A business asset is property you acquire to help produce income for your company. This can be durable equipment from computers to office furniture to tractors. Depreciation is a way of allocating the cost of the asset over its expected usable life by expensing a portion of the cost over several years. This accounting method […]
Tag: Tax Planning
Tax Savings Made Easy: Cost Segregation for Commercial Properties
If you are an owner of commercial real estate, you likely have heard of cost segregation. But perhaps you have not been informed of the incredible tax benefits it offers and how much it can improve your business’s cash flow. Many business owners have utilized cost segregation studies to save huge sums of money on […]
How to Calculate and Report Imputed Income Correctly
Imputed income is defined as the cash value of a benefit that is not part of your employees’ salaries. Even though the benefit — like a gym membership — isn’t received in cash, it’s still taxable based on its cash value. Imputed income was developed to ensure that workers don’t reduce the tax that would […]
Protecting Your Interests: Drafting A Strong Buy-Sell Agreement
You want to protect your company against disruptive, harmful, and nonproductive owners, which may include divorced spouses, competitors, and disgruntled former employees. You also believe that your estate requires protection. The parties—your partners and yourself—enter into a buy-sell agreement with aligned, or at least not sufficiently misaligned, interests, making discussion of the business and valuation […]
How to Steer Clear of Costly Business Tax Pitfalls
When the IRS looks at your tax forms, the tax agency uses a computer to compare what has been reported to it with what you have reported in terms of income. This is often carried out via 1099 forms — namely the 1099-MISC — which lists nonemployee compensation. There’s also the 1099R form, which pertains […]