Posted by Jessica L. Pagan, CPA on Jun 18, 2018

Here are some of the key tax-related deadlines affecting businesses and other employers during the third quarter of 2018. Keep in mind that this list isn’t all-inclusive, so there may be additional deadlines that apply to you. Contact us to ensure you’re meeting all applicable deadlines and to learn more about the filing requirements.

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Posted in Business Tax

New Tax Credit For Family and Medical Leaves

Posted by Lesley L. Price, CPA on Jun 13, 2018

Employers may benefit from new tax break

The new Tax Cuts and Jobs Act (TCJA) creates a unique tax break for certain businesses. If your company pays employees while they are out of work on a family or medical leave, it may claim a brand-new tax credit for a portion of the wages, beginning in 2018.

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Posted in Business Tax

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