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Compensation? Or Dividend in Disguise?

Mon, Feb 5th 2018
When your C corporation has a profitable year, do you take more salary or pay yourself a year-end bonus? Since you are pivotal to your company's success, paying yourself more in the good years only makes sense. Increasing or decreasing your compensation from year to year based on company performance can also help manage your company's cash flow -- and the amount of income taxes it has to pay. Tax Impact A corporation may deduct compensation as a business expense if it is reasonable in amount.... Read More »

TODAY Marks the Start of the 2017 Tax Filing Season

Mon, Jan 29th 2018
If you are an individual tax client, you should have received your 2017 Client Tax Organizer in the mail. Please review the organizer carefully and get in touch if you have any questions. To prepare and submit your return by the applicable deadline, we need to receive the information requested in your organizer no later than March 1, 2018. As we prepare your return, additional information may be required by our office, so it is best to submit your records as soon as possible and not wait until... Read More »

Tracking Down Interest Deductions

Mon, Jan 22nd 2018
Is the interest you pay on borrowed funds tax deductible? As with many tax-related questions, the answer is, "It depends." Different Types Different categories of interest expenses have different deductibility rules. Personal interest, such as interest paid by consumers on their personal credit cards, is generally not deductible. Student loan interest of up to $2,500 is potentially deductible (requirements apply). Qualified residence interest on a mortgage of up to $1 million used to buy, build... Read More »

Who's a Dependent?

Mon, Jan 15th 2018
To most of us, the word "dependent" is synonymous with "child," but the IRS's definition is a little different. For tax purposes, a dependent must be either a "qualifying child" or a "qualifying relative." To be a qualifying child, the child must: Live in your home for over half the year Be your child, stepchild, adopted child, or foster child or your brother, sister, or step-sibling (or a descendant of any of these) Be under 19 or a student under 24 and be younger than you (or be permanently... Read More »

The Biggest Tax Reform Law in Over 30 Years - the Nutshell Version

Tue, Jan 9th 2018
It really happened - the President has signed the biggest tax reform law in over 30 years. When you file your 2018 tax returns — about a year from now — your tax return will look very different. And because most changes don’t happen until then, we have some time to learn about the changes and plan for next year. Here are a few of the biggest changes that may affect you. Tax rate changes: Both individual and corporate rates have changed. The maximum individual rate is reduced to 37% and the... Read More »