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Typically, it’s better to defer tax. One way is through controlling when your business recognizes income and incurs deductible expenses. Here are two timing strategies that can help businesses do this: Defer income to next year. If your business uses the cash method of...

They say timing is everything. And, when it comes to year-end tax planning, this expression certainly holds true for income and expenses. Know the basics When you don’t expect to be subject to the alternative minimum tax this year or next, deferring income to next year and...

This holiday season taxpayers are receiving a “gift” from Washington, D.C. It’s the Protecting Americans from Tax Hikes Act of 2015 or, simply, the PATH Act. It does more than just extend expired tax provisions for another year. The bipartisan deal makes about...

A recent U.S. Tax Court decision drives home the important point that current deductions aren’t allowed for most expenses incurred while a new business is still in the start-up phase. Other decisions have dealt with the same issue in recent years. So, the proper federal...

Generally, businesses are limited to deducting 50% of allowable meal and entertainment (M&E) expenses. But certain expenses are 100% deductible, including expenses: For food and beverages furnished at the workplace primarily for employees, Treated as employee compensation,...

Most companies cover their employees’ business expenses by reimbursing them for their actual expenses or by paying a travel or mileage allowance. Such arrangements are subject to strict tax rules concerning what qualifies as a legitimate reimbursement arrangement and what is...

You probably know that miles driven for business purposes can be deductible. But did you know that you might also be able to deduct miles driven for other purposes? The mileage deduction rates vary depending on the purpose and the year. Mileage Deduction Rates Business: 56 cents...

If you’re contemplating buying a second home by the ocean, mountains or warmer surroundings, you’re not alone. Approximately 717,000 vacation homes were purchased in 2013. That equals about 13 percent of the total homes bought last year — their highest market...

Profit Generating Ideas Reduce the amount of discounts you give. Depending on profit margins, you may have to generate $15 of sales to recover $1 of discounts. Implement better inventory control. Inventory isn’t an asset. It’s a liability. You can’t stop the...