Does your business have employees who get tips? You may qualify for a tax credit
If you’re an employer with a business where tipping is routine when providing food and beverages, you may qualify for a federal tax credit involving the Social Security and Medicare (FICA) taxes that you pay on your employees’ tip income. The credit is claimed as part of the general business credit. In other words, no credit is available to the extent the tip income just brings the employee up to $5.15 per hour, calculated monthly. Contact the CPA's and business tax advisors for questions about this potentially valuable tax break, tax news and more tax tips!
Nonprofits: Got independent contractors? Get to know Form W-9
If your not-for-profit is shorthanded, you may decide to engage independent contractors to pick up some of the slack. Just make sure you’re collecting the right information. Organizations need a completed Form W-9 for every nonemployee they pay for services. If a contractor doesn’t provide you with a Tax Identification Number or the number is wrong, the IRS may require you to “backup withhold” a portion of payments. Contact the CPA's and business tax advisors at SEK for your tax questions and more tax tips and tax news.
Timing counts when valuing a business
A business’s value may change significantly over time, so it’s important to choose the valuation date carefully. This date serves as a cutoff for the information that can be used to estimate value. In general, events that happen after the valuation date can’t be considered, unless the information was “reasonably known or knowable” on the valuation date. The CPA's and business advisors at SEK can help you determine what’s appropriate based on relevant laws and case facts. Contact us for more tax news and tax tips!
Going global: How your nonprofit can navigate potential obstacles
Are you planning to make 2024 the year your not-for-profit ventures overseas? If you plan to solicit donations, recruit members, employ staffers or sell products in foreign countries, make sure you’ve analyzed potential tax and legal issues, at home and abroad. A cultural advisory committee that includes expatriates can help you navigate new markets. And we can analyze your financials to help ensure the venture is feasible. Contact the CPA's and business advisors at SEK for tax guidance, tax tips and tax news!
Perform an operational review to see how well your business is running
In M&A, business buyers perform operational due diligence to identify the strengths and weaknesses of a target company’s day-to-day activities. Business owners can perform an operational review to glean the same insights. Business buyers typically evaluate three primary areas: production/operations, selling, general & administrative items, and human resources, to determine the reasonability and sustainability of things such as compensation, benefits and staff relations. Contact the CPA's and business tax advisors at SEK for help performing an operational review and more tax tips.
It’s possible (but not easy) to claim a medical expense tax deduction
Can you deduct your out-of-pocket medical costs on your tax return? It depends. Medical expenses can be deducted only to the extent unreimbursed costs exceed 7.5% of your adjusted gross income. Plus, medical costs are deductible only if you itemize, which means that your itemized deductions must exceed your standard deduction. Eligible costs include: hospital bills, health insurance premiums, eyeglasses, hearing aids, most dental work, prescriptions, smoking-cessation programs and some costs of transportation to get to and from medical appointments. Contact the CPA's and business tax advisors at SEK to asses if you can claim a deduction, for more tax tips or to answer any of your tax questions.
SEK announces Manager, Supervisor, Senior, and Marketing promotions
The Members are pleased to announce the following Manager, Supervisor, Senior Staff, and Marketing promotions effective January 1, 2024:
Nonprofits: When are sponsorship and advertising payments subject to tax?
Sponsorship and advertising can provide a real boost to your not-for-profit’s income. However, if sponsors or advertisers receive a “substantial benefit” or if providing benefits isn’t a related business activity, you may owe unrelated business income tax (UBIT). If you’re seeking sponsors or advertisers for your nonprofit and aren’t sure what’s taxable, contact the CPA's and business tax advisors at SEK for tax tips and tax questions.
7 Tips for using QuickBooks online in 2024
QuickBooks Online was built for small businesses. You don’t have to be experts in accounting or technology. QuickBooks Online simplifies the complex process of double-entry accounting, using understandable language and a simple, easy to navigate user interface.
Defer a current tax bill with a like-kind exchange
If you’re interested in selling commercial or investment real estate that has appreciated significantly, one way to defer a tax bill on the gain is with a Section 1031 “like-kind” exchange. With this transaction, you exchange the property rather than sell it. Like-kind exchanges can be an attractive tax-deferred way to dispose of real property if you anticipate a large tax bill and meet the requirements. Contact the CPA's and business tax advisors at SEK if you have tax questions or for more tax tips.