Tuesday, June 26, 2018

Sexual Harassment and businesses

In today's climate with numerous sexual harassment claims filed, it should be noted that all companies must, I repeat must take all sexual harassment issues seriously!  In fact, the IRS is taking sexual harassment so seriously that any business that settles a sexual discrimination or harassment claim cannot deduct the payment or attorney fees that are subject to a non-disclosure agreement on their tax return.

Friday, June 8, 2018

Sale of Home Requirements

If you own your home but are unable to take care of yourself, here is something to think about. A taxpayer who has owned and used their home as their principle residence for at least 2 out of the 5 years leading up to the sale can exclude $250,000 or $500,000 if married on the gain when the home is sold, however the IRS has lowered the length of use requirement to 1 out of 5 years preceeding the sale for those who are in nursing homes.

Tuesday, May 29, 2018

Tax year 2018

The new Tax Cuts and Jobs Act increased the Standard Deduction for Married Filing Jointly is now $24,000; for Head of Household it is now $18,000 and for Single taxpayers or Married Filing separately, it is $12,000. With these changes, it is expected that more taxpayers will be choosing to take the Standard Deduction instead of itemizing their deductions.

For those taxpayers who still choose to itemize their deductions, it is important to note that an entire category of expenses are no longer deductible as itemized deductions in 2018.  Wage-earners who have qualified to deduct unreimbursed employee expenses in the past, need to be aware that these items are no longer deductible.  One of the most common of these is union dues.  Other items such as uniforms and professional licenses and training paid for by the employee are not deductible either.

If you are concerned that these changes will result in higher taxes for you in 2018, then it may be advisable to review your income tax withholding from your wages. Making adjustments to the amount of your withholding now can help avoid a liability and possible interest and penalties being due for the year. Taxpayers can also make estimated tax payments to correct this situation. The tax professionals at Ken R. Ashworth & Associates are available to assist you with your tax planning needs.

Wednesday, May 23, 2018

Starting A New Business

Starting a new Business can be very exciting and daunting endeavor.  There are few things you will want to think about when formatting a new business.

The key to obtaining financing for your business, whether through a banking institution or private investors is to have a good concise business plan. A good business plan consists of a company description, an executive summary, a market analysis and a financial projection and financial breakdown.

A budget is pivotal when preparing to start a business. You can set and achieve profit goals, track expenses and estimate your revenue as well as be estimating your cash flow to pay for expenses and required purchases such as equipment and materials.

Remember to seek advice from professionals on the entity formation of your business.  Tax planning is very important part of your business whether you form an LLC or an S-Corporation or a C-Corporation. You will want to form the entity that is the most tax advantageous for your situation.

These are just a few things to think about when starting your new business.

Disclaimer- This article has been prepared by Ken Ashworth & Associates and is provided for informational purposes only.  This material does not provide legal, Tax, regulatory or accounting advice. Prior to entering into any proposed transaction, you should determine, in consultation with your own advisors, the potential economic, legal and tax risks.