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  What’s a fiscal tax year?A fiscal tax year consists of 12 consecutive months that don’t begin on January 1 or end on December 31 — for example, July 1 through June 30 of the following year. The year doesn’t necessarily need to end on the last day of a month. It might end on the same day each year, such as the last Friday in March. Flow-through entities (partnerships, S corporations and, typically, limited liability companies) using a fiscal tax year must file their return by the 15th day of the third month following the close of their fiscal year. So, if their fiscal year ends on March...
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Key Tax 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. July 31 Report income tax withholding and FICA taxes for second quarter 2017 (Form 941), and pay any tax due. (See exception below.)File a 2016 calendar-year retirement plan report (Form 5500 or Form 5500-EZ) or request an extension.August 10 Report income tax withholding and FICA taxes for second quarter 2017 (Form 941), if you deposited on time and in full all of the associated taxes due.September 15If a calendar-year C corporation, pay the third installment of 2017 estimated income taxes.If a calendar-year S corporation or partnership that filed an automatic six-month extension:File a 2016 income tax return (Form 1120S, Form...
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Victim of a Disaster, Fire or Theft? Take advantage of the Casualty Tax loss deductions

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.If you suffered damage to your home or personal property last year, you may be able to deduct these “casualty” losses on your federal income tax return. A casualty is a sudden, unexpected or unusual event,...
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Career Opportunity at CBAuthentix Business Services

We are currently looking for an Intern for the summer season.  We have had great success with our internship program throughout the years. Please send resumes to This email address is being protected from spambots. You need JavaScript enabled to view it.. Accounting Intern   Essential Duties and Responsibilities:PURPOSEThe Accounting Intern is responsible for following the directions of Accounting Manager in all areas relating to the preparation of clients’ personal and business tax returns. This position will assist in (1) the timely and accurate preparation and review of all client personal and business tax returns.  (2) At the request of the Accounting Manager will interact with other accounting staff in scheduling and delivering timely and accurate information.  This position will work within the tight deadlines.REPORTS TO: ACCOUNTING MANAGERRESPONSIBILITIES & DUTIESYou have to work as part of a team, perform your assigned duties and behave in a professional manner. After all, your job as an intern is preparation for the time when you, too, can become like your supervisors...
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What you need to know about Education Credits

You, your dependent, or a third party pays for your qualified education expenses for your higher education. You must be an enrolled at an eligible educational institution. And in closing, the qualifying student must be yourself, your spouse, or a dependent listed on your tax return. There are two education credits that you might qualify for. The credits include American Opportunity Tax Credit and the Lifetime Learning Credit.  However, you may only take one tax credit per year, not both.The American Opportunity Tax Credit is for those individuals who are in the first four years of higher education. The student must pursue a recognizable degree and be enrolled for at least half the time at their academic institution at the beginning of current tax year. However, if you already claimed this credit or the Hope Credit for more than four years you will be in ineligible. Also, if you were convicted of...
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2 Apps That You Should be Using

The integration of mobile applications has enabled businesses to provide more value and connect better with their customers. Companies such as Square Inc. and Google have teamed up with Intuit to integrate their own personal software into QuickBooks Online.  Two of the applications, in which I have identified below, have played a major role in contributing to my businesses’ success over its most recent years.                        Square Inc.Quick, easy & painless is how I would best describe Jack Dorsey’s mobile payment company.  Through an app on your phone, you can swipe a customer’s credit card using a small “Square” credit card reader on the bottom of your phone using the headphone jack. If you’re a small business always on the go, you can now have your customer’s swipe their credit cards using Square Inc and it will immediately show up on...
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NJ is Raising Gas Prices November 1st, 2016

If you live in the Tri-State area, I am sure you are well aware of how much cheaper the gas prices are in New Jersey in relation to it's surrounding states. The reason why gas prices are so low is because of how cheap the NJ state gas tax is.  Although, compared to New York, the price of gas in New Jersey makes many New Yorker's jealous, but soon residents of the Garden State are going to be feeling like they filling up in New York.After a long battle between state leaders, Governor Chris Christie agreed to raise the gas tax in order to generate funds for the Transportation Trust Fund. Starting on November 1st, the gas tax will increase to 23 cents a gallon. Governor Christie states that this tax will be very beneficial to the state and will help pay for improvements to bridges, highways, and railroads. This tax increase would...
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Get in the Cloud with QuickBooks Online

 Intuit continues to improve the lives of small business owners. Instead of saving all your files on your computer, Inuit is using the cloud to make accessing your financials simpler.  In the past, small business owners would buy the desktop version of QuickBooks for a few hundred dollars but now with QuickBooks online, you can access your financials on the go and for as little as $10 per month. Since the form of payment for QuickBooks online is only a small subscription fee, it has become very popular with small business owners. Forget investing hundreds of dollars on the desktop website when you get QuickBooks Online for cheaper with more features and utilize the latest technology.QuickBooks Online adds a new feature almost every month. With each feature, it is bound to save you time and maybe even money. Less than a month ago, Intuit added features that included inventory bundles, email updates,...
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