A. For 2019, the standard mileage rates are as follows. 58 cents per mile for business miles (up from 54.5 cents for 2018). 20 cents per mile driven for medical or moving purposes (up from 18 cents for 2018). 14 cents per mile driven in service of charitable organizations (unchanged from 2018). The standard mileage […]
business expenses
What types of property are eligible for the Section 1031 exchange?
A. Normally when appreciated business assets such as real estate are sold, tax is owed on the appreciation. But there’s a way to defer this tax: a Section 1031 “like kind” exchange. However, the Tax Cuts and Jobs Act (TCJA) reduces the types of property eligible for this favorable tax treatment. What is a like-kind […]
What documents does my business have to keep in what type of recordkeeping system?
A. There’s no one way to keep records. In fact, the IRS states on its website that “you may choose any recordkeeping system suited to your business that clearly shows your income and expenses.” However, it’s important to keep thorough and accurate records. If you have incomplete or no records and get audited by the […]
What’s the best business entity structure after the TCJA?
A. There’s no easy answer to this question, though the entity choice considerations have undergone some changes due to the new tax law. For tax years beginning in 2018 and beyond, the Tax Cuts and Jobs Act (TCJA) created a flat 21% federal income tax rate for C corporations. Under prior law, C corporations were […]
What are some of the most significant changes in the TCJA for businesses?
A. The new tax reform law, commonly called the “Tax Cuts and Jobs Act” (TCJA), is the biggest federal tax law overhaul in 31 years, and it has both good and bad news for taxpayers. Below are highlights of some of the most significant changes affecting business taxpayers. Except where noted, these changes are effective […]
Can I deduct business travel when it’s combined with a vacation?
A. If you travel for business, combining a business trip with a vacation to offset some of the cost with a tax deduction can sound appealing. But tread carefully, or you might not be eligible for the deduction you’re expecting. General rules Business travel expenses are potentially deductible if the travel is within the United […]
Holiday Party Deductions
Holiday Party Deductions If you’re hosting a holiday get together for employees, you can slide right by the regular entertainment rules. Instead, you can deduct 100% of your costs – and you don’t even have to talk about business. Just make sure that all your employees are invited. To get the full write-off, you can’t […]
Start Up Costs – Costs Of Organizing A Corporation
Start Up Costs – Costs Of Organizing A Corporation The costs of organizing a corporation are direct costs of creating the corporation. Clients can amortize an organizational cost only if it meets all of the following requirements: It is for the creation of the corporation; It is chargeable to a capital account; The client could […]
Start Up Costs – Deductions
Start Up Costs – Deductions – How To Handle Clients Expenses For Starting A New Business With new small businesses proliferating-on the Web, in the home, or wherever-tax return preparers frequently have to grapple with the issue of business start-up expenses. The rules for deducting ordinary and necessary business expenses do not apply to start-costs. […]
Home Office – Sale Of Residence
Home Office – Sale Of Residence Q. We bought our house for $378,000 five years ago. I installed an office in the basement for my business at a cost of about $25,000. I claimed home office deductions the last four years. Now we’re selling the house for $391,000. Since I’m selling at a $12,000 loss, […]