Accounting Tips for Entrepreneurs

Many small business owners have now received proceeds from their Payroll Protection Program (PPP) loan. These individuals at now looking at how they can maximize the amount of loan that can be forgiven. This episode gives the guidance provided by the Loan application published on May 15th, 2020.

Now that small businesses have started to receive proceeds from their Payroll Protection Program (PPP) loans, how does forgo the forgiveness portion work? In other words how can businesses avoid having to pay back the proceeds? We have some answers now, but many questions remain. This episode discusses both what we know so far and questions that must be addressed in the very near future.

The CARES Act, the new law that passed on March 27, 2020 contained provisions to assist small businesses and individuals through the Coronavirus pandemic. The Paycheck Protection Program (PPP) was the largest small business program in the law. This episode explains the changes that have taken place since the law was adopted.

The CARES act which was signed into law on March 27th, 2020 contains many provisions aimed at aiding both individuals and small businesses. This episode breaks down the major components of the new law.

It’s tax season and although there are always individuals attempting to steal your identity, tax time provides additional opportunities. This episode is meant to inform you and minimize your chances of becoming a a victim.

The a tax Cuts and Jobs Act changed many laws in 2018 and the SECURE Act both implemented new legislation as well as extended some important provisions of the law previously allowed to expired at the end of 2017. This episode explains the most pertinent aspects of these changes and extenders.

The SECURE Act passed in December of 2019 extended a number of expired provisions that help taxpayers. Additionally, provisions were added which mostly helped taxpayers. This episode explains the most important provisions.

In December of 2019 a new tax law was passed that has major provisions affecting retirement plans. This episode highlights the provisions most likely to affect you.

As the owner of a business, you have many facets that you are required to manage. Are you allocating you’re time properly between them? In other words, are you using your time in the most effective way possible? If not, this can wreak havoc on your business.

Most individuals open their own business because they are excited to sell their product or service. Very often they are not prepared for all of the regulations and paperwork that follow and it causes them to feel overwhelmed. This episode discusses how to alleviate the stress.

There are a variety of legal settlements that taxpayers may receive. Some legal settlements are taxable and some are not. This episode eliminates the mystery and explains when a legal settlement is taxable income and when it is not.

Required Minimum Distributions (RMDs) were placed into law to make taxpayers with income in retirement plans, which they have not yet paid tax on, to start taking this money and pay tax on it. This can increase your income and under the new tax law with it’s higher standard deductions an itemized deduction to a charitable organization may not yield any benefit. This episode explains a way to net your RMD with a charitable deduction!

When individuals sell or exchange property they often enjoy certain tax benefits. Some of these benefits are long term capital gain treatment, installment sale reporting and the ability to report losses. These rules are generally nonexistent when selling to related parties. Please don’t fall into these traps.

If you own a cash based business there are some strategies that can still be legally implemented at the end of the year. This podcast covers the most effective strategies that can literally save you thousands of dollars!

There has been a lot said about the reduction of the corporate income tax rate to 21%. This episode explains the reasons you may want still want to elect S corporation status as well as some traps to be aware of.

This episode clears up the mystery surrounding what Required Minimum Distributions are and what the requirements are for individuals.

There are various entity types available for businesses. Your business may be structured as a sole proprietorship, partnership, S corporation, C corporation or even an LLC or LLP. The way you deduct health insurance differs based on your entity type and this episode explains the differences.

This episode explains how a taxpayer that wishes to convert his/her home to a rental property can save money by first selling the home to an S corporation.

According to a recent survey assisted living facilities are nearing $50,000 per year and nursing homes are edging closer to $100,000 per year. Learn how to expense these costs as medical expenses.

The Tax cuts and jobs act had many provisions that both helped and hurt individual taxpayers, however almost all the rule changes for business were positive. This episode explains how to utilize the new law to reduce taxes on your pass thru business and ultimately reduce your income tax bill.

The Tax Cuts and Jobs Act eliminated the individual mandate requiring individuals to have health insurance or pay a penalty. Some states, however, have instituted their own penalties. In addition this episode also explains how the Premium Tax Credit works.

The Tax Cuts and Jobs Act contains a provision that allows taxpayers to defer significant amounts of capital gains by investing in opportunity some funds. These funds are designed to spur economic development and job creation in distressed communities.

In this episode I address the most typical cash flow issues that arise in small businesses with some suggestions on how to mitigate their impact on your business.

The proper use of a Net Operating Loss can save taxpayers significant dollars. There are, however, a number of hurdles that were thrown in by the 2018 Tax Cuts and Jobs Act. This episode focuses on these new rules.

The purpose of a buy-sell agreement is to facilitate a change in ownership upon the occurrence of certain events. Whether these events are voluntary or involuntary the main objectives of a buy-sell agreement are to make sure remaining owners retain control and departing owners or their families are reasonably compensated for relinquishing their financial interest in the Company.

Most people that start their own business have a passion for their particular product or service, which is what leads to them opening their own business. Many have no idea how to get started and this episode is meant to give you a pathway to opening your business.

Although not typically the first thought on a new owners mind, a business plan will serve as a blueprint on how to run your business and greatly increase your chance for success.

One of the most common questions I am asked is how long must I retain my business records which is normally code for I want to throw some things out and I want you to say it’s okay. This episode sheds some light on this question.

Many individuals use their automobiles in their businesses and this episode extension explains how this is done.

There is always a great deal of discussion on the distinction between short term and long term capital gains and losses. This episode explains how to determine short vs long term capital gain or loss and the tax implication of each.

There are a number of items available in the tax code to assist taxpayers paying for qualified education expenses. Learn about the tax credits and deductions available as well as a way to eliminate penalties on IRA withdrawals before age 59 1/2.

Taxpayers are often confused on which structure they should choose for their business; sole proprietorship, partnership, C corporation, S Corporation or LLC. This podcast unlocks the mystery and discusses the basics of each type.

Although it is very often the largest deduction on taxpayers returns there are a few rules that are not common knowledge and this lack of knowledge can hurt those expecting to be able deduct more than the law allows. This podcast outlines these rules.

One question that I run into quite often is I made a mistake on my tax return and I know I am entitled to more deductions but is amending my return going to raise a red flag? This podcast covers this question as well as some other information that taxpayers considering amending a return should know.

There are a variety of reasons why employers would like to classify workers as independent contractors; no payroll taxes, no benefits such as health insurance, no pension or profit sharing requirements and no minimum wage and hour laws. The IRS would like workers classified as employees to make collection of Social Security ad Medicare taxes easier. Learn how to determine whether workers are independent contractors or employees.

Like-Kind exchanges or 1031 transactions allow taxpayers to dispose of property and defer the gain of the property if certain very stringent rules are followed closely. This podcast discusses these rules.

Since the Tax Cuts and Jobs Act passed when discussing real estate I and most others have concentrated on the new 20% deduction available against rental income. This podcast explains what happens when taxpayers incur a loss and how much is allowed as a deduction on your return.

Now that we are through tax season I would like individuals to take control of their tax situation by estimating next year’s liability and assuring that they are covered through either the use of withholding or estimated income tax payments so there are no surprises next April.

If you own a sole proprietorship, single member LLC or are a partner/member of a multiple member LLC or partnership where all partners and/or members are parents of minor children you may be able to save significant tax dollars.

One of the more common situations I run into is taxpayers selling their principal residences and trying to determine whether they are eligible for the $250,000 ($500,000 in the case of certain married taxpayers) exclusion from the gain on sale. This episode addressed the requirements for exclusion including some of the nuances pertaining to married couples.

This podcast explains options for individuals that either cannot file their returns or pay their balance in full by the April 15th deadline. Topics covered include extensions and payments options available.

With the divorce rate being approximately fifty percent many individuals have to deal with tax implications upon divorce. This episode examines the treatment of alimony, child support payments sand filing status options updated for the the Tac cuts and jobs act.

There may be a time when a business owner would like to elect to change their business entity for it’s current tax structure to that of an S corporation. In this episode I discuss how to do this timely and what to do if you cannot file timely.

This episode addresses the provisions of the new tax law that most commonly affect businesses. I cover the reduced corporate tax rate, changes in depreciation, the new 20% deduction on qualifying ed business income and more.

This episode addresses the provisions of the new tax law that most commonly affect individual taxpayers. I cover the unintended consequence of relying on tax tables for withholding as well as personal exemptions, the child tax credit, the state and local income tax deduction and miscellaneous itemized deductions.

The Tax Cuts and Jobs Act has many provisions that when used properly can save small businesses money. None, in my opinion, is better than the 20% deduction for Pass-Thru Entities.

By far the biggest surprise that small business owners and entrepreneurs run into when they first make money is Self-Employment Tax. While most people understand they must pay Federal and State taxes on their self/employed income few realize, until it happens to them the first time, that self-employment tax will cost them approximately 14% of their earnings.

Small business owners, entrepreneurs and Network Marketers have the ability to save thousands of dollars by using the appropriate retirement plan for their needs. This episode compares and contrasts some of the more commonly used retirement vehicles.