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Law

New Tax Legislation Limits Pass-Through Income Deduction

New tax legislation, which President Trump will likely be signing into law in the coming days, eliminates the 20 percent pass-through income deduction for what the law refers to as a “specified service trade or business.”  These specified service providers include accountants, lawyers, health professionals, as well as other trades or businesses where the principal…

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Year End Planning

2017 is coming to a close with sweeping new tax legislation on the horizon. While the changes don’t take effect until 2018 (with one minor exception), I want to alert you to some steps you might take before year-end to preserve the best possible tax results. As you explore these ideas, mostly you will find…

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Reasonable

What is Reasonable? Decoding Payroll for S Corporation Shareholders

S Corporation shareholders enjoy limited personal liability and a beneficial pass-through structure; income and losses pass through the corporation and to the owner’s personal tax returns.  With this tax structure, shareholder distributions from an S corporation aren’t treated as self-employment income, hereby avoiding the high self-employment tax rate on their share of the income.  This…

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Washington

Tax Legislation Update

By now most of you know that pending tax reform legislation is underway.  On November 16 the House of Representatives’ passed its version – HR 1: The Tax Cuts and Jobs Act.  Also on November 16, the Senate Finance Committee approved its amendments.  Next week we should see the full Senate’s vote.  As we promised…

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Make Year End Tax Planning a Priority

Make Year-End Tax Planning a Priority

Tax planning is the process of looking at various tax strategy options to determine when, whether, and how to conduct business and personal transactions to reduce or eliminate tax liability.  But why is tax planning so important?  You might be thinking that with potential major changes to the tax code, it’s hard to know what…

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Mirror

Narcissistic Entrepreneur Disorder

Are you better looking than your friends? Are you smarter than the average person? Are you an above average driver? It is human nature to overestimate our knowledge, overrate our attractiveness, and overprize our skills.  One study found that 94% of college professors considered themselves above average in the classroom, while another study found that…

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Top Burbank CPA Firm

What to Find Out When Selecting the Top Burbank CPA Firm

Just because you are a small or mid-size business does not mean that you should not get the expert help needed that helps to keep your business well-organized and gives you a chance to excel. Too many small business owners today get caught up in trying to do everything for themselves and find that there…

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