Happy New Year
A new year symbolizes a fresh new start. We create personal goals to help us eat healthier, exercise more, and improve our spending habits. Many times, business owners start the new year off with plans to become better organized and more profitable. Here are a couple of ways to help your business achieve those goals. […]
Partnership or Corporation?
Selecting an entity type can be confusing. The following is a brief summary of how income from a partnership may be taxed. Since no two situations are the same, always call a professional for insight into your specific circumstances. Unlike a corporation, a partnership is not a taxable entity. Rather, each partner is taxed directly […]
Tennessee Victims of Severe Storms, Tornadoes and Flooding Granted Tax Relief (TN-2020-01)
The president has declared a federal disaster area in Tennessee. The disaster is due to severe storms, tornadoes and flooding, which began on March 3, 2020. The disaster area includes: Davidson Putnam Wilson Thus, taxpayers who live or have a business in the disaster area may qualify for tax relief. Tennessee Filing Deadlines Extended The […]
Hiring Family Members
Hiring family members One of the advantages of someone running their own business is hiring family members, which can provide a deduction for compensation paid. When including family members in business operations, certain tax treatment and employment tax rules apply. Both spouses carrying on a trade or business. If spouses carry on a business together […]
Standard Mileage Rates
Businesses generally can deduct the entire cost of operating a vehicle for business purposes. Alternatively, they can use the business standard mileage rate, subject to some exceptions. The deduction is calculated by multiplying the standard mileage rate by the number of business miles traveled. Self-employed individuals also may use the standard rate, as can employees […]
Pass-through Income Deduction
Non-corporate taxpayers may deduct up to 20 percent of domestic qualified business income from a partnership, S corporation, or sole proprietorship. (Code Sec. 199A deduction) A limitation based on wages paid, or on wages paid plus a capital element, is phased in for taxpayers with taxable income above a threshold amount. The deduction is not allowed for […]
Starting a Business in Tennessee
A glance into the processes of starting a business in Tennessee: We see people every month, if not every week, starting a new business. In most cases, we are helping the client understand the basics of the different types of entities and what best suites them based on their needs and desired outcome of the […]
Extensions and Failure to File Penalties
Many taxpayers every year run out of time before the deadline in April to file their taxes on time. This extension of time to file a complete and accurate return does not give the taxpayer an extension of time to pay. The following is a list of items that taxpayers should know when extending their […]
529 Plans for 2018
Beginning in 2018, you can save more for a child’s education as a result of changes to qualified tuition programs (529 plans). You can use a 529 plan to pay up to $10,000 per year, per child, for K-12 tuition. The 2017 Tax Cuts and Jobs Act modified the rules for 529 plans to help […]
Important dates for September 2018
Individuals If you pay quarterly estimates, pay the 3rd quarterly estimate by using 1040-ES or logging into the IRS’ website and pay by September 15th. Corporations Deposit 3rd quarter estimates by September 15th using 1120-W. Partnerships For calendar-year return, file the Form 1065 by the 15th day of the month if an extension was filed. […]
