Beyond the Numbers
Our Beyond the Numbers blog is published with articles on a monthly basis.
Personal Property Taxes
Property tax not only applies to real property, but also applies to personal property that is owned and used in a business. Personal property includes leasehold improvements, machinery, equipment, furniture and supplies. It does not apply to inventory. All...
1099 Reporting Requirements
Taxpayers who have an active trade or business are required to prepare Form(s) 1099 to report various types of payments made during the year. The filing requirement does not include payments made to corporations unless it is a payment for legal services rendered....
Health Insurance Paid on Behalf of Partners and LLC Members
Partners in a partnership and LLC members may be able to deduct all the medical, dental and qualified long-term care insurance paid on their behalf and on their family. In order to deduct the premiums: The policy must be in the name of the company, partner or member....
Reasonable Compensation in an S Corporation
BackgroundThe IRS has recently hired as many as 2500 new agents specifically trained in spotting shareholders who pay themselves too small of a salary while taking too many distributions. Catching these companies results in a big payoff for the IRS in the form of...
Minimum Wage Rates
Effective Jan. 1, 2023, the Washington minimum wage rate increases to $15.74 per hour. The Oregon minimum wage rate will be adjusted starting July 1, 2023 but that rate has not been released. The estimated rate is currently $14.60 per hour, unless within the Portland...
W-2 Reporting for Health Insurance Paid on Behalf of S Corporation Shareholders
You may be able to deduct all the medical, dental and qualified long-term care insurance paid by the corporation on behalf of you and your family. In order to deduct the premiums, the following rules are in place: The policy must be in the name of the S corporation or...
W-2 Reporting of the Personal Use of Business Vehicles
If a business owns or leases vehicles that shareholders or employees use for personal reasons (including commuting) you need to include an employee benefit amount in W-2 wages. The Internal Revenue Service has established valuation guidelines to be used in calculating...
Filing Due Dates
In 2022 the filing deadline for multiple types of returns are consistent with prior years. The various due dates are: W-2s – Jan. 31 for providing forms to employees and filing with Social Security Administration 1099s-NEC – Jan. 31 for providing forms to vendors and...
Ways to Claim (Tax) Credit for Going Green
If you’re planning energy-efficient home improvements or considering the purchase of an electric vehicle in 2023, The Inflation Reduction Act (IRA), signed into law in August, may hold some tax breaks for you. The climate portion of the 2022 Inflation Reduction Act...
Ingredients of a Successful Business Partnership
Like a bundle of sticks, good business partners support each other and are less likely to crack under strain together than on their own. In fact, companies with multiple owners have a stronger chance of surviving their first five years than sole proprietorships,...