MLR

Category: Tax Related Topics

Are you thinking about buying a business? How you structure the deal will affect the taxes owed by the buyer (you) and the seller (the other party). The Tax Cuts and Jobs Act (TCJA) brought sweeping changes to the federal income tax rules for businesses, including some changes that affect the taxation of mergers and acquisitions. Here’s why many buyers are choosing to buy the assets of the target business, rather than its ownership interests, under current law — and why you may need to act fast to take advantage of breaks offered by the TCJA.

There may still be opportunities to reduce your company’s 2019 tax bill. If your business uses an accrual-based accounting system, there may still be opportunities to reduce your tax bill before the end of the year. Please check out our 5 tips to help trim your 2019 taxes.

Frequently, investors engage in securities transactions at year-end to improve their tax situation. This requires a basic understanding of the current tax rules for capital gains and losses. We want to review some of the important tax changes in the Tax Cuts and Jobs Act (TCJA) and how it affects investors and estate/gift planning with you.

The impact of the Tax Cuts and Jobs Act (TCJA) on businesses was just as significant as it was for individuals. For starters, the TCJA imposed a flat 21% tax rate on corporations, doubled the maximum Section 179 “expensing” allowance, limited business interest deductions and repealed write-offs for entertainment expenses. In addition, the TCJA made extensive changes affecting international taxpayers that could play an important role in any year-end planning decisions.

Year-end tax planning in 2019 remains as complicated as ever. Notably, many are still coping with the massive changes included in the biggest tax law in decades—the Tax Cuts and Jobs Act (TCJA) of 2017—and determining the most favorable strategies. Among other key changes for individuals, the TCJA reduced tax rates, suspended personal exemptions, increased the standard deduction and revamped the rules for itemized deductions. Generally, the provisions affecting individuals went into effect in 2018, but are scheduled to “sunset” after 2025. This provides a limited window of opportunity in some cases.

It’s common for owners of closely held businesses to transfer money into and out of the company. But it’s critical to make such transfers properly. If you don’t, you might hear from the IRS.

Recordkeeping for reimbursing business travel expenses can be cumbersome. Instead of reimbursing employees for the actual costs they incur for out-of-town lodging, meals and incidentals, some employers opt to pay fixed travel per diems. These amounts are based on IRS-approved rates that vary from locality to locality. Here’s what you’ll need to know to determine if this simplified approach is right for your business.

If you have acquired, constructed or substantially improved a building this year, or even in previous years, the tax benefits of a cost segregation study might be of interest to you. It may allow you to accelerate depreciation deductions, reduce your current taxes and boost cash flow.

Job applicants look at more than just wages when evaluating potential employers. They consider the whole compensation package, including fringe benefits and perks. These add-ons enable employers to cast a wider net in the job market, helping them attract and retain top-quality workers. Unfortunately, tax breaks for some fringe benefits were eliminated or suspended by the Tax Cuts and Jobs Act (TCJA). However, some other fringe benefits are still deductible by employers and tax-free to employees. Here are 14 popular benefits that remain on the books after the TCJA.

In merger and acquisition negotiations, taxes are an important consideration. Do you fully understand the tax consequences of purchasing the assets of a business? The rules are especially confusing if you operate the new entity as a so-called “pass-through” business. Here’s what you should know to help you comply with the rules and potentially lower taxes.