Self-Employment

Profit Motive

When taxpayers have high W-2 earnings (in excess of $150,000 for example) coupled with large losses from self-employment activities, it's like waving a big "Audit Me" sign! The IRS' rationale for scrutinizing a tax return with these conditions is that if the taxpayer has substantial income unrelated to the self-employment activity, the taxpayer is more [...]

Now is the time for 1099s!

Over the past few years, the IRS has taken an aggressive step to ratchet up its ability to enforce business compliance with annual 1099 income reporting regulations. We would like to discuss Form 1099-Misc and these enforcement changes. We will also share the potential consequences for not filing these annual reports and how to stay [...]

Tax News You Can Use

No major changes for the year, but keep these thoughts in mind as we near the end of 2015. Congress is expected to revive key breaks including bonus depreciation to allow writing off 50% of cost of qualifying assets put in service this year. The higher ceiling on expensing assets is likely to be reinstated. [...]

Health Care & Small Business

The Affordable Care Act means big changes for your small business. We at Franty & Company want to make sure you’re prepared for the new health care requirements. Self-Employed: Eligible to purchase health insurance coverage through the Individual Health Insurance Marketplace Individual Shared Responsibility (ISR) provision of the ACA requires each individual in a household [...]

Expense Reimbursement Guidelines

How do you distinguish expense reimbursements from disguised compensation? Establish an accountable plan! Accountable vs. Nonaccountable If a company’s arrangement meets the accountable plan requirements, expense reimbursements to employees are 100% deductible by the company (50% for most meals and entertainment). Also, the reimbursements are excluded from the employees’ taxable income and are not subject [...]

January 10, 2015|Businesses|