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Category Archives: Small business Tax

Tax Changes Anticipated By Year End

As you know, towards the end of 2014 many commonly used income tax deductions and credits were retroactively re-instated to the beginning of 2014, only to expire again as of December 31, 2014. 50% bonus depreciation for qualifying new assets, increased section 179 first year write-off, as well as the credit for increasing research and...

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‘Loan Payments’ Can Be Taxable Corporate Distributions to Shareholders

There can be negative tax consequences when purported loan payments are recast as corporate distributions to shareholders. In some cases, the courts have ruled that withdrawals from two closely held corporations were constructive corporate distributions rather than loan proceeds and repayments. As such, the withdrawals triggered taxable dividends and capital gains for the shareholders. Corporate Distribution Basics...

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2015 Year-End Tax Planning Tips for Small Businesses

Virtually all small business owners are frustrated with our current tax system. In fact, five out of today’s Top 10 small business concerns relate to state and federal tax issues, according to the Small Business Problems and Priorities survey released by the National Federation of Independent Business (NFIB), a small business advocacy group. Small businesses are...

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Employ Joint Tax Liability for Leased Employees

A company can use workers provided through an employee leasing company or professional employer organization (PEO) to save money on benefits such as health and life insurance, as well as administrative costs. Here’s How it Works An employee leasing firm hires people for your company and pays all the related costs for them. You then pay the...

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Must Joint Activities Be Treated as Partnerships?

For federal income tax purposes, an unincorporated joint venture or other contractual or co-ownership arrangement under which several participants conduct a business or investment activity and split the profits is generally treated as a partnership. This general rule applies even if the joint venture or arrangement is not recognized as a separate legal entity (apart from...

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