Tax Planning

Meals are not necessarily Entertainment

You may have heard that in the Tax Cuts and Jobs Act (TCJA), passed in December of 2017, there was a prohibition put in place against entertainment expenses. Historically, there was a deduction allowed of up to 50% of those entertainment expenses that were otherwise an ordinary and necessary business expense. However the TCJA removed…

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Discounts on future purchases make for tricky deductions

Today, many retail businesses are running customer loyalty programs that offer customers discounts on future gasoline purchases after they make qualifying purchases. In some cases the discounts are limited to gasoline purchases and customers may end up not using the discount before the expiration date. If your business uses, Generally Accepted Accounting Principals (GAAP), for it’s accounting, you would…

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Is Crowdfunding taxable?

Crowdfunding has become a popular way to raise money for a new venture.  New legislation has created certain exemptions for crowdfunding from SEC registration requirements which has increased the ability of startups to use this option to obtain financing.  However you might be surprised by the tax treatment of crowdfunded contributions to your business.  Since…

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Tricky tax issues with offering gift cards

A recent memorandum from the IRS Chief Counsel contained seemingly good news about the taxation of gift cards.  Unfortunately the IRS couldn’t help but leave themselves a backdoor to challenge business operators, on the subject. When a business receives an advanced payment for the sale of goods, the deferral of taxable income, is by the grace…

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The problem with non qualified deferred compensation plans and FICA

Does your business provide deferred compensation to key employees, aside from qualified retirement plans? If you providing 401K, SEP, SIMPLE type plans for your employees, those are qualified plans. However what if you simply agree to pay a group of executives, future bonuses for their hard work and commitment? Delaying compensation for key players who…

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