Sec. 179 expensing provides small businesses tax savings on 2017 returns — and more savings in the future

| Tax Briefs

If you purchased qualifying property by December 31, 2017, you may be able to take advantage of Section 179 expensing on your 2017 tax return. You’ll also want to keep this tax break in mind in your property purchase planning, because the Tax Cuts and Jobs Act (TCJA), signed into law this past December, significantly enhances it beginning in 2018 2017 Sec. 179 benefits Sec. 179 expensing allows eligible taxpayers to deduct the entire cost of qualifying new or used depreciable property and Read more [...]

Tax deduction for moving costs: 2017 vs. 2018

| Tax Briefs

If you moved for work-related reasons in 2017, you might be able to deduct some of the costs on your 2017 return — even if you don’t itemize deductions. (Or, if your employer reimbursed you for moving expenses, that reimbursement might be excludable from your income.) The bad news is that, if you move in 2018, the costs likely won’t be deductible, and any employer reimbursements will probably be included in your taxable income. Suspension for 2018–2025 The Tax Cuts and Jobs Act (TCJA), Read more [...]

A Family Legacy Thrives in Bloomington, Indiana

| Client Spotlight

In 1949 Wayne and Martha Hall started a small sign company out of their garage in downtown Bloomington, Indiana. Since these humble beginnings, Hall Signs, Inc. has grown into one of the largest complete sign manufacturing companies in the country and is Alerding CPA Group’s Winter Crystal Client Spotlight recipient. Based in Bloomington, Indiana, Hall Signs manufactures aluminum traffic signs and sign blanks for municipalities and traffic sign suppliers throughout the United States, as well Read more [...]

Business interruption insurance can help some companies

| Business Briefs

Natural disasters and other calamities can affect any company at any time. Depending on the type of business and its financial stability, a few weeks or months of lost income can leave it struggling to turn a profit indefinitely — or force ownership to sell or close. One way to guard against this predicament is through the purchase of business interruption insurance. The difference You might say, “But wait! We already have commercial property insurance. Doesn’t that typically pay the Read more [...]

TCJA temporarily lowers medical expense deduction threshold

| Tax Briefs

With rising health care costs, claiming whatever tax breaks related to health care that you can is more important than ever. But there’s a threshold for deducting medical expenses that may be hard to meet. Fortunately, the Tax Cuts and Jobs Act (TCJA) has temporarily reduced the threshold.   What expenses are eligible?   Medical expenses may be deductible if they’re “qualified.” Qualified medical expenses involve the costs of diagnosis, cure, mitigation, treatment or prevention of disease, Read more [...]

Basics of the New 20 Percent Business Income Deduction

| Business Miscellaneous, Tax Briefs

By Dave Garrett, CPA, CGMA   If you operate your business as a sole proprietorship, partnership, or S corporation, your 2018 income from these businesses can qualify for some or all of the new 20 percent deduction. You also can qualify for the new 20 percent 2018 tax deduction on the income you receive from your real estate investments, publicly-traded partnerships, real estate investment trusts (REITs), and qualified cooperatives. To qualify for the 20 percent with almost no complications, Read more [...]

Can you deduct home office expenses?

| Tax Briefs

Working from home has become commonplace. But just because you have a home office space doesn’t mean you can deduct expenses associated with it. And for 2018, even fewer taxpayers will be eligible for a home office deduction. Changes under the TCJA For employees, home office expenses are a miscellaneous itemized deduction. For 2017, this means you’ll enjoy a tax benefit only if these expenses plus your other miscellaneous itemized expenses (such as unreimbursed work-related travel, certain Read more [...]

401(k) retirement plan contribution limit increases for 2018; most other limits are stagnant

| Tax Briefs

Retirement plan contribution limits are indexed for inflation, but with inflation remaining low, most of the limits remain unchanged for 2018. But one piece of good news for taxpayers who’re already maxing out their contributions is that the 401(k) limit has gone up by $500. The only other limit that has increased from the 2017 level is for contributions to defined contribution plans, which has gone up by $1,000. Type of limit 2018 limit Elective deferrals to 401(k), 403(b), Read more [...]

7 steps to choosing a successor for your family business

| Business Briefs, Business Miscellaneous

There’s an old saying regarding family-owned businesses: “Shirtsleeves to shirtsleeves in three generations.” It means the first-generation owner started in shirtsleeves and built the company up from nothing but, by the third generation, the would-be owner is back in shirtsleeves with nothing because the business failed or was sold. Although you can’t guarantee your company will buck this trend, you can take extra care when choosing a successor to give your family business a fighting chance. Read more [...]

Don’t be a victim of tax identity theft – File your 2017 return early

| Tax Briefs

The IRS has just announced that it will begin accepting 2017 income tax returns on January 29. You may be more concerned about the April 17 filing deadline or even the extended deadline of October 15 (if you file for an extension by April 17). After all, why go through the hassle of filing your return earlier than you have to?   But it can be a good idea to file as close to January 29 as possible. Doing so helps protect you from tax identity theft.   All-too-common scam   Here’s why early Read more [...]