If you’re a partner in a business, you may have come across a situation that gave you pause. In a given year, your tax returns may show that you owe more on partnership income than was distributed to you from the partnership in which you’re a partner. Why is this? The answer lies partnership taxation. … Continue reading “Why Do Partners Sometimes Report More Income On Tax Returns Than They Receive In Cash?”
Month: July 2020
Reopening Concepts: What Business Owners Should Consider
A widely circulated article about the COVID-19 pandemic, written by author Tomas Pueyo in March, described efforts to cope with the crisis as “the hammer and the dance.” The hammer was the abrupt shutdown of most businesses and institutions; the dance is the slow reopening post COVID. We are figuratively tiptoeing out to see whether … Continue reading “Reopening Concepts: What Business Owners Should Consider”
Even If No Money Changes Hands, Bartering Is A Taxable Transaction
During the COVID-19 pandemic, many small businesses are strapped for cash. They may find it beneficial to barter for goods and services instead of paying cash for them. If your business gets involved in bartering, remember there are small business tax considerations. That is that the fair market value of goods that you receive in … Continue reading “Even If No Money Changes Hands, Bartering Is A Taxable Transaction”
Does Your Business Have A Unique Selling Proposition?
Many business owners — particularly those who own smaller companies — spend so much time trying to stay competitive in business by focusing on eliminating weaknesses. Doing such, they never fully capitalize on their strengths. One way to do so is to identify and explicate your unique selling proposition (USP). Give It Some Thought In … Continue reading “Does Your Business Have A Unique Selling Proposition?”
Businesses: Get ready for the new Form 1099-NEC
There’s a new IRS form for business taxpayers that pay or receive non-employee compensation. Beginning with tax year 2020, payers must complete Form 1099-NEC, Non-employee Compensation. Payers are to report any payment of $600 or more to a payee. UPDATE: the new 1099-NEC Form has been revised. Why The New Form? Prior to 2020, Form … Continue reading “Businesses: Get ready for the new Form 1099-NEC”
6 Key IT Questions To Ask In The New Normal
The sudden shutdown of the economy in March because of the COVID-19 pandemic forced many businesses to rely more heavily on technology. Some companies fared better than others with improving IT systems. Many businesses that are taking an informal approach to their IT sourcing strategy are discovering that their systems aren’t as robust and scalable … Continue reading “6 Key IT Questions To Ask In The New Normal”
Steer Clear of the Trust Fund Recovery Penalty
If you own or manage a business with employees, you may be at risk for a severe tax penalty. This is known as the “Trust Fund Recovery Penalty:” it applies to the requirement of businesses to withhold Social Security and income taxes from its employees’ wages. Because the taxes are considered property of the government, … Continue reading “Steer Clear of the Trust Fund Recovery Penalty”
Assessing Work Productivity As You Cope With The Pandemic
The COVID-19 crisis is affecting not only the way many businesses operate, but also in assessing work productivity. How can you tell whether you’re getting enough done when so much has changed? There’s no easy, one-size-fits-all answer, but owners should ask the question so you can adjust expectations and business objectives accordingly. Impact of Remote … Continue reading “Assessing Work Productivity As You Cope With The Pandemic”
SBA Reopens EIDL Program to Small Businesses and Nonprofits
Just last week, the Small Business Administration (SBA) announced that it has reopened the Economic Injury Disaster Loan (EIDL) and EIDL Advance program. These EIDL loan applications are for eligible applicants and companies affected by the COVID-19 pandemic. The EIDL program offers long-term, low-interest loans to small businesses and nonprofits. If your company hasn’t been … Continue reading “SBA Reopens EIDL Program to Small Businesses and Nonprofits”