Thoughts & Insights

Business Entertainment write-offs

Business Entertainment write-offs are SO 2017 Dear Friends: Lawmakers finally did it. They eliminated some important tax deductions for business owners. In 1986, they reduced the directly related and associated entertainment deductions to 80 percent with that year’s Tax Reform Act. Later, in 1993, they reduced that 80 percent to 50 percent. And now, with [...]

January 11, 2018|Tax Advice|

New Reporting Requirement for PA Businesses

 On December 14, 2017, the Pennsylvania Department of Revenue (“PADOR”) released an informational notice regarding the Withholding on Non-Employee Compensation and Business Income paid to individuals and unincorporated business that are non-residents of Pennsylvania.  A link to the entire notice is here. This is a significant change and if you have a business operating in [...]

January 8, 2018|Tax Advice|

Pre-Paying Real Property Taxes

The Internal Revenue Service advised tax professionals and taxpayers today that pre-paying 2018 state and local real property taxes in 2017 may be tax deductible under certain circumstances. The IRS has received a number of questions from the tax community concerning the deductibility of prepaid real property taxes. In general, whether a taxpayer is allowed [...]

January 8, 2018|Tax Advice|

2018 Standard Mileage Rates

Standard Mileage Rates Increasing   2018 Standard Business Mileage Rate increased by 1 penny per mile   WASHINGTON ― The Internal Revenue Service issued the 2018 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes. Beginning on Jan. 1, 2018, the standard mileage [...]

December 19, 2017|Tax Advice|

IRS Audits and Your Plan of Attack

As you grow your business and make more money, your chances of an IRS audit increase. For example, on an individual tax return, here are your chances of audit: One in 64 with $200,000 or more in adjusted gross income One in 26 with $500,000 or more in adjusted gross income One in 12 with [...]

September 12, 2017|Tax Advice|