Recent Tax Court Cases of Interest to Businesses

Court Determines that an Activity Was Engaged in for Profit

Taxpayers who are in business to make a profit can generally deduct related expenses on their tax returns. If the IRS doubts a profit motive exists, it may deem an activity to be a hobby with a limited ability to deduct costs. The burden to prove there’s a profit motive is on the taxpayer. (more…)

Spring Cleaning Your Personal Tax Files

The general rule for retaining federal tax records is three years. That’s because the statute of limitations for the IRS to audit your tax return is typically three years. The statute of limitations starts on the later of 1) the due date for your tax return, or 2) the date on which you file your taxes. (more…)

9 Ways to Bask in Summer Tax Savings

Remember the excitement of the last day of the school year? Many adults have fond childhood memories of being off from school for the summer. But summer break isn’t just for kids. Here are nine potential summertime tax breaks for grown-ups — including many that allow small business owners and individuals to combine tax savings with summertime fun. (more…)

Should You Separate Your Business from Its Real Estate?

Businesses that need real estate to conduct operations, or otherwise hold property, traditionally have put the title to the property in the name of the business itself. But owners are increasingly rethinking this approach. Many are recognizing that any short-term benefits may be outweighed by the tax, liability and estate-planning advantages associated with separating real estate ownership from the business. (more…)

Due Diligence Considerations When Selling a Business

When it comes to selling your business, you must consider the buyer’s perspective — not just your own — to get the deal done. Both sides will require certain due diligence procedures, which take time and patience to get through. Here’s what to expect, including some tax considerations. (more…)

Maintain a Healthy Cash Flow

A major concern for businesses is maintaining a healthy cash flow. While your situation may be on hold for now due to the coronavirus (COVID-19), don’t abandon good principles that will never cease to be important. (more…)

Take Advantage of Tax Breaks for Small Businesses

If you own a small or medium-sized business, it may be eligible for some significant tax breaks that aren’t available for larger entities. Here are three examples to consider as you file your tax return for 2021 and plan for 2022. (more…)

Understanding IRS Audit Guidance

IRS examiners usually do their homework before meeting with taxpayers and their professional representatives. This includes reviewing any relevant Audit Techniques Guides (ATGs) that typically focus on a specific industry or audit-prone business transaction. (more…)

Remote Work May Complicate Your Income Taxes

Remote work has become more common in recent years, and the COVID-19 pandemic has resulted in employers realizing that many jobs can be done from home. Some remote workers even work in a different state than where their employers are based. These employees may have opted to move to states with lower or no income taxes, but they — and other remote employees now working across state lines — may find themselves shouldering unexpected state income tax liabilities. (more…)

SBA Announces EIDL Borrowers Receiving Another Six-Month Deferment

On Tuesday, the U.S. Small Business Administration (SBA) announced another extension on loan repayments for COVID-19 Economic Injury Disaster Loans (EIDL). This additional deferment allows small businesses and not-for-profits that received EIDL funds to defer on initial loan payments until 30 months after the date of the note. (more…)