The new Cost-Of-Living Adjustment (COLA) increases have come out for the year 2018. In the link below we have comparison of the 2018 and 2017 COLA dollar limitations on benefits and contributions. COLA increases 2018-2017 For more information or questions, please contact Lori Plescia, CPA, PFS, QPFC at 314-576-1350 or firstname.lastname@example.org.
Many medium and small companies who operate as corporations choose to be taxed as an S-Corporation. Operating this way eliminates the double taxation (income tax imposed on both net taxable corporate income and subsequent distributions made to shareholders) that corporations would otherwise have. Income taxation at the corporate level can still occur, however. One way this can occur is the built-in gains tax. This is normally incurred when the fair market value of the assets of a corporation exceed their ad
Most people are familiar with the tax advantages to the participant of a 401(k) plan. There are also many benefits to an employer for implementing a 401(k) plan. Many of these are financial. The first, and most obvious benefit to the employer, is the tax advantages which can offset some of the costs. Any Employer contributions, whether in the form of a match or a discretionary contribution, are tax deductible for the employer. In addition, if this is the first 401(k) plan for your company, you are eligible
The IRS announced last week the annual cost of living adjustments for various tax-related provisions for 2018. Keep in mind, these new numbers are for tax year 2018 (beginning January 1, 2018 thru December 31, 2018), which the return will be filed in 2019. Additionally, these are the amounts as the law stands today. If President Trump’s tax reform plan is passed, the amounts below may be affected. Refer to the table below for some of the key area updates: Tax Provision 2018 Amounts 2017 Amounts
In order to qualify as a business for tax purposes, an activity must be actively engaged in for profit. To determine if a taxpayer has a profit motive, the IRS looks at various factors which are often subject to judgment. It is important for a taxpayer to be able to prove they are a business, as the tax treatment is much more favorable. If an activity is a business activity, expenses will be deductible and losses may be used to offset other income. The taxpayer can also deduct health insurance premiums and