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Returning Value Blog

Nick Wheeler, CPA

Recent Posts

Taking Your Spouse on a Business Trip? Can You Write off the Costs?

Posted by Nick Wheeler, CPA on Feb 21, 2024

A recent report shows that post-pandemic global business travel is going strong. The market reached $665.3 billion in 2022 and is estimated to hit $928.4 billion by 2030, according to a report from Research and Markets. If you own your own company and travel for business, you may wonder whether you can deduct the costs of having your spouse accompany you on trips.

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Posted in Business Tax

Update on IRS Efforts to Combat Questionable Employee Retention Tax Credit Claims

Posted by Nick Wheeler, CPA on Feb 05, 2024

The Employee Retention Tax Credit (ERTC) was introduced back when COVID-19 temporarily closed many businesses. The credit provided cash that helped enable struggling businesses to retain employees. Even though the ERTC expired for most employers at the end of the third quarter of 2021, it could still be claimed on amended returns after that.

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Posted in Business Tax

A Company Car Is a Valuable Perk but Don't Forget About Taxes

Posted by Nick Wheeler, CPA on Dec 04, 2023

One of the most appreciated fringe benefits for owners and employees of small businesses is the use of a company car. This perk results in tax deductions for the employer as well as tax breaks for the owners and employees driving the cars. (And of course, they enjoy the nontax benefit of using a company car.) Even better, current federal tax rules make the benefit more valuable than it was in the past.

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Posted in Individual Tax, Business Tax

The Social Security Wage Base for Employees and Self-Employed People Is Increasing In 2024

Posted by Nick Wheeler, CPA on Oct 25, 2023

The Social Security Administration recently announced that the wage base for computing Social Security tax will increase to $168,600 for 2024 (up from $160,200 for 2023). Wages and self-employment income above this threshold aren’t subject to Social Security tax.

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Posted in Business Tax

Spouse-Run Businesses Face Special Tax Issues

Posted by Nick Wheeler, CPA on Sep 21, 2023

Do you and your spouse together operate a profitable, unincorporated small business? If so, you face some challenging tax issues.

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Posted in Business Tax

Overhead Allocations: Rising Costs Require a Fresh, Disciplined Mindset

Posted by Nick Wheeler, CPA on Sep 06, 2023

From utilities and interest expense to executive salaries and insurance, many overhead costs have skyrocketed over the last few years. Some companies have responded by passing along the increases to customers through higher prices of goods and services. Is this strategy right for your business? Before implementing price increases, it’s important to understand how to allocate indirect costs to your products. Proper cost allocation is essential to evaluating product and service line profitability and, in turn, making informed pricing decisions.

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Posted in Business Advisory

Corporate Officers or Shareholders: How Should You Treat Expenses Paid Personally?

Posted by Nick Wheeler, CPA on Aug 09, 2023

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 financially troubled corporation.

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Posted in Business Tax

What Happened With the Debt Limit?

Posted by Nick Wheeler, CPA on Jul 18, 2023

The issue of raising the debt limit has been resolved, at least until January 2025, and we can all breathe easier now that the United States can continue to pay its debts. Hopefully, in the future, Congress will find a way to eliminate this boondoggle or at least work around it, as was done under 1979’s Gephardt Rule.

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Posted in Business Advisory

Why Some Small Businesses Are Switching to Tax-Basis Reporting

Posted by Nick Wheeler, CPA on Jul 11, 2023

Accrual-basis financial statements are considered by many to be the gold standard in financial reporting. But with the increasing cost and complexity of today’s accounting rules — particularly the updated lease guidance that went into effect last year — some private companies are seeking a simpler alternative to U.S. Generally Accepted Accounting Principles (GAAP). The solution for some is to switch from accrual to income tax-basis reporting.

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Posted in Business Advisory

Advantages and Disadvantages of Claiming Big First-Year Real Estate Depreciation Deductions

Posted by Nick Wheeler, CPA on Jun 14, 2023

Your business may be able to claim big first-year depreciation tax deductions for eligible real estate expenditures rather than depreciate them over several years. But should you? It’s not as simple as it may seem.

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Posted in Business Tax

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