Don’t forget: 2017 tax filing deadline for pass-through entities is March 15
The federal income tax filing deadline for calendar-year partnerships, S corporations and LLCs treated as partnerships or S corporations for tax purposes is March 15, about a month earlier than the deadline for personal returns. If you haven’t filed your partnership or S corporation return yet, you may be thinking about an extension. An extension can be tax-smart if you’re missing critical documents or an unexpected life event is preventing you from devoting sufficient time to your return now. But there are additional considerations. Contact us to learn more.
Size of charitable deductions depends on many factors
Whether you’re claiming charitable deductions on your 2017 return or planning your donations for 2018, be sure you know how much you’re allowed to deduct. Your deduction depends on not only the amount you give, but also what you give (for example, cash, property or services), whether your total donations for the year exceed certain income-based limits, whether you receive a benefit from the charity, and even how the charity uses the gift. Other rules and limits also apply, and the TCJA could affect your deductions for your 2018 donations. Contact us to learn more.
7 ways to prepare your business for sale
Succession planning can be a complex, delicate matter involving family members and a long transition out of the company. Another approach is to simply sell and move on. If you’re leaning this way, there are many ways to prepare: Develop or update your business plan and ensure your management team is ready to move forward without you. Upgrade IT systems so your company is “plug and play.” Obtain a professional valuation and optimize your balance sheet. Get ready for plenty of paperwork, too, and don’t forget to consider the tax impact. Contact us for help.
What’s your mileage deduction?
For 2017, you might be able to deduct miles driven for business, medical, moving and charitable purposes. For 2018, there are significant changes to some of these deductions under the Tax Cuts and Jobs Act (TCJA). Here are the standard mileage rates: Business: 53.5 cents (2017), 54.5 cents (2018). Medical: 17 cents (2017), 18 cents (2018). Moving: 17 cents (2017), 18 cents (2018). Charitable: 14 cents (2017 and 2018). But the rules are complex. And under the TCJA you might not be able to deduct business or moving miles on your 2018 return. Contact us for details.
Sec. 179 expensing provides small businesses tax savings on 2017 returns — and more savings in the future
If you purchased qualifying business property by Dec. 31, 2017, you may be able to take advantage of Sec. 179 expensing on your 2017 tax return. Sec. 179 allows eligible taxpayers to deduct the entire cost of qualifying new or used depreciable property and most software in Year 1, subject to various limitations. For tax years that began in 2017, the maximum Sec. 179 deduction is $510,000. For the 2018 tax year, the Tax Cuts and Jobs Act increases the maximum Sec. 179 deduction to $1 million. Many rules apply, so contact us to learn more.