Newsletters

Buy-Sell Agreements

Buy-Sell agreements are important to every business owner and there is a high probability that, if not done right, they will lead to disputes and possible litigation.  Buy-sell agreements are agreements among business owners, or between the owners and the business itself, setting forth the price and terms of the purchase of an owner’s interest when certain trigger events occur. After a trigger event occurs the parties have conflicting interests. So buy-sell agreements should be created before any trigger event occurs. Possible trigger events: Shareholder quits, is fired, retires, or…

Read More

Self-Directed IRAs: Handle With Care

IRAs — both traditional and Roth — are powerful tools for financial, retirement, and estate planning. But what if you’re not satisfied with your IRA’s performance? One way to “turbocharge” its benefits is to use a “self-directed” IRA, which is permitted to hold alternative investments that offer higher potential returns. That’s an attractive feature, but self-directed IRAs also present some dangerous tax traps that can wreak havoc on your plans. What are the advantages? Traditionally, IRAs offer a limited menu of stocks, bonds or mutual funds. Self-directed IRAs — which…

Read More

Time to Revisit the R&D Tax Credit?

The federal research tax credit (R & D credit) has been available for 35 years, but many companies fail to take advantage of its significant cash-flow benefits. Some companies may believe that the credit doesn’t apply to them; that it’s only available to biotech companies or those that conduct laboratory research. In fact, it’s potentially available to any business that invests in developing new products, improving processes or techniques, creating software, and a variety of other innovations. In addition, some companies may have been turned off by the credit’s historically…

Read More

Tax Filing Reminders

November 15th  2018 calendar-year Exempt Organizations (Form 990) on extension is due December 17th  Due date for calendar-year corporations to pay the fourth installment of 2017 estimated income tax December 31st  Deadline to complete 2017 tax-free gifts up to $15,000 per recipient Deadline for paying expenses you want to be able to deduct on your 2017 and cash basis income tax return

Read More

Tax Filing Reminders

October 1st 2017 calendar-year Form 1041 tax return for estates and trusts on extension is due October 15th 2017 calendar-year C corporation income tax return (Form 1120) on extension is due Individual income tax return on extension is due 2017 gift tax return (Form 709) is due 2017 FinCEN Form 114 Report of Foreign Bank and Financial Accounts is due

Read More

Over 70 ½? Get a Tax Benefit from Contributions without Itemizing

It’s been estimated that the number of people who itemize will fall by more than half in 2018 because of changes made by the Tax Cuts and Jobs Act (TCJA). That’s bad news for many charitable givers, but those who are age 70½ or older can continue to gain a tax benefit from their charitable contributions even if they don’t itemize. The key is to make the gift by way of a qualified charitable distribution (QCD) to make annual contributions from an IRA and reduce distributions by a commensurate amount….

Read More

20% QUALIFIED BUSINESS INCOME DEDUCTION UPDATE

New, anticipated guidance has been provided with the proposed regulations under IRC § 199A, taking effect in 2018.  The proposed regulations address application of IRC § 199A in terms of definitions, rules for aggregation of trades or businesses, rules for classifying specified service trades or businesses (SSTB), and specific parameters for limitations. To recap some of the basics, IRC § 199A allows for eligible taxpayers to receive a deduction of up to 20% of the combined business income of individuals with qualified business income (QBI) from a partnership, LLC, S…

Read More

Oklahoma Changes to 2018 Income Tax

With all the emphasis on the many Federal tax changes for 2018, we also need to be aware of some changes related to your Oklahoma personal income tax return. For Federal purposes, personal exemptions were eliminated for 2018. However, Oklahoma will continue to allow personal and dependent exemptions of $1,000 per exemption. An additional exemption of $1,000 may be allowed for taxpayer or spouse who is blind at the close of the tax year. Oklahoma also allows an additional Oklahoma exemption of $1,000 for each taxpayer or spouse who is…

Read More

Tax-exempt Organizations to Pay UBIT for Providing Parking Benefits to Employees

The Tax Cuts and Jobs Act (the Act) passed in late 2017 has brought a collection of changes to almost every business. Although many tax cuts, such as reducing the corporate tax rate from 35% to a flat rate of 21%, are widely and warmly welcomed, the Act trims down some tax breaks that businesses have depended on for many years, including qualified transportation benefits. Qualified transportation benefits are defined as: • A ride in a commuter highway vehicle between the employee’s home and work place; • A transit pass;…

Read More

Supreme Court’s Internet Sales Tax Ruling

The Virtual Age Demands Change In the modern era in which we live, interpretation of laws is in flux. The virtual world creates new areas of query for lawmakers, courts, businesses, and their advisors. The interpretation of the Commerce Clause of the U.S. Constitution has been up for debate in recent years due to the increasing demand for goods in the online market place. Consumers are purchasing at an increasing rate through remote sellers who, due to their lack of physical presence in the purchaser’s state, have not collected and…

Read More