In December 2017, the United States government voted to approve the Tax Cuts and Jobs Act. This bill offers the largest revision to American tax laws in decades. While there has been a bit of controversy over who will benefit from the new tax laws and whether it will succeed at its goal of strengthening the economy, it seems that small, pass-through businesses are optimistic about what this new tax reform will mean for their taxes.
Starting a profitable small business is an important goal for many folks. Whether you are in the planning stages, or already up-and-running, one key to profitability is legally minimizing your taxes. Although the tax code provides many legitimate tax advantages for small businesses, some of this can be obscure or unclear, at least at first.
Before starting a new business, it is important to understand exactly what type of business entity you are going to establish. Each type of business entity has specific methods of reporting business activity to the IRS, so it's important that you know which methods apply to you. So here is a quick breakdown of Sole Proprietorships, C Corporations and S Corporations, Partnerships, and LLCs.
Congress enacted the 529 savings tax exemptions back in 1996. The plans are named after section 529 of the IRS Code.Our November 2017 blog talked about the tax advantages of a college 529 savings plan. Originally designed as an incentive to save for college expenses, the plan provides both federal and state tax incentives.
"Can I deduct this on my taxes?" is a common question this time of year. Itemizing your deductions can be tricky and time consuming, especially when you have a lot of business-related expenses, but it can save you money in the long run if you do it correctly.