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CHRISTOPHER BOYER'S BLOG.
Chris is the president at CBAuthentix Business Services, a bookkeeping principal, Enrolled Agent and QuickBooks Pro Advisor.

An unfavorable cost for businesses under the TCJA



Along with tax rate reductions and a new deduction for pass-through qualified business income, the new tax law brings the reduction or elimination of tax deductions for certain business expenses. Two expense areas where the Tax Cuts and Jobs Act (TCJA) changes the rules — and not to businesses’ benefit — are meals/entertainment and transportation. In effect, the reduced tax benefits will mean these expenses are more costly to a business’s bottom line.

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Some tax credits you may not know about that will reduce your 2017 and 2018 tax bill



Tax credits reduce tax liability dollar-for-dollar, potentially making them more valuable than deductions, which reduce only the amount of income subject to tax. Maximizing available credits is especially important now that the Tax Cuts and Jobs Act has reduced or eliminated some tax breaks for businesses. Two still-available tax credits are especially for small businesses that provide certain employee benefits. 

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5 Bookkeeping Tips to start the New Year

 

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With 2018 underway and our New Year's resolutions set, bookkeeping is always a top of business owners lists. Bookkeeping can be a business owner’s nightmare and is often a task that is often pushed to the side until tax time. Bookkeeping is the foundation for your business to maintain its overall success. With a good bookkeeping system in place, you are able to make well thought out business decisions which will hopefully increase earnings. Without a good, well-kept and maintained system, things tend to slip through the cracks and end up costing you money in the long run. We have found a way to simplify the bookkeeping process through automation which will save you time and money!

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Getting around the $25 deduction limit for business gifts



At this time of year, it’s common for businesses to make thank-you gifts to customers, clients, employees and other business entities and associates. Unfortunately, the tax rules limit the deduction for business gifts to $25 per person per year, a limitation that has remained the same since it was added into law back in 1962. Fifty-five years later, the $25 limit is unrealistically small in many business gift-giving situations. Fortunately, there are a few exceptions.

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The ins and out of tax on income investments

 

Many investors, especially more risk-averse ones, hold much of their portfolios in “income investments” — those that pay interest or dividends, with less emphasis on growth in value. But all income investments aren’t alike when it comes to taxes. So it’s important to be aware of the different tax treatments when managing your income investments.

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Timing strategies could become more powerful in 2017




Projecting your business income and expenses for this year and next can allow you to time when you recognize income and incur deductible expenses to your tax advantage. Typically, it’s better to defer tax. This might end up being especially true this year, if tax reform legislation is signed into law. 

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Save more for college through the tax advantages of a 529 Plan

 



With kids back in school, it’s a good time for parents (and grandparents) to think about college funding. One option, which can be especially beneficial if the children in question still have many years until they’ll be starting their higher education, is a Section 529 plan. 

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Larger deduction might be available to businesses providing meals to their employees



When businesses provide meals to their employees, generally their deduction is limited to 50%. But there are exceptions. One is if the meal qualifies as a de minimis fringe benefit under the Internal Revenue Code.

A recent U.S. Tax Court ruling could ultimately mean that more employer-provided meals will be 100% deductible under this exception. The court found that the Boston Bruins hockey team’s pregame meals to players and personnel at out-of-town hotels qualified as a de minimis fringe benefit. 

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Are you a teacher? The ABC's of the Tax Deduction for Educator Expenses




At back-to-school time, much of the focus is on the students returning to the classroom — and on their parents buying them school supplies, backpacks, clothes, etc., for the new school year. But let’s not forget about the teachers. It’s common for teachers to pay for some classroom supplies out of pocket, and the tax code provides a special break that makes it a little easier for these educators to deduct some of their expenses. 

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Saving Tax with Home-Related Deductions & Exclusions




Currently, home ownership comes with many tax-saving opportunities. Consider both deductions and exclusions when you’re filing your 2016 return and tax planning for 2017:

Property tax deduction. Property tax is generally fully deductible — unless you’re subject to the alternative minimum tax (AMT). 

Mortgage interest deduction. You generally can deduct interest on up to a combined total of $1 million of mortgage debt incurred to purchase, build or improve your principal residence and a second residence. Points paid related to your principal residence also may be deductible.

Home equity debt interest deduction. Interest on home equity debt used for any purpose (debt limit of $100,000) may be deductible. But keep in mind that, if home equity debt isn’t used for home improvements, the interest isn’t deductible for AMT purposes. 

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Will Congress revive expired tax breaks?




Most of the talk about possible tax legislation this year has focused on either wide-sweeping tax reform or taxes that are part of the Affordable Care Act. But there are a few other potential tax developments for individuals to keep an eye on.

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A refresher on the ACA's Tax Penalty for Individuals without Health Insurance

             

 

Now that Affordable Care Act (ACA) repeal and replacement efforts appear to have collapsed, at least for the time being, it’s a good time for a refresher on the tax penalty the ACA imposes on individuals who fail to have “minimum essential” health insurance coverage for any month of the year. This requirement is commonly called the “individual mandate.” 

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Operating Across State Lines Presents Tax Risks - Or Rewards

 



It’s a smaller business world after all. With the ease and popularity of e-commerce, as well as the incredible efficiency of many supply chains, companies of all sorts are finding it easier than ever to widen their markets. Doing so has become so much more feasible that many businesses quickly find themselves crossing state lines.
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A refresher on tax related ACA provisions affecting businesses



Now that the bill to repeal and replace the Affordable Care Act (ACA) has been withdrawn and it’s uncertain whether there will be any other health care reform legislation this year, it’s a good time to review some of the tax-related ACA provisions affecting businesses:

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Summer is a good time to start your 2017 tax planning and organization

 

 

You may be tempted to forget all about taxes during summertime, when “the livin’ is easy,” as the Gershwin song goes. But if you start your tax planning now, you may avoid an unpleasant tax surprise when you file next year. Summer is also a good time to set up a storage system for your tax records. Here are some tips:

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Business Sales Tax- Bookkeeping Rules

Maintaining Adequate Records (Hint: What we do!)

Keeping good records of your business operation will help you prepare accurate and complete sales tax returns. Your returns must show gross sales, taxable sales, purchases subject to sales or use tax, sales and use taxes due for the specific locality in which the items or services were delivered to your customers, other special taxes due, and other information. Without a detailed, organized set of books, completing your sales tax return will be merely impossible.

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In College? All you need to know about Education Credits.


 

If you have a child in college, you may be eligible to claim the American Opportunity credit on your 2016 income tax return. If, however, your income is too high, you won’t qualify for the credit- but your child might. There’s one potential downside: If your dependent child claims the credit, you must forgo your dependency exemption for him or her. And the child can’t take the exemption. 

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Choosing between a calendar tax year and a fiscal tax year

 

Many business owners use a calendar year as their company’s tax year. It’s intuitive and aligns with most owners’ personal returns, making it about as simple as anything involving taxes can be. But for some businesses, choosing a fiscal tax year can make more sense

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Key Deadlines Upcoming for Businesses

 

 

 

 

 

 

 

 

 

Here are some of the key tax-related deadlines affecting businesses and other employers during the second quarter of 2017. Keep in mind that this list isn’t all-inclusive, so there may be additional deadlines that apply to you. Contact us to ensure you’re meeting all applicable deadlines and to learn more about the filing requirements. 

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Victim of a Disaster, Fire or Theft? Take advantage of the Casualty loss deduction

This past Wednesday I had the opportunity to attend New York City FDNY 148th Medal Day.  The bravery, courage and strength that these men provide for our city is unbelievable. THANK YOU!  If there is a lesson that I learned throughout my years about fire, it’s never to underestimate a fire.  No matter how big or how small the fire is, get out and as far away from the building as quickly as possible.  Don’t worry about grabbing your personal belongings because the slightest bit of black smoke will knock you out unconscious.  Also, there may be some attractive tax advantages for your property that is lost or damaged that I will discuss in today’s post.

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