With Labor Day in the rearview mirror, it’s time to take proactive steps that may help lower your small business’s taxes for this year and next. The strategy of deferring income and accelerating deductions to minimize taxes can be effective for most businesses, as is the approach of bunching deductible expenses into this year or next to maximize their tax value.
Lesley L. Price, CPA
Recent Posts
It's Time for Your Small Business to Think About Year-End Tax Planning
Posted by Lesley L. Price, CPA on Sep 11, 2024
Posted in Business Advisory, Business Tax
Let’s say you own real estate that has been held for more than one year and is sold for a taxable gain. Perhaps this gain comes from indirect ownership of real estate via a pass-through entity such as an LLC, partnership, or S corporation. You may expect to pay Uncle Sam the standard 15% or 20% federal income tax rate that usually applies to long-term capital gains from assets held for more than one year.
Posted in Individual Tax
The Possible Tax Landscape for Businesses in the Future
Posted by Lesley L. Price, CPA on Aug 06, 2024
Get ready: The upcoming presidential and congressional elections may significantly alter the tax landscape for businesses in the United States. The reason has to do with a tax law that’s scheduled to expire in about 17 months and how politicians in Washington would like to handle it.
Posted in Business Tax
Be Aware of the Tax Consequences of Selling Business Property
Posted by Lesley L. Price, CPA on Jul 09, 2024
If you’re selling property used in your trade or business, you should understand the tax implications. There are many complex rules that can potentially apply. To simplify this discussion, let’s assume that the property you want to sell is land or depreciable property used in your business, and has been held by you for more than a year.
Posted in Business Tax
After experiencing a downturn in 2023, merger and acquisition activity in several sectors is rebounding in 2024. If you’re buying a business, you want the best results possible after taxes. You can potentially structure the purchase in two ways:
Posted in Business Tax
“An exemption from UNICAP? And no limitation on the amount of business interest expense I can deduct? Sign me up!”
Posted in Business Tax
Treasury, IRS Release Final Regulations on Elective Pay Election for Energy Tax Credits
Posted by Lesley L. Price, CPA on Mar 19, 2024
The Department of the Treasury and the IRS on March 5 released final regulations (TD 9988) on the elective pay election for certain energy tax credits under IRC Section 6417, added by the Inflation Reduction Act (IRA), which treats the credits as a payment against federal income tax liabilities.
Posted in Business Tax
What's the Best Accounting Method Route for Business Tax Purposes?
Posted by Lesley L. Price, CPA on Feb 12, 2024
Businesses basically have two accounting methods to figure their taxable income: cash and accrual. Many businesses have a choice of which method to use for tax purposes. The cash method often provides significant tax benefits for eligible businesses, though some may be better off using the accrual method. Thus, it may be prudent for your business to evaluate its method to ensure that it’s the most advantageous approach.
Posted in Business Tax
Tax-Favored Qualified Small Business Corporation Status Could Help You Thrive
Posted by Lesley L. Price, CPA on Jan 23, 2024
Operating your small business as a Qualified Small Business Corporation (QSBC) could be a tax-wise idea.
Posted in Business Tax
A taxpayer’s tax accounting methods determine when income is recognized and costs are deducted for income tax purposes. Strategically adopting or changing tax accounting methods can provide opportunities to drive tax savings and increase cash flow. However, the rules covering the ability to use or change certain accounting methods are often complex, and the procedures for changing methods depend on the mechanism for receiving IRS consent — that is, whether the change is automatic or non-automatic. Many method changes require an application to be filed with the IRS prior to the end of the year for which the change is requested.
Posted in Business Tax