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So far TDT Staff has created 41 blog entries.

Choosing the Right Accounting Method for Tax Purposes

By |2018-08-31T10:05:14+00:00August 31st, 2018|Accounting, Cash Flow, Change, IRS, Tax Planning, Tax Reform|

The Tax Cuts and Jobs Act (TCJA) liberalized the eligibility rules for using the cash method of accounting, making this method, which is simpler than the accrual method, available to more businesses. Now the IRS has provided procedures a small business taxpayer can use to obtain automatic consent to change its method of accounting under [...]

Keep it SIMPLE: A tax-Advantaged Retirement Plan Solution for Small Businesses

By |2018-08-30T12:44:06+00:00August 30th, 2018|Preparation, Saving|

If your small business doesn’t offer its employees a retirement plan, you may want to consider a SIMPLE IRA. Offering a retirement plan can provide your business with valuable tax deductions and help you attract and retain employees. For a variety of reasons, a SIMPLE IRA can be a particularly appealing option for small businesses. [...]

The TCJA Prohibits Undoing 2018 Roth IRA Conversions, but 2017 Conversions are Still Eligible

By |2018-08-30T09:24:16+00:00August 30th, 2018|Change, Saving, Tax Reform|

Converting a traditional IRA to a Roth IRA can provide tax-free growth and tax-free withdrawals in retirement. But what if you convert your traditional IRA, which is subject to income taxes on all earnings and deductible contributions, and then discover you would have been better off if you hadn’t converted it? Before the Tax Cuts [...]

Why the “Kiddie Tax” is More Dangerous Than Ever

By |2018-08-30T08:28:58+00:00August 29th, 2018|Change, IRS, Tax Planning, Tax Reform|

  Once upon a time, some parents and grandparents would attempt to save tax by putting investments in the names of their young children or grandchildren in lower income tax brackets. To discourage such strategies, Congress created the “kiddie” tax in 1986. Since then, this tax has gradually become more far-reaching. Now, under the Tax [...]

Do You Need to Adjust Your Withholding?

By |2018-08-28T16:57:05+00:00August 28th, 2018|Accounting, Change, Deductions, IRS, Preparation, TAX, Tax Planning|

If you received a large refund after filing your 2017 income tax return, you’re probably enjoying the influx of cash. But a large refund isn’t all positive. It also means you were essentially giving the government an interest-free loan. That’s why a large refund for the previous tax year would usually indicate that you should [...]

Business Deductions for Meal, Vehicle, and Travel Expenses

By |2018-08-24T13:56:03+00:00August 24th, 2018|Accounting, Deductions, IRS, Saving, Tax Reform, Tips|

A Critical Requirement Subject to various rules and limits, business meal (generally 50%), vehicle and travel expenses may be deductible, whether you pay for the expenses directly or reimburse employees for them. Deductibility depends on a variety of factors, but generally the expenses must be “ordinary and necessary” and directly related to the business. Proper [...]

Close-Up on the New QBI Deduction’s Wage Limit

By |2018-08-24T13:53:05+00:00August 24th, 2018|Change, Deductions, Home, Tax Reform|

The Tax Cuts and Jobs Act (TCJA) provides a valuable new tax break to noncorporate owners of pass-through entities: a deduction for a portion of qualified business income (QBI). The deduction generally applies to income from sole proprietorships, partnerships, S corporations and, typically, limited liability companies (LLCs). It can equal as much as 20% of [...]

Does Your Business Have to Begin Collecting Sales Tax on All Out-of-State Online Sales?

By |2018-08-24T13:51:12+00:00August 23rd, 2018|Change, Compliance, Tax Reform|

You’ve probably heard about the recent U.S. Supreme Court decision allowing state and local governments to impose sales taxes on more out-of-state online sales. The ruling in South Dakota v. Wayfair, Inc. is welcome news for brick-and-mortar retailers, who felt previous rulings gave an unfair advantage to their online competitors. And state and local governments [...]

Choosing the Best Business Entity Structure Post-TCJA

By |2018-08-22T14:58:38+00:00August 22nd, 2018|Advisory, Change, TAX, Tax Planning, Tax Reform|

For tax years beginning in 2018 and beyond, the Tax Cuts and Jobs Act (TCJA) created a flat 21% federal income tax rate for C corporations. Under prior law, C corporations were taxed at rates as high as 35%. The TCJA also reduced individual income tax rates, which apply to sole proprietorships and pass-through entities, [...]

The Tax Cuts and Jobs Act Changes Some Rules for Deducting Pass-Through Business Losses

By |2018-08-24T13:55:12+00:00August 22nd, 2018|Accounting, Change, Preparation, TAX, Tax Reform|

It’s not uncommon for businesses to sometimes generate tax losses. But the losses that can be deducted are limited by tax law in some situations. The Tax Cuts and Jobs Act (TCJA) further restricts the amount of losses that sole proprietors, partners, S corporation shareholders and, typically, limited liability company (LLC) members can currently deduct [...]