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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…

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Standard Mileage Rates

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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…

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Pass-through Income Deduction

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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…

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Starting a Business in Tennessee

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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…

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Extensions and Failure to File Penalties

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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…

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529 Plans for 2018

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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…

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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. …

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Accounting Suggestions for New Business Owners

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If you are a small business owner, especially a new one, I’m sure that you have learned from the decisions that you made while getting started.  The following is a short list of suggestions for new entrepreneurs: Choosing your business entity It seems that everyone wants to be an LLC.  Is this right?  What about…

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New Standard Deduction

In late 2017, the President signed into law a tax reform bill that makes major revisions to the United States tax code.  The new law changes the way individuals and businesses will calculate their share of taxes on an annual basis.  One of the most important features of the law that has changed starting in…

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