One of the enacted laws of Tax Cuts and Jobs Act (TCJA) in 2017 is the State and Local Tax (SALT) Deduction Cap, limiting the federal tax deduction an individual can claim for their state and local taxes paid. Under the SALT cap, individual taxpayers who itemize their deductions on their federal income tax returns… Continue reading PTE Tax: A SALT Cap Relief
The Internal Revenue Service (IRS) collects taxes on a pay-as-you go system, meaning taxes must be paid when income is earned. For those who are small business owners or self-employed individuals whose income is not subject to withholding tax, you may have to pay the quarterly estimated taxes to avoid underpayment penalties and interest. September… Continue reading 3Q Estimated Tax: Deadline and New Interest Rate!
A business may sell one or some of its properties for several reasons. It can be for asset retirement, technology upgrading, or just possible cash inflows. Regardless of the reason, there are tax implications and IRS guidelines that must be observed in selling a business asset. The IRS rules differ based on the property category… Continue reading Let’s make a deal! Sale of Business property
As per IRS (Internal Revenue Service), depreciation is a tax deduction that recovers the cost of your fixed assets over time as you use it for your business. It is also a way to gradually enjoy its relative tax benefit since depreciation also decreases your overall tax liability on your annual return. In this blog,… Continue reading Depreciation: Methods and MACRS
As a rule, you must capitalize the costs of fixed assets, intangible assets, and major improvements in your balance sheet instead of claiming it as a full deduction in your tax return. However, this doesn’t mean that you won’t be able to recover the costs of your investments. You can still benefit from that tax… Continue reading Depreciation and Amortization: A Tax Deduction for Your Business