What Are the Tax Implications of Making an Employee into a Partner?

 

In today’s competitive environment, offering employees an equity interest in your business can be a powerful tool for attracting, retaining and motivating quality talent. But what are the tax implications of making an employee into a partner? If your business is organized as a partnership, however, there are some tax traps you should watch out for. Once an employee becomes a partner, you generally can no longer treat him or her as an employee for tax and benefits purposes, which has significant tax implications. [Read more…]

Hire Your Children to Save Taxes for Your Business and Your Family

 

It can be difficult in the current job market for students and recent graduates to find summer or full-time jobs. If you’re a business owner with children in this situation, you may be able to provide them with valuable experience and income while generating tax savings for both your business and your family overall. [Read more…]

How to Find a Successor – 3 Places to Look

 

Picking someone to lead your company after you step down is probably among the hardest aspects of retiring (or otherwise moving on). Sure, there are some business owners who have a ready-made successor waiting in the wings at a moment’s notice. But many have a few viable candidates to consider — others have too few. [Read more…]

Bartering May Be Cash Free But It’s not Tax-Free

Bartering may be cash-free, but it’s not tax-free. Businesses must report as income the fair market value of the products or services received. If there are business expenses associated with the transaction, those can be deducted. Any income arising from a bartering arrangement is generally taxable in the year you receive the bartered product or service. And income tax isn’t the only tax to consider. Barter activities may also trigger self-employment taxes, employment taxes or an excise tax. We can help you assess a bartering arrangement and manage the tax impact.

Having all the right information can help save your business lots of money. You aren’t a tax expert. You have too much else to worry about. Let ASCEND help you with your business tax strategies.

What Are the Tax Advantages of Employee Education Reimbursement?

 

Reimbursing employees for education expenses can both strengthen the capabilities of your staff and help you retain them. In addition, you and your employees may be able to save valuable tax dollars. But you have to follow IRS rules. Here are a couple of options for maximizing tax savings. [Read more…]

The Section 1031 exchange: Why it’s such a great tax planning tool

 

Like many business owners, you might also own highly appreciated business or investment real estate. Fortunately, there’s an effective tax planning strategy at your disposal: the Section 1031 “like kind” exchange. It can help you defer capital gains tax on appreciated property indefinitely. [Read more…]

A BORDER #$@&% TAX!

ascend shipping containersBy William E. Rogers MBA, CFP, EA

Over the past few weeks, I’ve had numerous clients ask me about how they might be impacted by the border adjustment tax. In fact, so many have expressed concern that they’re already seeking advice on how to avoid being impacted, even though nothing has been enacted into law. For those of you whom are unfamiliar with the subject, the border adjustment tax is currently a proposal, not law. The idea is derived from the House Republican’s Ways and Means Committee tax reform blueprint, “A Better Way”.[i] One of the central themes in the House GOP blueprint is to shift the taxation of goods and services from a “worldwide” to a “territorial” based system. Proponents of the plan believe that it would dramatically improve U.S. competitiveness because companies would no longer be forced to keep cash trapped overseas for fear of those funds being taxed upon repatriation. In other words, under a territorial system all earnings from overseas would be exempt from tax. [Read more…]

PTO banks: A smart HR solution for many companies

 

“I’m taking a sick day!” This familiar refrain usually is uttered with just cause, but not always. What if there were no sick days? No, we’re not suggesting employees be forced to work when they’re under the weather. Rather, many businesses are adopting a different paradigm when it comes to paid time off (PTO). [Read more…]

The “manufacturers’ deduction” isn’t just for manufacturers

 

The Section 199 deduction is intended to encourage domestic manufacturing. In fact, it’s often referred to as the “manufacturers’ deduction.” But this potentially valuable tax break can be used by many other types of businesses besides manufacturing companies. [Read more…]

Is your business committed to its cost-control regimen?

 

At the beginning of the year, many people decide they’re going to get in the best shape of their lives. Similarly, many business owners declare that they intend to cut costs and operate at peak efficiency going forward. [Read more…]