Robert Young, Asst. VP with Merrill Lynch, Pierce, Fenner & Smith, Inc., recently sent me a high quality white paper produced by Bank of America/Merrill Lynch discussing Exit Strategies. The paper starts with the fact that "it's never too early to start planning for that transition." Truer words could never be said, especially in relation to businesses owned by the self-employed. There are too many 'what ifs' in life. The effective transition of your business is what is best for your family and your customers. Business owners should look at a strategy that maximizes cashflow as well as value. This [...]
[row] [atbox6] In September of 2013, the IRS released final regulations on the capitalization of tangible property costs. The final regulations provide an important opportunity - the de minimis safe harbor election - that allows eligible businesses to immediately expense certain property that would otherwise have to be capitalized. To qualify for the safe harbor, businesses must have nontax accounting procedures in place at the beginning of the year, under which they expense amounts paid for property costing less than a specified dollar amount or that have a useful life of 12 months or less. The amount that can be [...]
Denise Fisk, EA and Aaron Blau, EA, CPA are attending Intuit's 'QuickBooks In The Cloud' event. Aaron has trouble paying attention, so he thinks 'live tweeting' the event will help. Here's the feed! Tweets about "#QBInTheCloud"
Employer policies regarding owned automobiles must be in place to protect the employer from IRS issues. The following document is a group of policies for employers to choose from when determining how they will handle both employer provided, and employer reimbursed, automobile usage.
What Are Adequate Records? You should keep the proof you need in an account book, diary, log, statement of expense, trip sheets, or similar record. You should also keep documentary evidence that, together with your record, will support each element of an expense. Documentary evidence. You generally must have documentary evidence, such as receipts, canceled checks, or bills, to support your expenses. Exception. Documentary evidence is not needed if any of the following conditions apply. You have meals or lodging expenses while traveling away from home for which you account to your employer under an accountable plan, and [...]
An accountable plan is one under which you reimburse your employee for employment-related expenses. The employee is requiredto “adequately account” for the expenses. This means you must receive an expense record (account book, diary, expense statement, etc.) along with receipts and other documentation indicating the expense amount, time and place, business purpose, and business relationship to anyone else involved (e.g., a client, supplier, etc.). For the plan to qualify as an accountable plan, it must also require the employee to pay back any excess payments received. For example, say you pay $1,000 under an expense account arrangement and the employee [...]
S-Corporations are the preferred entities for any small, closely held active business. The reason for this preference is due to the ability to place a 'cap' on the social security paid for the corporation's owners. S-Corporation owners only pay social security on wages paid, as compared to self-employment taxable entities such as sole proprietorship and partnerships who are required to pay social security on the entirety of the business profits. The effective use of an S-Corporation can save thousands of dollars to a profitable business. There is, however, one key factor in avoiding IRS scrutiny. The S-Corporation cannot pay [...]
Employers and Professionals please take a moment to read the below text concerning a mandate from Healthcare Reform. As an employer this model notification must be given as dictated below to all employees whether you currently provide coverage or not. All companies, regardless of size, are required to notify their employees about the marketplaces. The Deadline for this notification is before October 1, 2013. Please take the time to complete this form and distribute to your employee base the fines for non-compliance can be extensive. Penalties for businesses that don’t comply could reach $100 per worker per day. Additionally after [...]
Effective January 1, 2014, IRS Revenue Ruling 2012-18 provides restaurants guidance concerning the use of automatic gratuities, or 'service charges' charged on the basis of table size. Generally, gratuities are not includable in the income of the establishment and are reported separately by employees. The revenue ruling states that 'auto grats' are considered fees collected by the restaurant and should be included in income. The resulting pay-out to employees should be added to wages and taxed accordingly. The revenue ruling defines a gratuity as one which is paid out subject to the following: the payment must be made free from [...]
As subscribers to the QuickBooks ProAdvisor affiliate program, The Blau Company, Ltd. is proud to offer your clients deeply discounted rates for QuickBooks and other Intuit software. 2013 Professional Adviser Program Order Form Please contact our assigned Intuit Product Specialist, Miguel Velez, via e-mail or phone (214-387-2520)