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Section 199A, passed as part of the December 2017 tax reform, gives many small business owners a deduction determined with respect to their qualified business income (QBI). Generally, QBI is [...]

The most sweeping tax reform act since 1986 has been signed into law. Here's a rundown of the most relevant provisions affecting members of the landscape and lawn care business. [...]

The article offers information on the certified public accountant (CPA). Topics include examines the disadvantage to utilize the annualized method as opposed to the general method is that the calculation of estimated tax payments may be more complex and time-consuming; and considered an underpayment penalty is imposed on each underpayment for the number of days it remains unpaid.

The article explores how an audit works and gives advice to garden center owners in preparing to be audited. They should confirm the error and pay the additional tax, penalty and interest if they receive a letter stating that a math error was made or that they received a 1099 from a payer linked to their tax identification number that they failed to include in their return. Professional representation is needed when having a face-to-face meeting with an Internal Revenue Service (IRS) auditor.

The article focuses on how using a pass-through entity to reduce taxes. Topics discussed include President Trump signed into law the Tax Cuts and Jobs Act, which brought about sweeping changes to the tax cod; and state and local taxes (SALT) taxes include state income taxes or general sales taxes if elected, instead of income taxes, real property taxes and personal property taxes.

The article discusses that President Biden has asked Congress for $80 billion to help the IRS crack down on tax avoidance from wealthy Americans and big corporations. Topics discussed include the proposal seeks a boost in enforcement staffing, technology and additional bank reporting, measures that may generate tax revenue; and this means more audits for certain small businesses, including those owned by pest management professionals (PMPs).

Under current law, the maximum effective federal income tax rate on net long-term capital gains recognized by individual taxpayers is 20 percent. Under a proposed plan, net long-term capital gains collected by those with incomes above $1 million would be taxed at the same 39.6 percent proposed maximum rate that would apply to ordinary income and net short-term capital gains. [Extracted from the article]

The article offers the author's insights on travel, meals, and entertainment industry audit and tax deduction. The author mentions that the sector must meet the Business Purpose Retirement for them to be qualified for tax deduction. He states that travel expenses can be deducted from the tax if the travel was entirely related to business.

The article discusses the regulations in applying for travel, meals and entertainment deduction at the U.S. Internal Revenue Service (IRS). The federal agency employs the Discriminant Inventory Function System to calculate the scoring system. The article mentions that professionals should evaluate the activity as having a business purpose, the limitation on club fees, and split on combination trips.

The article provide an answer to question related to using tax falls within the type of state audit.

The article discusses the concept of tax depreciation. Topics mentioned include impact on landscape professionals of Section 179 of the tax extender law signed in 2015, imposition of expensing limits of up to 500,000 U.S. dollars and extension of bonus depreciation, and advice on effectively purchasing assets in a profitable year to increase short-term profits.

The article offers suggestions for lowering deductible business expenses for reducing taxes. It states deduction rules of the U.S. Internal Revenue Service (IRS), and mentions that for deducting an expense a pest management professional (PMP) should be able to provide evidence that supports what the deduction was for. It notes that one needs to keep all records supporting tax return for at least four years, and cites role of certified public accountants.

The article discusses the approach taken by American businessman and the president-elect of the U.S., Donald Trump, for deductions under the tax code. It notes that the most talked about strategy he employed is the net operating loss (NOL) deduction. Also tackled are the people eligible to claim an NOL, the identification if one have an NOL and the use of an NOL to reduce taxes.

The article discusses the need for pest management firms to determine whether their workers are employees or independent contractors to avoid problems with the U.S. Internal Revenue Service and the U.S. Department of Labor. Topics include reporting and tax responsibilities of an independent contractor relationship, reporting and tax responsibilities of an employer/employee relationship, and the civil and criminal penalties related to misclassified employees.

The article discusses the business activities landscape and lawn care contractors need to undertake in order to keep their finance and accounting functions organized including consultation with a certified public accountant. It takes note of the organizational and taxation aspects of business structures such as limited liability companies and of the need to separate personal accounts. Preparation of budgets, profit and loss statements and balance sheets are also discussed.

The article discusses tax reduction strategies that landscape business owners can consider in light of the expiration of Section 179 deduction of the American Tax Relief Act of 2012 (ATRA) on January 1, 2014. Topics covered include the need to determine year-end tax situation by making a 2014 tax projection with the help of a tax adviser, establishing a tax deductible employee retirement plan, and the benefit of paying state taxes in the current year.