Category: Business Practices
ShindelRock’s portal settings to change under new hosting services interpretation
CPAs’ hosting services impair independence under a new interpretation adopted by the AICPA Professional Ethics Executive Committee, Hosting Services, which appears in the AICPA Code of Professional Conduct’s “Independence Rule” (ET §1.295.143) under “Nonattest Services” and applies to practitioners who provide nonattest services...
Manager Karla Harrington is now a QuickBooks Certified ProAdvisor
ShindelRock Manager Karla Harrington was recently certified as a Quickbooks Certified ProAdvisor! A QB ProAdvisor is a QuickBooks accounting pro who can provide strategic insights to drive small business success. ShindelRock tax and accounting professionals use their expertise in both...
Does converting your business to a C corporation make sense under the TCJA?
If you’re thinking about converting your business entity to a C corporation to take advantage of the new flat 21% corporate federal income tax rate under the Tax Cuts and Jobs Act (TCJA), it’s important to do your homework. The...
Understanding the treatment of training costs as business expenses
For businesses, amounts paid or incurred for training, including costs of trainers and routine updates of training materials, are generally deductible as business expenses, even though they may have some future benefit. For example, if your company has a point-of-sale...
10 ways small businesses can avoid fraud
As most of us know, small and mid-sized businesses are more vulnerable to fraud than larger organizations, and the effects can be much more damaging. To keep your business one step ahead, follow these ten tips to avoid business and...
Understanding Section 179 and passive income
Section 179 of the Internal Revenue Code allows a taxpayer to elect immediate expensing on qualifying assets purchased during the year, rather than the default asset capitalization rules, which require the asset cost to be written off over several years. Qualifying property...
Tax court rejects theft deduction loss
In a recent Tax Court ruling (McNely v. Comm'r, T.C. Memo. 2019-39), the Court held that a couple could not deduct theft losses of more than $400,000 that they alleged were incurred by their wholly owned S corporation in 2011...
IRS issues guidance on investments in qualified opportunity zones
The Internal Revenue Service today issued guidance (PDF) providing additional details about investment in qualified opportunity zones. The proposed regulations allow the deferral of all or part of a gain that is invested into a Qualified Opportunity Fund (QO Fund)...
QBI deduction and statutory employees
According to a recent article in the Journal of Accountancy, a little-noticed consequence of the proposed regulations on the 20% qualified business income (QBI) deduction introduced by the legislation known as the Tax Cuts and Jobs Act (TCJA), P.L. 115-97, is...
Understanding constructive receipt of income under cash basis
The method of accounting you use largely determines when you get to take deductions and have to recognize (and pay tax on) income. Most individuals and small businesses use the cash basis method of accounting. This method is based on...