Let’s say you own highly appreciated land that’s now ripe for real estate development. If you subdivide it, develop the resulting parcels and sell them off for a hefty profit, it could trigger a large tax bill. In this scenario, the tax rules generally treat you as a real estate dealer. That means your entire … Continue reading “A Tax-Smart Way To Develop & Sell Appreciated Land”
Month: July 2023
Consider Adverse Media Screening To Vet Vendors, Customers & Others
Whether you know it or not, if your business has ever applied for a commercial loan, you’ve likely been subject to “adverse media screening.” Under this commonly used practice, a prospective borrower is “screened against” various media sources to determine whether the person or entity has been a party to any suspicious, unethical or illegal … Continue reading “Consider Adverse Media Screening To Vet Vendors, Customers & Others”
Corporate Officers or Shareholders: How Should You Treat Expenses Paid Personally?
If you play a major role in a closely held corporation, you may sometimes spend money on corporate expenses personally. These costs may end up being nondeductible both by an officer and the corporation unless the correct steps are taken. This issue is more likely to happen with a company facing financial distress. What Can’t … Continue reading “Corporate Officers or Shareholders: How Should You Treat Expenses Paid Personally?”
Use An S Corporation To Mitigate Federal Employment Tax Bills
If you own an unincorporated small business, you probably don’t like the size of your self-employment (SE) tax bills. No wonder! For 2023, the SE tax is now at the painfully high rate of 15.3% on the first $160,200 of net SE income. This includes 12.4% for Social Security tax and 2.9% for Medicare tax. … Continue reading “Use An S Corporation To Mitigate Federal Employment Tax Bills”
Strong Billing Processes Are Critical To Healthy Cash Flow
Once a business is up and running, one fundamental aspect of operations that’s easy to take for granted is billing. Often, a system of various processes is put in place and leadership might consider occasional billing mistakes to be part of the “cost of doing business.” However, to keep your business cash flow strong, it’s … Continue reading “Strong Billing Processes Are Critical To Healthy Cash Flow”
Starting A Business? How Expenses Will Be Treated On Your Tax Return
Government officials saw a large increase in the number of new businesses launched during the COVID-19 pandemic. And the U.S. Census Bureau reports that business applications are still increasing slightly (up 0.4% from April 2023 to May 2023). The Bureau measures this by tracking the number of businesses applying for Employer Identification Numbers. If you’re … Continue reading “Starting A Business? How Expenses Will Be Treated On Your Tax Return”
Solo Business Owner? There’s a 401(k) for that
If you own a successful small business with no employees, you might be ready to set up a self-employed retirement plan. Now a 401(k) might seem way out of your reach — only bigger companies can manage one of those, right? Not necessarily. A Solo 401k for business owners is possible. Two Ways To Contribute … Continue reading “Solo Business Owner? There’s a 401(k) for that”