TMTW #461 – Happy Thanksgiving!

Tax and Money Tip of the Week:
Happy Thanksgiving!
November 27, 2019 | No. 461

Hope you and your family have a wonderful Thanksgiving! 

Questions or Comments?

You can add comments on the blog, call 919-847-2981, or visit our web site. We look forward to hearing from you.

Mark Vitek, CPA/PFS, CFP®
…until next week.

Posted in Tax and Money Tip of the Week | Tagged , , , | Leave a comment

TMTW #460 – 2019 Last Minute Vehicle Purchases to Save on Taxes

Tax and Money Tip this Week:
2019 Last Minute Vehicle Purchases to Save on Taxes
November 20, 2019 | No. 460

Here’s an easy question: Do you need more 2019 tax deductions? If yes, continue on. Next easy question: Do you need a replacement business vehicle? If yes, you can simultaneously solve or mitigate both the first problem (needing more deductions) and the second problem (needing a replacement vehicle), but you need to get your vehicle in service on or before December 31, 2019. This linked article below helps you find the right vehicle for the deduction you desire.
Click Here to read article.

Questions or Comments?
You can add comments on the blog, call 919-847-2981, or visit our web site. We look forward to hearing from you.

Mark Vitek, CPA/PFS, CFP®
…until next week.

 

Posted in Tax and Money Tip of the Week | Tagged , , , , | Leave a comment

TMTW #459 – Last Minute Section 199A Strategies That Reduce Taxes

Tax and Money Tip this Week:
2019 Last Minute Section 199A Strategies That Reduce Taxes
November 13, 2019 | No. 459

Remember to consider your Section 199A deduction in your year-end tax planning. If you don’t, you could end up with a big fat $0 for your deduction amount. We’ll review four year-end moves that (a) reduce your income taxes and (b) boost your Section 199A deduction at the same time.
Click Here to read an article with more details

 

Questions or Comments?
You can add comments on the blog, call 919-847-2981, or visit our web site. We look forward to hearing from you.

Mark Vitek, CPA/PFS, CFP®
…until next week.

Posted in Tax and Money Tip of the Week | Tagged , , , , , | Leave a comment

TMTW #458 – 2019 Last Minute Year-End General Business Income Tax Deductions

Tax and Money Tip this Week:
2019 Last Minute Year-End General Business Income Tax Deductions
November 6, 2019 | No. 458

Your year-end tax planning doesn’t have to be hard. The attached article takes your daily business activities and identifies easy year-end tax-planning moves you can make today. Our five strategies will increase your tax deductions or reduce your taxable income so that Uncle Sam gets less of your 2019 cash.
Click Here to read the full article.


Questions or Comments?
You can add comments on the blog, call 919-847-2981, or visit our web site. We look forward to hearing from you.

Mark Vitek, CPA/PFS, CFP®
…until next week.

Posted in Tax and Money Tip of the Week | Tagged , , , , , , | Leave a comment

TMTW #457 – Year End Tax Planning

Tax and Money Tip this Week:
Year End Tax Planning
October 30, 2019 | No. 457

This is the time of year in our CPA practice that I work with small business owners and individuals to perform tax checkups to help them project their tax liabilities for 2019 and make tax saving recommendations of moves they can make between now and year-end. Frequently, just defining the amount of taxes they owe via these planning services helps manage their cash flow so the businesses and individuals don’t have a big amount due and/or surprise each Spring when we prepare their tax returns.

For the business owner and individuals, one of the largest expenses can be taxes.  For this reason alone, this expenditure requires planning and monitoring as any other major expense.  A year end planning meeting with your CPA should include a discussion of:

  • any assets purchased during the year
  • anticipated year-end revenues and expenses
  • plans for current year retirement funding
  • any refinancing of debt that occurred in the current year
  • any changes to your business structure

This planning meeting should prepare the business owner or individuals to anticipate the amount of taxes that will be owed on March 15th (or April 15th if the tax burden flows through to the personal return).  To be effective, tax planning needs to be done prior to New Year’s Eve.

Use our experience in year-end tax planning to enhance your bottom line.  Give us a call if you would like to discuss your personal tax situation and see how we can save you taxes.

Questions or Comments?
You can add comments on the blog, call 919-847-2981, or visit our web site. We look forward to hearing from you.

Mark Vitek, CPA/PFS, CFP®
…until next week.

 

Posted in Tax and Money Tip of the Week | Tagged , , , , , | Leave a comment

TMTW# 456 – Good Communication is Key to Lowering Taxes

Tax and Money Tip this Week:
Good Communication is Key to Lowering Taxes
October 23, 2019 | No. 456

After over 30 years in the tax business, we continue to find that solid accounting and good communication with your CPA is the key to lowering taxes.

Solid bookkeeping for your business enables you to take the most deductions possible while minimizing taxes.

Year-end tax planning also helps to prepare for what to expect on April 15th, prevents unwanted surprises, and saves a lot of taxes for our clients through this valuable service we offer this time of year.  We frequently save our fees through solid recommendations.

Business owners are always looking for ways to maximize profits and minimize expenses. Occasionally, you may be approached by folks other than us regarding estate or investment planning.

A quick (even 15 minute or less) phone call with your trusted advisor CPA about topics such as these can help you be confident that you have considered all the financial and tax impacts on you, your company and your family.

When you are considering any significant financial decisions, we are available.

Give us a call.  Sometimes it can mean saving thousands of dollars.

You can add comments on the blog, call 919-847-2981, or visit our web site. We look forward to hearing from you.Questions or Comments?

Mark Vitek, CPA/PFS, CFP®
…until next week.

Posted in Tax and Money Tip of the Week | Tagged , , , , | Leave a comment

TMTW #455 – Creating More Business Meal Tax Deductions After the TCJA

Tax and Money Tip of the Week:
Creating More Business Meal Tax Deductions After the TCJA
October 16, 2019 | No. 455

Here’s good news for business meals: the Tax Cuts and Jobs Act (TCJA) removed the “directly related and associated with” requirements from business meals.

The net effect of this change is to subject business meals once again to the pre-1963 “ordinary and necessary” business expense rules.

You are going to like these rules.

Restaurants and Bars

Question 1. If, for business reasons, you take a customer to breakfast, lunch, or dinner at a restaurant or hotel, or to a bar for a few drinks, but you do not discuss business, can you deduct the costs of the meals and drinks?

Answer 1. Yes. Even though you did not discuss business, the law provides that if the circumstances are of a type generally considered conducive to a business discussion, you may deduct the expenses for meals and beverages to the extent they are ordinary and necessary expenses. Consider this “no discussion” meal a “quiet business meal.”

Question 2. What are circumstances conducive to a business discussion?

Answer 2. This depends on the facts, taking into account the surroundings in which the meals or beverages are furnished, your business, and your relationship to the person entertained. The surroundings should be such that there are no substantial distractions to the discussion.

Generally, a restaurant, a hotel dining room, or a similar place that does not involve distracting influences, such as a floor show, is considered conducive to a business discussion. On the other hand, business meals at nightclubs, sporting events, large cocktail parties, and sizable social gatherings would not generally be conducive to a business discussion.

Meals Served in Your Home

Question 3. Does a business meal served in your home disqualify the deduction?

Answer 3. No, as long as you serve the food and beverages under circumstances conducive to a business discussion. But because you are in your home, the IRS adds that you must clearly show that the expenditure was commercially rather than socially motivated.

Goodwill Meals

Question 4. If, for goodwill purposes, you take a customer and his or her spouse to lunch and don’t discuss business, will the cost of the lunch become non-deductible?

Answer 4. Not if, in light of all facts and circumstances, the surroundings are considered conducive to a business discussion, and the expenses are ordinary and necessary expenses of carrying on the business rather than socially motivated expenses.

Question 5. Is the situation the same if the taxpayer’s spouse accompanies the taxpayer at a dinner for business goodwill reasons?

Answer 5. Yes, the meal is deductible. This is true whether or not the customer’s spouse is present. Again, the meal must meet the ordinary and necessary business expense standards.

Document the Meal Deductions

You need to keep records that prove your business meals are ordinary and necessary business expenses. You can accomplish this by keeping the following:

  1. Receipts that show the purchases (food and drinks consumed)

 

  1. Proof of payment (credit card receipt/statement or canceled check)

 

  1. Note of the name of the person or persons with whom you had the meals

 

  1. Record of the business reason for the meal (a short note—say, seven words or fewer)

The costs of your business meals continue to be 50 percent deductible (as they were before the TCJA).

Questions or Comments?
You can add comments on the blog, call 919-847-2981, or visit our web site. We look forward to hearing from you.

Mark Vitek, CPA/PFS, CFP®
…until next week

Posted in Tax and Money Tip of the Week | Tagged , , , , , | Leave a comment