How S Corporations Can Save on Federal Employment Taxes

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If you own an unincorporated small business, you may be getting fed up with high self-employment (SE) tax bills. One way to lower your SE tax liability is to convert your business to an S corporation. SE Tax Basics Sole…

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Quick Tax Tip: Don’t Overlook Miscellaneous Itemized Deductions

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Many people itemize deductions on Schedule A of their tax returns, rather than taking the standard deduction. Your tax preparer will generally advise you to do so if your allowable itemized deductions exceed the standard deduction. Most itemized deductions are…

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Quick Tip: ‘Loan Payments’ Can Be Taxable Corporate Distributions to Shareholders

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There can be negative tax consequences when purported loan payments are recast as corporate distributions to shareholders. In some cases, the courts have ruled that withdrawals from two closely held corporations were constructive corporate distributions rather than loan proceeds and repayments….

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What to Do with Impossible Employees? Try Cleaning House.

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When psychiatrist Mark Goulston asked several successful CEOs to name the single most important key to their success, he expected them to refer to their “vision” or their “mission.” But, independent of one another, the CEOs advised: Recognize destructive no-win…

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Lessons from Tax Court: Defaulting on Retirement Plan Loans May Cause Taxable Distributions

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In one decision, the U.S. Tax Court concluded that the IRS was correct in determining that a taxpayer who failed to make timely payments on loans from her employer’s qualified retirement plan defaulted on the loans and received deemed taxable…

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Cash Flow is King for ALL Businesses

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In today’s economic environment, one major concern for businesses is maintaining a healthy cash flow. If your company is feeling the squeeze of a tight economy — and tight credit — its ability to manage cash flow is critical. Enterprises…

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A Special Holiday Wish To You

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As the Christmas & Hannukah Holidays approach, we want to extend our warm wishes and many thanks for continuing to work with us at Munoz & Company and, most importantly, the great sustaining relationships we’ve made with you. We pride…

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Tax Court Disallows Deductions for Costs to Expand General Knowledge

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Here’s part two of last week’s case study on Business Deductions for Education Costs: In another recent Tax Court decision, a married couple (a college professor and librarian) weren’t allowed to deduct as unreimbursed employee business expenses the costs of…

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Lessons From Tax Court: MBA Costs Can Be Deductible, But Don’t Get Carried Away!

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As an employee or self-employed individual, can you deduct the cost of getting an MBA? What about expenses incurred to improve your general knowledge? Two recent U.S. Tax Court decisions provide answers to these questions. But, first, here’s some background…

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There’s Still Time To Set Up a Retirement Plan for 2016

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Saving for retirement can be tough if you’re putting most of your money and time into operating a small business. However, many retirement plans aren’t difficult to set up and it’s important to start saving so you can enjoy a…

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