Business Tax
Implementing the $2,500 Expensing Threshold May Not Be Best Practices for Your Business
A capitalization policy is used by a business to set a threshold for determining when a asset purchase should be recorded as a fixed asset (and depreciated), or when the expenditure can be expensed in the current year. The IRS has allowed certain businesses with applicable financial statements with written capitalization policies to establish this…
Read MorePart 1 – How will the Increased Minimum Wage Rate Impact Your Business?
Part 1 – How will the increased minimum wage rate impact your business? Many states have, or are considering, increasing the minimum wage rate. As a business owner and/or manager, it is important that you have a clear understanding of the impact that a wage rate increase has on your operations. This is the…
Read MorePart 2 – Managing a Minimum Wage Rate Increase – Increasing Prices, Sales Volume & Cutting Costs
Part 2 – Managing a Minimum Wage Rate Increase – Increasing Prices, Sales Volume, Cutting Prices, etc. This is the second post in a series of posts relating to dealing with an increase in a minimum wage rate. The first post dealt with estimating the impact that a wage rate increase would have on your…
Read MorePart 3 – Increasing The Minimum Wage Rate: Solution or Problem?
Part 3 – Increasing The Minimum Wage Rate: Solution or Problem? Many states have, or are considering, increasing the minimum wage rate. I’ve written two articles to help business owners/managers analyze the impact a wage rate increase (Part 1), and to discuss some of the primary strategies in dealing with it (Part 2).…
Read More2015 Tax Legislation Passed in Time for Christmas (and for Year-End Tax Planning)
UPDATE: 2015 Tax Legislation Passed on December 18, 2015… just in time for Christmas, and for your 2015 year-end tax planning. I expected Congress to pass legislation extending the 50+ key tax provisions (nick-named “extender tax provisions”), but my expectation was that it would be a one or two year extension. That is what has…
Read MoreTaking the Political Easy Path – Extender Tax Provisions Update
In an earlier post, I discussed the on-going issue with Congress where they continue to extend 50+ key tax provisions (nick-named “extender tax provisions”) for only one or two years, and then the process must be repeated. Why won’t Congress make the changes permanent? Because of politics. Specifically, these changes reduce tax revenue and increase…
Read MoreCongress is Doing Nothing About Taxes… Again!
Updated 11/19/2015: My article below addresses the bigger issue behind the annual tax-extender dance that takes place in Washington DC. Once again, we sit waiting for Congress to punch our card so that we can move off our seats. This is not just a current issue. It is an on-going large problem, and it is…
Read More5 Tips When Calling the IRS – How to Talk to a Real Person
If you need to call the IRS and talk to a person to get help, you most likely are already frustrated and stressed. Placing the call doesn’t help your anxiety level because it is easy to get lost in the myriad of automated responses… “Choose 1 for this”, “Choose 2 for that”, etc. Sometimes you…
Read MoreLooking Great is Not Deductible!
Does your job require you to look great? We have been able to meet some great small business people, including those in sales or leadership positions. To do the job right, the individual needs to look their best. This may mean more expensive clothing, on-going grooming, staying fit, etc. To look your best… to look…
Read MoreSection 179 Deduction
When you purchase property or equipment, you utilize these assets over a period of several years (their “useful life”). Depreciation is the process of expensing or deducting the cost over the useful life of the asset rather than the entire amount in the year of purchase. Illustration of business financials information without depreciation:…
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