Casualty loss deductions: You can claim one only for a federally declared disaster
The rules for writing off personal casualty losses on a tax return have changed for 2018 to 2025. Specifically, taxpayers generally can’t deduct losses unless the casualty event qualifies as a federally declared disaster. (The rules for business or income-producing property are different.) Another factor that now makes it harder to claim a casualty loss is that you must itemize deductions to claim one. For 2018 to 2025, fewer people will itemize, because the standard deduction amounts have been significantly increased. We can help you navigate the complex rules.
How entrepreneurs must treat expenses on their tax returns
Have you recently started a new business or are you contemplating starting one? Keep in mind that not all start-up expenses can be deducted on your federal tax return right away. Some expenses probably must be amortized over time. You might be able to make an election to deduct up to $5,000 currently, but the deduction is reduced by the amount by which your total start-up costs exceed $50,000. You can also deduct $5,000 of the organizational costs of creating a corporation or partnership. Contact us. We can help you maximize deductions for a start-up business.
Health systems increase operating margins through diversification strategies
Health systems can create a risk-adjusted portfolio of initiatives that leverages their ecosystem and competitive advantages.
The value of assessing a supply chain’s group purchasing organization contracts
GPOs can help drive savings and utilization, but it’s worth re-examining the contracts every so often to get the most out of the relationship.
Three questions you may have after you file your return
After filing a tax return, you may have questions. 1. Where’s my refund? Go to irs.gov and click on “Refund Status” to find out. 2. How long must I save tax records? You should generally save them for 3 years after filing (although keep the actual returns indefinitely). But there are exceptions to this general rule. 3. If I forgot something on my return, can I still claim a refund? You can generally file an amended return to claim a refund within 3 years after the date you filed the original return or 2 years of the date you paid the tax, whichever is later.
Present yet unaccounted for: The problem of presenteeism
Absenteeism has long troubled many companies. But there’s a flip side to employees failing to show up to work: “presenteeism.” This is when someone comes in unwell or puts in excessive overtime. Although paid sick days may help with physical ailments, employees may hesitate to take a day off for stress or mental health reasons. Explicitly tell them it’s okay to do so and remind employees of supportive services offered through your health plan. Also, discourage the idea that employees must work excessive overtime to prove themselves. Contact us for more info.
Deducting business meal expenses under today’s tax rules
You probably spend a bundle “wining and dining” customers, vendors and employees. Under current tax law, entertainment expenses are no longer deductible. But you can still deduct 50% of the cost of business-related food and beverages, if you meet certain requirements. What if you buy food and beverages at an entertainment event? You can still deduct 50% of the expenses incurred at entertainment events, but only if business was conducted during the event or shortly before or after. And keep receipts that separately state the meal costs. Contact us with questions.
Responding to the nightmare of a data breach
A data breach is every business owner’s nightmare. Without an emergency response plan to handle such a crisis, you’re vulnerable to not only the damage of the attack itself, but also the fallout from your own panicked decisions. These plans generally follow five steps: 1) Call your attorney, 2) engage a digital forensics investigator, 3) fortify your IT systems to prevent further damage, 4) communicate strategically to preserve your reputation and reassure stakeholders, and 5) use credit and IT monitoring services to keep an eye out. Contact us for more info.
Seniors: Medicare premiums could lower your tax bill
Medicare premiums and supplemental insurance can be more expensive than seniors expect. However, some taxpayers may be able to lower their tax bills by deducting Medicare premiums and other qualifying medical expenses. However, it can be difficult to qualify to claim medical expenses on your tax return. For 2019, you can deduct medical expenses only if you itemize deductions and only to the extent that total qualifying expenses exceeded 10% of adjusted gross income. Contact us if you have questions about writing off medical expenses, including Medicare premiums.
Divorcing business owners need to pay attention to tax implications
If you’re getting a divorce, you know it’s a highly stressful time. But if you’re a business owner, tax issues can complicate matters more. For example, you can generally divide most assets, including business ownership interests, between you and your soon-to-be ex-spouse without any federal income or gift tax consequences. When an asset falls under the tax-free transfer rule, the spouse who receives the asset takes over its existing tax basis and existing holding period. Contact us. We can help minimize the adverse tax consequences of settling your divorce.