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Returning Value Blog

Tax-Wise Ways to Take Cash From Your Corporation While Avoiding Dividend Treatment

Posted by Jessica L. Pagan, CPA on Mar 05, 2024

If you want to withdraw cash from your closely held corporation at a low tax cost, the easiest way is to distribute cash as a dividend. However, a dividend distribution isn’t tax efficient since it’s taxable to you to the extent of your corporation’s “earnings and profits,” but it’s not deductible by the corporation.

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Posted in Business Tax

Taking Your Spouse on a Business Trip? Can You Write off the Costs?

Posted by Nick Wheeler, CPA on Feb 21, 2024

A recent report shows that post-pandemic global business travel is going strong. The market reached $665.3 billion in 2022 and is estimated to hit $928.4 billion by 2030, according to a report from Research and Markets. If you own your own company and travel for business, you may wonder whether you can deduct the costs of having your spouse accompany you on trips.

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Posted in Business Tax

U.S. House Passes Bipartisan Tax Bill

Posted by Murry Guy, CPA on Feb 15, 2024

U.S. House Passes Bipartisan Tax Bill to Provide Business Tax Breaks, Extend Child Tax Credit Enhancements

The U.S. House of Representatives on January 31 passed the Tax Relief for American Families and Workers Act of 2024 (H.R. 7024) by a vote of 357 to 70. The $78 billion bipartisan bill, crafted by Senate Finance Committee Chair Ron Wyden (D-Ore.) and House Ways and Means Committee Chair Jason Smith (R-Mo.), would revive or extend certain business tax incentives and enhance the child tax credit. 

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Posted in Business Tax

What's the Best Accounting Method Route for Business Tax Purposes?

Posted by Lesley L. Price, CPA on Feb 12, 2024

Businesses basically have two accounting methods to figure their taxable income: cash and accrual. Many businesses have a choice of which method to use for tax purposes. The cash method often provides significant tax benefits for eligible businesses, though some may be better off using the accrual method. Thus, it may be prudent for your business to evaluate its method to ensure that it’s the most advantageous approach.

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Posted in Business Tax

Liquidity Overload: Why Having Too Much Cash May Be Bad for Business

Posted by Jessica L. Pagan, CPA on Feb 12, 2024

In today’s uncertain marketplace, many businesses are stashing operating cash in their bank accounts, even though they might not have imminent plans to deploy their reserves. However, excessive “rainy day” funds could be an inefficient use of capital. Here’s a systematic approach to help estimate reasonable cash reserves and maximize your company’s return on long-term financial positions.

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Posted in Business Tax

Update on IRS Efforts to Combat Questionable Employee Retention Tax Credit Claims

Posted by Nick Wheeler, CPA on Feb 05, 2024

The Employee Retention Tax Credit (ERTC) was introduced back when COVID-19 temporarily closed many businesses. The credit provided cash that helped enable struggling businesses to retain employees. Even though the ERTC expired for most employers at the end of the third quarter of 2021, it could still be claimed on amended returns after that.

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Posted in Business Tax

2024 Q1 Tax Calendar: Key Deadlines For Businesses and Other Employers

Posted by Jessica L. Pagan, CPA on Jan 24, 2024

Here are some key tax-related deadlines affecting businesses and other employers during the first quarter of 2024. Keep in mind that this list isn’t all-inclusive, so there may be additional deadlines that apply to you. If you have questions about filing requirements, contact us. We can ensure you’re meeting all applicable deadlines.

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Posted in Business Tax

Tax-Favored Qualified Small Business Corporation Status Could Help You Thrive

Posted by Lesley L. Price, CPA on Jan 23, 2024

Operating your small business as a Qualified Small Business Corporation (QSBC) could be a tax-wise idea.

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Posted in Business Tax

The Standard Business Mileage Rate Will Be Going Up in 2024

Posted by Murry Guy, CPA on Jan 17, 2024

The optional standard mileage rate used to calculate the deductible cost of operating an automobile for business will be going up by 1.5 cents per mile in 2024. The IRS recently announced that the cents-per-mile rate for the business use of a car, van, pickup, or panel truck will be 67 cents (up from 65.5 cents for 2023).

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Posted in Business Tax

2023 Year-End Reminders Regarding Common Fringe Benefits

Posted by Murry Guy, CPA on Dec 14, 2023

As 2023 draws to a close, employers should review whether they have properly included the value of common fringe benefits in their employees’ and (if applicable) 2% S corporation shareholders’ taxable wages. This is especially true for 2023 and beyond, as many employers continue to deal with remote or hybrid workforces.

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Posted in Business Tax

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