One of the hardest things to do as a parent is to leave your child in someone else’s care so that you can go back to work. Sometimes, preparing for the cost of that care can be nearly as difficult. Some care centers can cost more than in-state tuition at a university.
We often think that having a home in multiple states is a great idea, and sometimes we contemplate working while traveling between these homes. In some cases, our jobs take us to multiple locations. What happens when we work in multiple states throughout the year?
The Tax Cuts and Jobs Act of 2017 has led to changes in the way companies choose to be taxed. Prior to the tax reform, many businesses were required to use the accrual method of accounting. But with the change in tax law, businesses with $25 million or less in annual revenue over the prior three years can use the cash method. More businesses are choosing the cash method of accounting instead of the previous accrual method, but what is the difference between cash and accrual methods of accounting?
“You should sell those.” It’s a phrase many people have heard when showing someone their crafts. When does a hobby become a business? Is it when you first start selling your items? Is it when you first turn a profit? When can you start deducting expenses against the income?
In recent years, raising money online through third-party backers, or crowdfunding, has grown in popularity. Originally utilized mostly by musicians, filmmakers and for other creative endeavors, it has now become a more widespread method of raising money for a trip, medical expense, or startup, and is often a quicker and easier alternative than conventional fundraising. Often the creator of a campaign puts little thought to the tax ramifications before launching and collecting the funds. With this increase in utilization, the business of its taxation has become an increasing question. While Congress and the IRS have not addressed crowdfunding income specifically, applying standard tax principles and common sense may help when talking through the issues surrounding taxable crowdfunding income and deciding how to report and pay taxes on it.
With the close of 2018, we begin to look ahead to 2019 and ensuring that we set ourselves up for a good tax outcome at year end. There are many things to consider as you move through the tax year and some require pre-planning to ensure maximum benefit.
Vehicle purchases are one of the largest expenses for most families. With an increase in people choosing to lease instead of buy, what are the differences? As with most decisions in life, taxes should only be one of the considerations. A few of the non-tax considerations on buying or leasing a business vehicle: number of miles you drive each year, how long you keep a car, how much do you want to spend on your monthly payments?
In 1993, then President Bill Clinton sought to find a support system to aid the rapid growth in the workforce, which was increasingly made up of women with families. The Family and Medical Leave Act (FMLA) was passed “to balance the demands of the workplace with the needs of families.” This Act allowed both women and men to participate in work, but also protect them if a medical need arose. Under this Federal Act, employers with fifty of more employees were required to provide up to twelve weeks to attend to serious health conditions of the employee, a parent, spouse or child. It also provided for pregnancy and care of a newborn, adopted child or foster child. In order to qualify, the employee needed to have worked in the business for at least twelve month and worked at least 1,250 hours over the past twelve months. (In 2008, different requirements and time periods were given to active duty families. This leave was unpaid leave, and merely protected the employee’s right to benefits during the leave and return to their job or one of equal level, compensation and benefits. Note that highly compensated employees have more limited rights when it comes to FMLA.
You had a great idea and now you’ve put it in motion as a business. And while income recognition is easy to determine, qualified business deductions can be a bit harder. So… what are the most common tax deductions for small businesses?
As the holidays near, more and more shoppers are turning to online methods of procuring that special gift. And it makes complete sense. The world of e-commerce opens the buyer up to products that may be unavailable in the local area, and it’s often cost-efficient. With this massive turn in consumer spending, tax systems are struggling to keep up. By now most taxpayers have heard of the South Dakota v. Wayfair ruling that overturned the 1992 Quill case and now imposes sales taxes on retailers with no physical presence in the state, as long as they have a clear connection to state consumers and certain threshold of sales. With this, smaller brick and mortar shops may start to see an increase in their sales again. It will also help local state and municipalities by bringing in more revenue through the taxation.