giving tuesday, overlooked tax deductions

5 Tax Deductions Overlooked by Small Business Owners

by Ron Leger, CPA   Tax changes occur every year. New deductions emerge while some earlier ones aren’t being renewed for this year, so it’s important to stay up to date and always look for those tax deductions often overlooked. Vehicle expenses:If you own or lease a vehicle used for business travel, you can deduct … Continued

7 Year-End Tax Tips for Business

by Ron Leger, CPA The end of the year is a great time to think about business goals and what you want to achieve next year for your business. As you prepare to close your books for another year, congratulate yourself for another year in business and take steps to make a few strategic tax … Continued

How Business Structure Affects Taxes

by Ron Leger, CPA   There are four different types of business structures for businesses. Sole proprietorship, partnership (Limited liability company –LLC), S corporation and C corporation The primary considerations for determining the appropriate business structure are taxation and liability. These business structure choices affect not only how you pay taxes, but also how profits … Continued

R&D Tax Credit – Can it Benefit Start Ups and Small Businesses?

Finally, Congress has passed an incentive for small businesses to invest in R&D. Tax law changes under the PATH Act of 2015 have benefited smaller start-up businesses defined as average gross receipts of five million or less within the last five years.  Starting in 2016, taxpayers can claim the research and development credit as an … Continued

tax tip leger cpa

Save or Shred – How Long to Keep Financial Documents

Most all experts recommend keeping tax-related records for seven years. The Internal Revenue Service (IRS) can audit you for three years after you file your return if it suspects a good-faith error, and the IRS has six years to challenge your return if it thinks you underreported your gross income by 25 percent or more. A seven-year … Continued

Using Intuition for Decision Making

A business philosophy I believe to be most important is building relationships. But what does it really mean when we say building relationships? It is much deeper than just performing a tax service or providing consultations.  It is getting to know clients on a level much deeper than you imagined someone in business would do.  … Continued

What are eligible R&D costs?

Eligible R&D (Research & Development) costs include these categories: Wages: W-2 taxable wages for employees offering direct support and first-level supervision of research. Supplies: Supplies used in research, including so-called extraordinary utilities but not capital items or general administrative supplies. Contract research: Certain subcontractor expenses (provided the subcontractor’s tasks would qualify if they were instead … Continued

Tax Tip: Capital Losses

Happy Tuesday! Tax tip: (Did you know?) The IRS allows you to “carry forward” all of your capital losses, no matter how large. If capital losses exceed capital gains, the filer is entitled to claim a deduction against the loss in the amount of $3,000 or the total net loss, whichever is less. When a … Continued

Tax Tip: Manufacturing Innovations and R&D Tax Incentives

Happy Tuesday! Tax tip: (Did you know?) These manufacturing innovations may be eligible for R&D Tax Incentives: Developing Second-Generation or Improved Products Developing Innovative Manufacturing Equipment Tooling and equipment fixture design and development Prototyping and three-dimensional solid modeling And many many more. The Research & Development tax credit is the largest tax credit provided to … Continued

Tax Tip: R&D Tax Incentives

Happy Tuesday! Tax tip:  (Did you know?) These production processes may be eligible for R& D Tax Incentives: Reducing Labor Costs Reducing Manufacturing Times Performing Alternative Material Testing. Far too many manufacturers fail to understand that they may qualify for the Research & Development tax credit – the largest tax credit provided to business by … Continued