Getting wise to the rise of “smart” buildings
If your business is considering upgrading its facility, or moving to or constructing a new one, be prepared to encounter “smart” buildings. A smart building is one equipped with sensors that gather and track information about energy usage. With this data, the building’s energy consumption can be more accurately tracked and regulated to lower costs. When buying or building a new facility, factor the long-term advantages of smart technology into the price. When leasing, inquire about whether and how smart features have been added. Contact us for more info.
2 major tax law changes for individuals in 2019
Most TCJA provisions went into effect in 2018 and apply through 2025 or are permanent, but two major changes affect individuals beginning in 2019: 1) While the TCJA reduced the medical expense deduction threshold from 10% of adjusted gross income to 7.5%, the reduction applies only to 2017 and 2018. So for 2019, the threshold returns to 10%. 2) For divorce agreements executed (or, in some cases, modified) after Dec. 31, 2018, alimony payments won’t be deductible by the payer but will be excluded from the recipient’s taxable income. Contact us for details.
4 business functions you could outsource right now
It’s never been easier to outsource. Outsourcing can help you stick to your mission and build your bottom line. One option is IT: A good provider can keep your systems updated and secure. Payroll/HR is another possibility. Today’s compliance requirements are complex and variable. You could outsource customer service to avoid the turnover problems typical of this department, or you might outsource accounting services to a provider capable of handling the challenges of bookkeeping, payables, receivables and financial reporting. We can help you explore outsourcing.
Is there still time to pay 2018 bonuses and deduct them on your 2018 return?
There aren’t too many things businesses can do after a year ends to reduce tax liability for that year. But you might be able to pay employee bonuses for 2018 in 2019 and still deduct them on your 2018 tax return. To be eligible for this favorable tax treatment, you must be an accrual-basis taxpayer and the bonus liability must have been fixed by the end of the tax year, which requires passing the “all-events test” and may necessitate a bonus pool arrangement. If you’re a calendar-year company, you must pay the bonuses by March 15. Contact us to learn more.
Economic damages: Recovering what was lost
A business can suffer economic damages arising from a variety of illegal conduct. Common examples include breach of contract, patent infringement and commercial negligence. The goal of any economic damages case is to make your company “whole” again. This involves answering one critical question: Where would you be today “but for” the defendant’s alleged wrongdoing? A financial expert, working with other advisors, can choose the right method, as well as apply discounts and adjustments, to build a damages claim that will stand up. Contact us for more information.
A refresher on major tax law changes for small-business owners
The dawning of 2019 means the 2018 income tax filing season will soon be upon us. After year end, it’s generally too late to take action to reduce 2018 taxes. Business owners may, therefore, want to shift their focus to assessing whether they’ll likely owe taxes or get a refund when they file their returns this spring, so they can plan accordingly. With the biggest tax law changes in decades (under the TCJA) generally going into effect beginning in 2018, most businesses and their owners will be significantly impacted. Contact us for a refresher on the changes.
A review of significant TCJA provisions impacting individual taxpayers
Now that 2019 has begun, there isn’t too much you can do to reduce your 2018 income taxes. But it’s smart to begin preparing for filing your 2018 return. Because the TCJA, signed into law at the end of 2017, likely will have a major impact on your 2018 taxes, it’s a good time to review the most significant provisions affecting individual taxpayers. For example, it generally reduces tax rates. And it nearly doubles the standard deduction and expands the child tax credit. But it also reduces or eliminates many breaks. Contact us to review the changes affecting you.
Business owners: An exit strategy should be part of your tax planning
If you own a business, an exit strategy should be part of your tax planning so that taxes don’t trip you up when you retire or leave the business for some other reason. An exit strategy is a plan for passing on responsibility for running the company, transferring ownership and extracting your money from the business. Common exit options include a buy-sell agreement, succession within the family, a management buyout, an ESOP and a sale to an outsider. Each involves a variety of tax and nontax considerations. Contact us to discuss your exit strategy.
Make sure the price is right with market research
One way to help ensure your company makes the most of the year ahead is to re-evaluate its pricing strategy. Price changes shouldn’t occur in a vacuum; they require market research. Consider approaches such as focus groups, online surveys, social media feedback and free trials. Conduct competitive intelligence, too: There are ethical and effective ways to keep tabs on competitors. With the right data, you can decide whether to cut prices or perhaps charge a premium. We can help you analyze the pertinent factors and make an optimal decision.
You may be able to save more for retirement in 2019
Retirement plan contribution limits are indexed for inflation, and most have increased for 2019. So you may have opportunities to increase your retirement savings. Limits for 401(k)s, SIMPLEs and IRAs increase by $500, to $19,000, $13,000 and $6,000, respectively. Catch-up contributions (for taxpayers age 50 or older) remain unchanged, however. They’re $6,000, $3,000 and $1,000, respectively. Additional factors may affect how much you’re allowed to contribute. For more on how to make the most of tax-advantaged retirement-saving opportunities in 2019, contact us.