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Returning Value Blog

Coronavirus (COVID-19): Tax Relief for Small Businesses

Posted by Nick Wheeler, CPA on Mar 24, 2020

Businesses across the country are being affected by the coronavirus (COVID-19). Fortunately, Congress recently passed a law that provides at least some relief. In a separate development, the IRS has issued guidance allowing taxpayers to defer any amount of federal income tax payments due on April 15, 2020, until July 15, 2020, without penalties or interest. 

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Posted in Business Tax

Determine a Reasonable Salary for a Corporate Business Owner

Posted by Lesley L. Price, CPA on Mar 12, 2020

If you’re the owner of an incorporated business, you probably know that there’s a tax advantage to taking money out of a C corporation as compensation rather than as dividends. The reason is simple. A corporation can deduct the salaries and bonuses that it pays executives, but not its dividend payments. Therefore, if funds are withdrawn as dividends, they’re taxed twice, once to the corporation and once to the recipient. Money paid out as compensation is taxed only once, to the employee who receives it.

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Posted in Business Tax

Do You Run Your Business From Home? You Might Be Eligible for Home Office Deductions

Posted by Marty Williams, CPA on Mar 04, 2020

If you’re self-employed and work out of an office in your home, you may be entitled to home office deductions. However, you must satisfy strict rules. 

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Posted in Individual Tax, Business Tax

Work Opportunity Tax Credit Extended Through 2020

Posted by Jessica L. Pagan, CPA on Mar 02, 2020

If you’re a business owner, be aware that a recent tax law extended a credit for hiring individuals from one or more targeted groups. Employers can qualify for a valuable tax credit known as the Work Opportunity Tax Credit (WOTC). 

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Posted in Business Tax

How Business Owners May Be Able to Reduce Tax by Using an S Corporation

Posted by Lesley L. Price, CPA on Feb 20, 2020

Do you conduct your business as a sole proprietorship or as a wholly-owned limited liability company (LLC)? If so, you’re subject to both income tax and self-employment tax. There may be a way to cut your tax bill by using an S corporation.

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Posted in Business Tax

Do Your Employees Receive Tips? You May Be Eligible for a Tax Credit.

Posted by Murry Guy, CPA on Feb 07, 2020

Are you an employer who owns a business where tipping is customary for providing food and beverages? You may qualify for a tax credit involving the Social Security and Medicare (FICA) taxes that you pay on your employees’ tip income.

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Posted in Business Tax

Accounting for Indirect Job Costs the Right Way

Posted by Nick Wheeler, CPA on Jan 27, 2020

Construction contractors, professional service firms, specialty manufacturers and other companies that work on large projects often struggle with job costing. Full cost allocations are essential to gauging whether you’re making money on each job. But some companies simply lump indirect job costs into overhead or fail to use meaningful cost drivers, thereby skewing their profit reports. Here’s what you should know to avoid this pitfall and get a clearer picture of your company’s profitability.

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Posted in Business Tax

Cents-Per-Mile Rate for Business Miles Decreases Slightly for 2020

Posted by Murry Guy, CPA on Jan 23, 2020

This year, the optional standard mileage rate used to calculate the deductible costs of operating an automobile for business decreased by one-half cent, to 57.5 cents per mile. As a result, you might claim a lower deduction for vehicle-related expenses for 2020 than you can for 2019.

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Posted in Business Tax

Wayfair Revisited - It's Time to Review Your Sales Tax Obligations

Posted by Lisa Albritton on Jan 03, 2020

In its 2018 decision in South Dakota v. Wayfair, the U.S. Supreme Court upheld South Dakota’s “economic nexus” statute, expanding the power of states to collect sales tax from remote sellers. Today, nearly every state with a sales tax has enacted a similar law, so if your company does business across state lines, it’s a good idea to reexamine your sales tax obligations.

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Posted in Business Tax

New Law Provides a Variety of Tax Breaks to Businesses and Employers

Posted by Jessica L. Pagan, CPA on Jan 02, 2020

While you were celebrating the holidays, you may not have noticed that Congress passed a law with a grab bag of provisions that provide tax relief to businesses and employers. The “Further Consolidated Appropriations Act, 2020” was signed into law on December 20, 2019. It makes many changes to the tax code, including an extension (generally through 2020) of more than 30 provisions that were set to expire or already expired.

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Posted in Business Tax

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