Accounting Tips For Entrepreneurs

The Tax Cuts and Jobs Act eliminated the individual mandate requiring individuals to have health insurance or pay a penalty. Some states, however, have instituted their own penalties. In addition this episode also explains how the Premium Tax Credit works.

The Tax Cuts and Jobs Act contains a provision that allows taxpayers to defer significant amounts of capital gains by investing in opportunity some funds. These funds are designed to spur economic development and job creation in distressed communities.

In this episode I address the most typical cash flow issues that arise in small businesses with some suggestions on how to mitigate their impact on your business.

The proper use of a Net Operating Loss can save taxpayers significant dollars. There are, however, a number of hurdles that were thrown in by the 2018 Tax Cuts and Jobs Act. This episode focuses on these new rules.

The purpose of a buy-sell agreement is to facilitate a change in ownership upon the occurrence of certain events. Whether these events are voluntary or involuntary the main objectives of a buy-sell agreement are to make sure remaining owners retain control and departing owners or their families are reasonably compensated for relinquishing their financial interest in the Company.

Most people that start their own business have a passion for their particular product or service, which is what leads to them opening their own business. Many have no idea how to get started and this episode is meant to give you a pathway to opening your business.

Although not typically the first thought on a new owners mind, a business plan will serve as a blueprint on how to run your business and greatly increase your chance for success.

One of the most common questions I am asked is how long must I retain my business records which is normally code for I want to throw some things out and I want you to say it’s okay. This episode sheds some light on this question.

Many individuals use their automobiles in their businesses and this episode extension explains how this is done.

There is always a great deal of discussion on the distinction between short term and long term capital gains and losses. This episode explains how to determine short vs long term capital gain or loss and the tax implication of each.

There are a number of items available in the tax code to assist taxpayers paying for qualified education expenses. Learn about the tax credits and deductions available as well as a way to eliminate penalties on IRA withdrawals before age 59 1/2.

Taxpayers are often confused on which structure they should choose for their business; sole proprietorship, partnership, C corporation, S Corporation or LLC. This podcast unlocks the mystery and discusses the basics of each type.

Although it is very often the largest deduction on taxpayers returns there are a few rules that are not common knowledge and this lack of knowledge can hurt those expecting to be able deduct more than the law allows. This podcast outlines these rules.

One question that I run into quite often is I made a mistake on my tax return and I know I am entitled to more deductions but is amending my return going to raise a red flag? This podcast covers this question as well as some other information that taxpayers considering amending a return should know.

There are a variety of reasons why employers would like to classify workers as independent contractors; no payroll taxes, no benefits such as health insurance, no pension or profit sharing requirements and no minimum wage and hour laws. The IRS would like workers classified as employees to make collection of Social Security ad Medicare taxes easier. Learn how to determine whether workers are independent contractors or employees.

Like-Kind exchanges or 1031 transactions allow taxpayers to dispose of property and defer the gain of the property if certain very stringent rules are followed closely. This podcast discusses these rules.

Since the Tax Cuts and Jobs Act passed when discussing real estate I and most others have concentrated on the new 20% deduction available against rental income. This podcast explains what happens when taxpayers incur a loss and how much is allowed as a deduction on your return.

Now that we are through tax season I would like individuals to take control of their tax situation by estimating next year’s liability and assuring that they are covered through either the use of withholding or estimated income tax payments so there are no surprises next April.

If you own a sole proprietorship, single member LLC or are a partner/member of a multiple member LLC or partnership where all partners and/or members are parents of minor children you may be able to save significant tax dollars.

One of the more common situations I run into is taxpayers selling their principal residences and trying to determine whether they are eligible for the $250,000 ($500,000 in the case of certain married taxpayers) exclusion from the gain on sale. This episode addressed the requirements for exclusion including some of the nuances pertaining to married couples.