Business Operations

2018 Tax Reform-Business Tax Changes

The Tax Cuts and Jobs Act (H.R. I; the Act) provides for major changes to business tax law.  Most of the changes are effective January 1, 2018.  The majority of the business provisions do not expire.

The following are a few changes that may save you significant tax dollars this year and in future years:

  • C-corporations: Are now subject to a flat tax of 21% and the special tax rate for personal service corporations is eliminated.
  • Small business deduction: Probably the most revolutionary addition to the tax law is the new deduction for qualified business income from “pass-through entities,” which also applies to sole proprietorships and rental properties. This provision can provide a deduction of up to 20% of your net “qualified business income”. This new law is too complicated to […]
By |February 8th, 2018|Categories: Announcements, Business Operations, Business Tax, IRS, Real Estate|Comments Off on 2018 Tax Reform-Business Tax Changes

2017 Tax Planning Guide

With the end of the year rapidly approaching, we are once again reaching out to share our annual Tax Planning Guide with you.  The 2017/2018 Tax Planning Guide is available here www.webtaxguide.net/Bregante.

Sweeping tax law changes that will impact individuals and businesses are outlined in the proposed Tax Plan released by the House Republicans on November 2, 2017 including:

  • Proposed decreases to certain individual and most business income tax rates
  • Repeal of a number of personal tax breaks including the deduction for state income taxes which can be significant for most California residents, reduction in the amount of new acquisition debt for principal residences that qualifies for the mortgage interest deduction, elimination of the mortgage interest deduction for […]

Helping S Corporations Avoid Unreasonable Compensation Audits

Since compensation is subject to employment taxes (i.e., primarily Social Security and Medicare taxes) and distributions to shareholders are not, many S corporation owners reduce their compensation and increase their shareholder distributions in an attempt to avoid the employment taxes.   In some cases this is justifiable, and in some it is not.  The IRS is well aware of this issue; in fact, one of the IRS’s hottest audit triggers for S corporations is insufficient compensation paid to employee-shareholders.

The Journal of Accountancy recently published an article that provides nine steps to help S corporations reduce the likelihood of an IRS examination for unreasonable owner compensation.  Read the article here.

 

By |May 17th, 2016|Categories: BCo Community News, Business Operations, Business Tax, IRS|Tags: , , , |Comments Off on Helping S Corporations Avoid Unreasonable Compensation Audits

2015 Tax Planning Guide

New Year 2015 And Clock

 

Our 2015 Tax Planning Guide is now available. This online guide will give you access to updated tax and financial planning information throughout the year. Feel free to forward it to friends and family who you think might find it interesting or helpful. We hope this guide will prove to be a convenient resource for you throughout the year. Just a few of the topics covered in the guide are:

 

  • Roth IRA conversions
  • Bunching income and expenses as a year-end planning strategy
  • Planning for restricted stock and stock options
  • Planning for real estate investments
  • Succession and retirement planning for business owners
  • Charitable giving strategies

 

If you have any questions after reviewing the information presented, please do not hesitate to […]

GO-Biz Launches California Business Portal

In July 2015, the California Governor’s Office of Business and Economic Development (GO-Biz) launched the California Business Portal, a one-stop website for business owners to find information and assistance regarding operating a business in the state of California.  It provides information to business owners regarding starting a new business, obtaining permits and licenses, various tax incentives, local resources and more.  Click here to view the new portal.