Category: Business Practices
SR Glossary: Business Casualty Losses
Disasters happen. Unfortunately, something bad can, and probably will, happen to any business operating for a long enough period of time. However, through proper insurance, and the following guidance, hopefully when a disaster strikes, your business losses will be minimized. ...
How to make an S-Corp Election
A corporation informs the Internal Revenue Service of its choice to be taxed as an S-Corporation instead of as a C-Corporation using IRS Form 2553. It is extremely important for a newly formed corporation to make this decision early. Forming...
Related Party Transactions counted as ordinary income
In general, gains from Related Party (Section 1239) Transactions of depreciable or amortizable property is ordinary income, and does not fall under the 1231 rules where net 1231 gains are treated as capital income. A recent IRS case illustrates the...
Seven smart tips to making a great first (customer) impression
Research shows that customers decide whether or not they want to work with you within two seconds of meeting you face to face. That puts the burden on you to make certain that those first two seconds really count. The...
SR Client Question – What is the difference between a SEP IRA and a SIMPLE IRA?
SEP IRAs (simplified employee pension individual retirement arrangement) and SIMPLE IRAs (savings incentive match plan for employees individual retirement arrangement) are retirement plan options geared toward small businesses. Both types of plans are easy to administer and require no annual...
Client Question: Do I need to keep business expense credit card receipts?
With the increase in audits (both federal and state) over the past year, knowing what documentation is needed in the case of an audit is essential. Many businesses think that a credit card statement is sufficient in proving a business...
Happy New Year!
Just in time for the New Year, the IRS has released the standard mileage rates for use in 2013 (Notice 2012-72). Taxpayers can use the optional standard mileage rates to calculate the deductible costs of operating an automobile. Business use...
8 Questions to ask yourself before you start a business
If you have ever thought about, discussed, or fantasize about quitting your day job and becoming your own boss, you are not alone. What could be better than setting your own hours, reporting to yourself and pursuing your own goals?...
SR Client Question: Can an LLC Own Shares of an S Corporation?
An S corporation has strict limitations on who can own stock that are imposed upon it by the Internal Revenue Code (IRC) Section 1361(c), which provides that an S corporation can only have shareholders that are individuals or certain trusts...
AICPA explains Fiscal Cliff in plain English in Dec. 18 webinar
The AICPA | PFP Division presents: The Fiscal Cliff: What It Means for You in Plain English Speakers:Michael Goodman, CPA/PFSTed Sarenski, CPA/PFS The “fiscal cliff” is the combination of tax increases and spending cuts scheduled to take effect on Jan....