Be aware of the tax consequences before selling your home
In many parts of the country, summer is peak season for selling a home. If you’re planning to put your home on the market soon, don’t neglect to consider the tax consequences. The TCJA preserves the home sale gain exclusion, so if you’re selling your principal residence, you can exclude up to $250,000 ($500,000 for joint filers) of gain, as long as you meet certain tests. A loss generally won’t be deductible, but if part of your home is rented out or used exclusively for your business, the loss attributable to that portion might be. Contact us with any questions.
4 ways to encourage innovation in customer service
Business innovation usually focuses on coming up with a revolutionary product or service. But it can apply to customer service, too. How? First, don’t fear failure: If a bold initiative fails, heed the lessons learned. Also, link compensation to employees’ contributions. Create a formal program offering cash rewards or other gifts to innovative thinkers. When someone does come up with an actionable idea, praise that individual company wide. Last, and perhaps most simply, just pretend you’re a customer to get a firsthand perspective on what you could do better.
Can you deduct business travel when it’s combined with a vacation?
This summer are you going on a business trip in the U.S. and tacking on some vacation days? Are you a business owner or self-employed? You may be able to deduct some of your expenses. Transportation costs to and from the business activity location may be 100% deductible if the primary reason for the trip is business. Out-of-pocket expenses for business days are generally fully deductible. Examples include lodging, meals (subject to the 50% disallowance rule), seminar and convention fees, and cab fare. Additional rules and limits apply. Contact us with questions.
Cost control takes a total team effort
They say you’ve got to spend money to make money. But that doesn’t mean business owners should accept high operational costs. Cost control is a formal management technique through which you evaluate operations and isolate activities with excessive expenses. It forces you to ask tough questions about the efficiency of your business, how much you’re paying for supplies or materials, and whether technological upgrades are needed. This isn’t something you can do on your own. You’ll need a total team effort from managers and advisors. Let us be a part of that team.
IRS Audit Techniques Guides provide clues to what may come up if your business is audited
IRS examiners use Audit Techniques Guides (ATGs) to prepare for audits, and small business owners can use them, too. Many ATGs target specific industries, such as construction. Others address issues that frequently arise in audits, such as executive compensation and fringe benefits. Although ATGs were created to enhance IRS examiner proficiency, they also can help small businesses ensure they aren’t engaging in practices that could raise red flags with the IRS. For more information on ATGs and red flags that may be relevant to your business, contact us.
Do you need to adjust your withholding?
If you received a large refund after filing your 2017 income tax return, you’re probably enjoying the influx of cash. But it also means you essentially made the government an interest-free loan. This would usually indicate that you should consider reducing your withholding. But 2018 is a little different: To reflect TCJA changes, the IRS updated the withholding tables, generally reducing the amount withheld. The new tables might cause some taxpayers to not have enough withheld. Contact us for help determining whether you should adjust your 2018 withholding.
Say, just how competitive is your business anyway?
To be successful, a business must be competitive. Is yours? Here are some ways to assess this: First, examine your operating environment. Anything from severe weather to a sudden change in buying trends could affect competitiveness. Next, identify important tangible and intangible resources. Technological obsolescence, for example, could change everything. Then look at the strength of your leadership team. Flagging employee morale could leave you struggling. Last, evaluate relationships with suppliers, customers and regulators. Make sure all are in good shape.
Get started on 2018 tax planning now!
With the April 17 individual income tax filing deadline behind you (or with your 2017 tax return on the back burner if you filed for an extension), you may be hoping to not think about taxes for the next several months. But for maximum tax savings, now is the time to start tax planning for 2018. It’s especially critical to get an early start this year because the Tax Cuts and Jobs Act has substantially changed the tax environment. We can help you determine how the new law affects you and what strategies you should implement to minimize your tax liability.
A review of significant TCJA provisions affecting small businesses
Now that small businesses and their owners have filed their 2017 income tax returns (or extensions), it’s a good time to review the Tax Cuts and Jobs Act (TCJA) provisions that may significantly impact their taxes for 2018 and beyond. Depending on your entity type, either the new 21% corporate tax rate or the new 20% qualified business income deduction may substantially cut your taxes. And all businesses need to be aware of the breaks the TCJA enhances and the ones it limits or eliminates. The key to maximizing your tax savings is to begin 2018 tax planning now.
A Building Security Checklist for Crime Prevention
Surprising as it may seem, many experts believe that a well-maintained property can deter crime. Why? Because a poorly maintained building demonstrates that its owner is no longer able or willing to control his property. It thus becomes an invitation to any criminal who wants to seize control.