Change to the Business Meals Expense Deduction
In March of 2021, Congress enacted the American Rescue Plan that included many modifications to the preparation of 2021 business tax returns. The most significant aspect for businesses under IRS code section 274(n) is the change to the business meals expense deduction from 50% to 100%. There are conditions of course, which we outline below. […]
CARES Act Tax Planning
While many are facing difficult times, our lives and business do not stand still. Tax and financial planning are critical, and we urge our friends to be proactive. The following are some of the more notable provisions that will affect your CARES Act Tax Planning. Tax treatment of Stimulus Check – $1200 Technically, the rebate […]
2020 End of Year Tax Updates
As all of us are dealing with the challenges of a global pandemic, income taxes may be the last thought on your mind. As finances are tight, taking advantage of every deduction is more critical than ever. The following are some 2020 end of year tax updates and some planning advice. Please call us with […]
2019 Tax Preparation: IRS Substantiation of Personal Deductions and Business Expenses
Substantiation is defined as “to prove the truth of, or to support with truth or evidence”. The IRS requires taxpayers to substantiate tax-deductible personal and business expenses with written documentation. The IRS further requires the maintenance of supporting records for specified periods of time for inspection in the event of an audit. With 2019 tax […]
State and Local Tax Deductions: Limitations and Avoidance
State and local tax deductions (SALT) have been a part of the federal income tax code since its inception. Over the years, Congress has added or eliminated related taxes such as motor fuel taxes, sales taxes, and real and personal property taxes. Now they have placed a limit on the deductibility of state and local […]
10 Important Tax Changes for Individual Taxpayers Under the New Tax Law
[vc_row][vc_column][vc_column_text] 1. The Standard Deduction: The standard deduction has been nearly doubled for every filing status. The standard deductions are now: $24,000 for those filing married filing jointly and surviving spouses; $18,000 for those filing head of household; $12,000 for those filing single and married filing separately $1,050 for those filing who are a dependent […]
10 Important Tax Changes for Businesses Under the New Tax Law
The 2017 Tax Cuts and Jobs Act significantly reduced corporate tax rates, created a new business deduction for small businesses with the Qualified Business Income Deduction and modified a myriad of other deductions. The following is a high-level view of some of the more important changes currently placed into law. 1. Statutory Tax Rates The […]
Business Entity Selection
When the time comes to form your business or to change its legal status, making the correct entity selection is of the utmost importance. Sole proprietorships, general partnerships, s-corporations, and c-corporations, to name a few, each come with important legal and tax distinctions that are crucial to consider within your business’ unique needs. Of particular […]
Tips to Prepare for Filing Your 2014 Taxes
It is that time of year again, where your trusted tax advisor reaches out to remind you that the tax man is coming. Pittman PC is ready to help you with all of your tax preparation and planning needs. Below is a review of the landscape affecting the filing your 2014 federal taxes: Individuals Long […]