Family businesses need succession plans, too
Those who run family-owned businesses often underestimate the need for a succession plan. But you can’t assume an ownership transition will go smoothly just because everyone involved is family. Some family members may want to continue with the business; others may want to sell it. A thorough succession plan will answer questions about future ownership and any potential sale so successors don’t have to scramble or squabble during an emotionally difficult time. The key to making any plan work is to clearly communicate it with all stakeholders. We can help.
Check deductibility before making year-end charitable gifts
With tax law changes going into effect in 2018 and many rules applying to the charitable deduction, it’s a good idea to check deductibility before making year-end donations. First, total up your potential itemized deductions for the year, including the donations you’re considering. The total must exceed your standard deduction (which has been nearly doubled by the TCJA) for year-end donations to provide a tax benefit. Next, make sure the organization is qualified: http://apps.irs.gov/app/eos. Finally, meet the Dec. 31 delivery deadline. Contact us with questions.
2019 Q1 tax calendar: Key deadlines for businesses and other employers
Here are a few key tax-related deadlines for businesses during Q1 of 2019. JAN. 31: File 2018 Forms W-2 with the Social Security Administration and provide copies to employees. Also provide copies of 2018 Forms 1099-MISC to recipients and, if reporting nonemployee compensation in Box 7, file, too. FEB. 28: File 2018 Forms 1099-MISC if not required earlier and paper filing. MAR. 15: If a calendar-year partnership or S corp., file or extend your 2018 tax return. Contact us to learn more about filing requirements and ensure you’re meeting all applicable deadlines.
Tax reform expands availability of cash accounting
The cash method of accounting offers greater tax-planning flexibility, allowing some businesses to defer taxable income. Under the TCJA, if your business’s average gross receipts for the previous three tax years are $25 million or less, you generally will now be eligible for the cash method for federal tax purposes, regardless of how your business is structured, your industry or whether you have inventories. Newly eligible businesses should determine whether the cash method would be advantageous and, if so, consider switching methods. Contact us to learn more.
Treasury: Be Aware of New Collections Scam
Taxpayers who receive a letter from a scammer or have questions about their state debts should call Treasury’s Collections Service Center at 1-866-218-7224. A customer service representative can log the scam, verify outstanding state debts and provide flexible payment options.
Senate Panel Approves Critical Changes to Michigan’s Paid Sick Leave Mandate
Minutes ago, the Senate Government Operations Committee reported out legislation to make changes to existing Mandated Paid Leave legislation adopted in September. It is now critical that you and your fellow manufacturers urge your elected officials to support Senate Bill 1175. Without changes, the Earned Sick Time Act will impose the most extreme paid sick […]
Devote some time to internal leadership development
Internal leadership development is practiced when owners and executives devote time to mentoring current managers and employees who might one day become leaders. Try these tips: Sit down with current and potential leaders to bolster strengths and address shortcomings. Invite them to meetings they might not otherwise attend, including those with vendors and customers. Get them involved with an industry trade group or local chamber of commerce. When they’re ready, give them real decision-making authority on a project. Contact us for further info and ideas.
Does prepaying property taxes make sense anymore?
Prepaying property taxes has been a popular year-end tax-planning strategy. But does it still make sense? For many, particularly those in high-tax states, it doesn’t. The TCJA made two changes that affect this strategy: 1) nearly doubling the standard deduction, so fewer taxpayers will itemize, and 2) putting a $10,000 cap on state and local tax deductions. If you no longer itemize or you’ve already used up your $10,000 limit (on income or sales taxes or on previous property tax installments), prepaying property tax will provide no benefit. Contact us for details.