Should your business be a proprietorship, corporation, partnership, or some other entity? Each form has advantages and disadvantages. Business situations change, and so do tax laws. This time of year may be a good time to review your business’s current structure to be sure it is still your best choice. Chosing the proper form of entity is a critical choice...
Tags: form of entity
Category: Taxes
The IRS announced in a field memorandum in 2010 that it will be stepping up its audit activity with auto dealerships with respect to inventory issues. This increased activity has continued. The issue here is that under the law, resellers of tangible personal property with annual average sales of $10 million or more are required to capitalize a portion of their...
Tags: auto dealerships
Category: Taxes
Working in the service industry often means part of your income comes in the form of tips. Keeping records of your tips is a necessary part of reporting this income for tax purposes, but do you have a good system in place to do this? Proper tip reporting has three components: Keeping a daily record. Reporting tips to your employer....
This is a question I am often asked. The basic reason why you would want to value your company would be for two good reasons; you either are in a multiple partner business and it is part of a buy-sell agreement or if you are in fact ready to sell your business. In either case, you will need to determine...
Tags: business valuation
Category: Business
After years of putting money in your 529 college savings plan, you’re ready to start taking withdrawals to pay tuition bills. Do you know the rules for keeping the withdrawals tax-free? Here’s an overview of three types of 529 plan distributions. Qualified withdrawals – These are generally for tuition, fees, books supplies and equipment. These are generally tax free but...