Words Count

The Thomas Howell Ferguson Blog

Do you run a business from home? You may be able to deduct home office expenses

You may be able to deduct home office expenses if you run a business from home. Learn more here. Many people began working from home during the COVID-19 pandemic — and many still run a business from home offices either all the time or on a hybrid basis. If you’re self-employed and run a business […]

Read More… from Do you run a business from home? You may be able to deduct home office expenses

Key tax issues in M&A transactions

Merger and acquisition (M&A) transactions activity dropped dramatically last year due to rising interest rates and a slowing economy. The total value of M&A transactions in North America in 2022 was down 41.4% from 2021, according to S&P Global Market Intelligence. But some analysts expect 2023 to see increased M&A activity in certain industries. If […]

Read More… from Key tax issues in M&A transactions

Have employees who receive tips? Here are the tax implications

Many businesses in certain industries have employees who receive tips as part of their compensation. These businesses include restaurants, hotels, and salons. Tip definition Tips are optional payments that customers make to employees who perform services. For employees who receive tips, those can be cash or noncash. Cash tips include those received directly from customers, […]

Read More… from Have employees who receive tips? Here are the tax implications

Many tax limits affecting businesses have increased for 2023

An array of tax-related limits that affect businesses are indexed annually, and due to high inflation, many have increased more than usual for 2023. Here are some that may be important to you and your business. Social Security tax The amount of employees’ earnings that are subject to Social Security tax is capped for 2023 […]

Read More… from Many tax limits affecting businesses have increased for 2023

Forms W-2 and 1099-NEC are due to be filed soon

With the 2023 filing season deadline drawing near, be aware that the deadline for businesses to file information returns for hired workers is even closer. By January 31, 2023, employers must file these forms: Form W-2, Wage, and Tax Statement. W-2 forms show the wages paid and taxes withheld for the year for each employee. They […]

Read More… from Forms W-2 and 1099-NEC are due to be filed soon

Employers, be wary of ERC claims that are too good to be true

The Employee Retention Credit (ERC) was a valuable tax credit that helped employers that kept workers on staff during the height of the COVID-19 pandemic. While the credit is no longer available, eligible employers that haven’t yet claimed it might still be able to do so by filing amended payroll returns for tax years 2020 […]

Read More… from Employers, be wary of ERC claims that are too good to be true

2023 Q1 Tax Calendar: Key deadlines for businesses and other employers

Here are some of the key tax-related deadlines affecting businesses and other employers during the first quarter of 2023. Keep in mind that this list isn’t all-inclusive, so there may be additional deadlines that apply to you. If you have questions about filing requirements, contact us. We can ensure you’re meeting all applicable deadlines. January […]

Read More… from 2023 Q1 Tax Calendar: Key deadlines for businesses and other employers

Choosing a business entity? Here are the pros and cons of a C corporation

If you’re launching a new business venture, you’re probably wondering which form of business is most suitable. Here is a summary of the major advantages and disadvantages of doing business as a C corporation. A C corporation allows the business to be treated and taxed as a separate entity from you as the principal owner. A […]

Read More… from Choosing a business entity? Here are the pros and cons of a C corporation

How to minimize the S corporation LIFO recapture tax

If you’re considering converting your C corporation to an S corporation, be aware that there may be tax implications if you’ve been using the last in, first out (LIFO) inventory method. That’s because of the LIFO recapture income that will be triggered by converting to S corporation status. We can meet to compute what the […]

Read More… from How to minimize the S corporation LIFO recapture tax

The standard business mileage rate is going up in 2023

Although the national price of gas is a bit lower than it was a year ago, the optional standard mileage rate used to calculate the deductible cost of operating an automobile for business will be going up in 2023. The IRS recently announced that the 2023 cents-per-mile rate for the business use of a car, […]

Read More… from The standard business mileage rate is going up in 2023

Do you qualify for the QBI deduction? And can you do anything by year-end to help qualify?

If you own a business, you may wonder if you’re eligible to take the qualified business income (QBI) deduction. This is sometimes referred to as the pass-through deduction or the Section 199A deduction. The QBI deduction is: Taxpayers other than corporations may be entitled to a deduction of up to 20% of their QBI. For […]

Read More… from Do you qualify for the QBI deduction? And can you do anything by year-end to help qualify?

Is your business closing? Here are your final tax responsibilities

Businesses shut down for many reasons. Some of the reasons that businesses shutter their doors: If you’ve decided to close your business, we’re here to assist you in any way we can, including taking care of the various tax obligations that must be met. A business must file a final income tax return and some […]

Read More… from Is your business closing? Here are your final tax responsibilities

Computer Software costs: How does your business deduct them?

These days, most businesses buy or lease computer software to use in their operations. Or perhaps your business develops computer software to use in your products or services or sells or leases software to others. In any of these situations, you should be aware of the complex rules that determine the tax treatment of the […]

Read More… from Computer Software costs: How does your business deduct them?

What local transportation costs can your business deduct?

You and your small business are likely to incur a variety of local transportation costs each year. There are various tax implications for these expenses. First, what is “local transportation?” It refers to travel in which you aren’t away from your tax home (the city or general area in which your main place of business […]

Read More… from What local transportation costs can your business deduct?

Thomas Howell Ferguson P.A. CPAs promotes Peter Fleck and Rebecca Weitzel to Senior in the Tax Services Department

Thomas Howell Ferguson P.A. CPAs (THF or “the Firm”), a three-time ranked Top 200 Firm by Inside Public Accounting, recognizes Peter Fleck and Rebecca Weitzel as they are promoted to Senior in the Tax Services Department. Peter Fleck is a proud double alumnus of Florida State University where he holds a Bachelor of Science degree […]

Read More… from Thomas Howell Ferguson P.A. CPAs promotes Peter Fleck and Rebecca Weitzel to Senior in the Tax Services Department

Thomas Howell Ferguson P.A. CPAs promotes Ben Moon to Manager in the Tax Services Department

Thomas Howell Ferguson P.A. CPAs (THF or “the firm”), a three-time ranked Top 200 Firm by Inside Public Accounting, recognizes Ben Moon as he has been promoted to Manager in the Tax Services Department. Ben Moon brings to the firm six years of his expertise in tax and assurance services. He is a double-alumnus of […]

Read More… from Thomas Howell Ferguson P.A. CPAs promotes Ben Moon to Manager in the Tax Services Department

Thomas Howell Ferguson P.A. CPAs celebrates the promotions of Stacey Kolka and Ying Wang to Director in the Tax Services Department

Thomas Howell Ferguson P.A. CPAs (THF or “the firm”) a professional accounting, assurance, government consulting, and tax services firm headquartered in Tallahassee, Florida, celebrate Stacey Kolka, CPA, and Ying Wang, CPA, on their promotions to Director in the Tax Services Department. Stacey holds 30 years of experience in providing tax and consulting services to a […]

Read More… from Thomas Howell Ferguson P.A. CPAs celebrates the promotions of Stacey Kolka and Ying Wang to Director in the Tax Services Department

2022 Q4 Tax Calendar: Key deadlines for businesses and other employers

Here are some of the key tax-related deadlines affecting businesses and other employers during the fourth quarter of 2022. Keep in mind that this list isn’t all-inclusive, so there may be additional deadlines that apply to you. Contact us to ensure you’re meeting all applicable deadlines and to learn more about the filing requirements. Note: […]

Read More… from 2022 Q4 Tax Calendar: Key deadlines for businesses and other employers

Separating your business from its real estate

Does your business need real estate to conduct operations? Or does it otherwise hold property and put the title in the name of the business? You may want to rethink this approach. Any short-term benefits may be outweighed by the tax, liability and estate planning advantages of separating real estate ownership from the business. Tax […]

Read More… from Separating your business from its real estate

Year-end tax planning ideas for your small business

When is the best time for year-end tax planning for a small business? Now that Labor Day has passed, it’s a good time to think about making moves that may help lower your small business taxes for this year and next. The standard year-end approach of deferring income and accelerating deductions to minimize taxes will […]

Read More… from Year-end tax planning ideas for your small business

How to Treat Business Website Costs for Tax Purposes

These days, most businesses have websites. But surprisingly, the IRS hasn’t issued formal guidance on when website costs can be deducted. Fortunately, established rules that generally apply to the deductibility of business costs provide business taxpayers launching a website with some guidance as to the proper treatment of the costs. Plus, businesses can turn to […]

Read More… from How to Treat Business Website Costs for Tax Purposes

Three Tax Breaks for Small Businesses

Your small- or medium-sized business may be eligible for some tax breaks that aren’t available to larger businesses. Here are some examples. 1. QBI deduction For 2018 through 2025, the qualified business income (QBI) deduction is available to eligible individuals, trusts, and estates. It excludes C corporations or their shareholders. The QBI deduction can be […]

Read More… from Three Tax Breaks for Small Businesses

Important Considerations when Engaging in a Like-Kind Exchange

A business or individual can dispose of appreciated real property without being taxed on the gain by exchanging it. You can defer tax on your gain through a “like-kind” exchange or the Internal Revenue Code Section 1031. What’s a Like-Kind Exchange? A like-kind exchange is a swap of real property held for investment or for […]

Read More… from Important Considerations when Engaging in a Like-Kind Exchange

Tax Obligations when a Business Closes its Doors

Has the ongoing pandemic put your business in a situation where you may have to close its doors? If your business closes its doors, we can assist you during this transition. A business must file a final income tax return and some other related forms for the year it closes its doors. The type of […]

Read More… from Tax Obligations when a Business Closes its Doors

How do taxes factor into an M&A transaction?

Is your business considering an M&A transaction and wondering how it will affect your taxes? Although merger and acquisition (M&A) activity has been down in 2022, companies are still being bought and sold. It’s important to understand how the transaction will be taxed under current law. Here are some tips. Stocks vs. Assets From a […]

Read More… from How do taxes factor into an M&A transaction?

2022 Q3 Tax Calendar: Key Deadlines for Businesses and Other Employers

Here are some of the key tax-related deadlines affecting businesses and other employers during the third quarter of 2022. Keep in mind that this list isn’t all-inclusive, so there may be additional deadlines that apply to you. Contact us to ensure you’re meeting all applicable deadlines and to learn more about the filing requirements. August […]

Read More… from 2022 Q3 Tax Calendar: Key Deadlines for Businesses and Other Employers

Businesses Will Soon Be Able to Deduct More Under The Standard Mileage Rate

Business owners are aware that the price of gas is historically high, which has made their vehicle costs soar. The average nationwide price of a gallon of unleaded regular gas on June 17 was $5, compared with $3.08 a year earlier, according to the AAA Gas Prices website. A gallon of diesel averaged $5.78 a […]

Read More… from Businesses Will Soon Be Able to Deduct More Under The Standard Mileage Rate

Is Your Corporation Eligible For The Dividends-Received Deduction?

There’s a valuable tax deduction available to a C corporation when it receives dividends. The “dividends-received deduction” has a design to reduce or eliminate an extra level of tax on dividends received by a corporation. As a result, a corporation will typically receive taxation at a lower rate on dividends than on capital gains. Ordinarily, […]

Read More… from Is Your Corporation Eligible For The Dividends-Received Deduction?

Can You Deduct the Costs of a Spouse on a Business Trip?

If you own your own company and travel for business, you may wonder whether you can deduct the costs of having your spouse accompany you on trips. The rules for deducting a spouse’s travel costs are very restrictive. First of all, to qualify, your spouse must be your employee. This means you can’t deduct the […]

Read More… from Can You Deduct the Costs of a Spouse on a Business Trip?

Entrepreneurs and Taxes: How Expenses are Claimed on Tax Returns

It is difficult to determine which expenses to claim on tax returns. While some businesses have closed since the start of the COVID-19 crisis, many new ventures have launched. Entrepreneurs have cited a number of reasons why they decided to start a business in the midst of a pandemic. For example, they have more time, […]

Read More… from Entrepreneurs and Taxes: How Expenses are Claimed on Tax Returns

Numerous Tax Limits Affecting Businesses have Increased for 2022

Many tax limits that affect businesses are annually indexed for inflation, and a number of them have increased for 2022. Here’s a rundown of those that may be important to you and your business. Social Security Tax The amount of an employee’s earnings that are subject to Social Security tax is capped for 2022 at […]

Read More… from Numerous Tax Limits Affecting Businesses have Increased for 2022

Businesses with Employees Who Receive Tips may be Eligible for a Tax Credit

If you’re an employer with a business where tipping is customary for providing food and beverages, you may qualify for a federal tax credit involving the Social Security and Medicaid (FICA) taxes that you pay on your employees’ tip income. Basics of the Credit The FICA credit applies with respect to tips that your employees […]

Read More… from Businesses with Employees Who Receive Tips may be Eligible for a Tax Credit

Will the Standard Business Mileage Rate Go Up in 2022? Yes!

After two years of no increases, the optional standard business mileage rate used to calculate the deductible cost of operating an automobile for business will be going up in 2022 by 2.5 cents per mile. The IRS recently announced that the cents-per-mile rate for the business use of a car, van, pickup, or panel truck […]

Read More… from Will the Standard Business Mileage Rate Go Up in 2022? Yes!

There Still May be Time for Your Small Business to Cut 2021 Taxes

Don’t let the holiday rush keep your small business from considering some important steps to reduce your 2021 tax liability. You still have time to execute a few strategies. Purchase Assets Thinking about buying new or used equipment, machinery, or office equipment in the new year? First, you must buy them and place them in […]

Read More… from There Still May be Time for Your Small Business to Cut 2021 Taxes

Businesses Can Show Appreciation — and Gain Tax Breaks — with Holiday Gifts and Parties

With Thanksgiving just around the corner, the holiday season will soon be here. This time of year, your business may want to show its gratitude to employees and customers. Giving them gifts or hosting holiday parties after a year of forgoing them due to the pandemic can show them this gratitude. It’s a good time […]

Read More… from Businesses Can Show Appreciation — and Gain Tax Breaks — with Holiday Gifts and Parties

Get Your Piece of the Depreciation Pie Now With a Cost Segregation Study

Has your business experienced depreciation? Is your business depreciating over a 30-year period the entire cost of constructing the building that houses your operation? If so, you should consider a cost segregation study. It might allow you to accelerate depreciation deductions on certain items, thereby reducing taxes and boosting cash flow. Under current law, the […]

Read More… from Get Your Piece of the Depreciation Pie Now With a Cost Segregation Study

New Per Diem Business Travel Rates Became Effective on October 1

Are employees at your business traveling again after months of virtual meetings? In Notice 2021-52, the IRS announced the fiscal 2022 “per diem” rates that became effective October 1, 2021. Taxpayers can use these rates to substantiate the amount of expenses for lodging, meals, and incidental expenses when traveling away from home. (Taxpayers in the transportation […]

Read More… from New Per Diem Business Travel Rates Became Effective on October 1

2021 Q4 Tax Calendar: Key Deadlines for Businesses and Other Employers

Here are some of the key Q4 tax-related deadlines affecting businesses and other employers during the fourth quarter of 2021. To clarify, keep in mind that this list isn’t all-inclusive, so there may be additional deadlines that apply to you. In addition, contact us to ensure you’re meeting all applicable deadlines and to learn more […]

Read More… from 2021 Q4 Tax Calendar: Key Deadlines for Businesses and Other Employers

Merger and Acquisition Transactions: Be Careful When Reporting to the IRS

Are you currently involved with a merger and acquisition (M&A) transaction? Low-interest rates and other factors have caused global merger and acquisition activity to reach new highs in 2021. Refinitiv, a provider of financial data reports that 2021 is set to be the biggest in M&A history, with the United States accounting for $2.14 trillion […]

Read More… from Merger and Acquisition Transactions: Be Careful When Reporting to the IRS

Tax Breaks to Consider During National Small Business Week

The week of September 13-17 has been declared National Small Business Week by the Small Business Administration. To commemorate the week, here are three tax breaks to consider. 1. Claim Bonus Depreciation or a Section 179 Deduction for Asset Additions Under current law, 100% first-year bonus depreciation is available for qualified new and used property […]

Read More… from Tax Breaks to Consider During National Small Business Week