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The Thomas Howell Ferguson Blog

How can you build a golden nest egg if you’re self-employed?

If you own a small business with no employees (other than your spouse) and want to set up a retirement plan, consider a solo 401(k) plan. This is also an option for self-employed individuals or business owners who wish to upgrade from a SIMPLE IRA or Simplified Employee Pension (SEP) plan. A solo 401(k), also […]

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Advantages of keeping your business separate from its real estate

Does your business require real estate for its operations? Or do you hold property titled under your business’s name? It might be worth reconsidering this strategy. With long-term tax, liability and estate planning advantages, separating real estate ownership from the business may be a wise choice. How taxes affect a sale Businesses that are formed […]

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Understanding your obligations: Does your business need to report employee health coverage?

Employee health coverage is a significant part of many companies’ benefits packages. However, the administrative responsibilities that accompany offering health insurance can be complex. One crucial aspect is understanding the reporting requirements of federal agencies such as the IRS. Does your business have to comply, and if so, what must you do? Here are some […]

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Thomas Howell Ferguson P.A. CPAs (THF) announces promotions within the Tax Services department

Thomas Howell Ferguson P.A. CPAs (THF) is proud to announce the promotion of several team members within its Tax Services department. The newly promoted individuals and their respective titles are as follows: Director                                Nicholas (Nick) R. Gilpin, CPA       Manager   Victoria Cronin, Peter Fleck, and Becky Register, CPA. Senior Jay Cumbie, Erin Dupont, and Arianna Neely. […]

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2024 Q4 calendar: Key tax deadlines for businesses and other employers

Here are some of the key tax deadlines affecting businesses and other employers during the fourth quarter of 2024. 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: […]

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Understanding the new rules for Overtime-Exempt status employees

In April 2024, the US Department of Labor (DOL) released new rules regarding overtime-exempt salary pay for employees. This applies to the majority of professional and office workers who receive a fixed salary each pay period, with no extra payment for overtime hours. The recent changes to overtime-exempt status have increased the minimum salary requirement […]

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Cash or accrual accounting: What’s best for tax purposes?

Your businesses may have a choice between using the cash or accrual method of accounting for tax purposes. The cash method often provides significant tax benefits for those that qualify. However, some businesses may be better off using the accrual method. Therefore, you need to evaluate the tax accounting method for your business to ensure […]

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Navigating tax complexities: Craft partnership agreements and LLC operating agreements with precision

Partnerships are often used for business and investment activities. So are multi-member LLCs that are treated as partnerships for tax purposes. A major reason is that these entities offer federal income tax advantages, the most important of which is pass-through taxation. They also must follow some special and sometimes complicated federal income tax rules. Governing […]

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Closing a business involves a number of tax responsibilities 

The rising cost of living and other economic factors have caused many businesses to close their doors. If this is your situation, we can help you, including taking care of various tax responsibilities. Steps in closing a business A business must file a final federal income tax return and some other related forms the year […]

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It’s time for your small business to think about year-end tax planning

With Labor Day in the rearview mirror, it’s time to take proactive steps that may help lower your small business’s taxes for this year and next. The strategy of deferring income and accelerating deductions to minimize taxes can be effective for most businesses, as is the approach of bunching deductible expenses into this year or […]

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Reasons an LLC might be the ideal choice for your small to medium-sized business

Choosing the right business entity is a key decision for any business. The entity you pick can affect your tax bill, your personal liability, and other issues. For many businesses, a limited liability company (LLC) is an attractive choice. You can structure it to resemble a corporation for owner-liability purposes. You can also structure the […]

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Help ensure your partnership or LLC complies with tax law

When drafting partnership and LLC operating agreements, various tax issues must be addressed. This is also true of multi-member LLCs that are treated as partnerships for tax purposes. Here are some critical issues to include in your agreement so your business remains in compliance with federal tax law. 1. Identify and describe guaranteed payments to […]

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Understand how your business will be taxed in a merger or an acquisition(M&A)

In recent years, merger and acquisition (M&A) activity has been strong in many industries. If your business is considering a merger or an acquisition with another business, it’s important to understand how the transaction will be taxed under current law. Stocks vs. assets From a tax standpoint, you can basically structure a transaction in two […]

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Thomas Howell Ferguson P.A. CPAs (THF) receives “Best of the Best Firms” 2024 recognition by INSIDE Public Accounting

Thomas Howell Ferguson P.A. CPAs (THF), a top 200 accounting firm, is recognized as one of the INSIDE Public Accounting (IPA) “Best of the Best Firms” for 2024. As reported by IPA, “IPA names 75 Best of the Best CPA firms – including 60 firms over $10 million in net revenue, 10 under $10 million, […]

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Hope for pre-election legislative action on R&E expensing, other tax relief, ends in the Senate

(authored by RSM US LLP) Senate does not advance House-passed measure that would have temporarily restored R&E expensing, full bonus depreciation, and an EBITDA based interest deduction limitation standard […]

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Consider borrowing from your corporation but structure the deal carefully

Have you considered borrowing funds from your corporation? If you own a closely held corporation, you can borrow funds from your business at rates that are lower than those charged by a bank. However, it’s important to avoid certain risks and charge an adequate interest rate. Basics of this strategy Interest rates have increased over […]

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Business website expenses: How they’re handled for tax purposes

Most businesses have websites today. Despite their widespread use, the IRS hasn’t issued formal guidance on when website costs can be deducted. But there are established rules that generally apply to the deductibility of business expenses and provide business taxpayers launching a website with some guidance about proper treatment. In addition, businesses can turn to […]

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Be aware of the tax consequences of selling business property

If you’re selling property used in your trade or business, you should understand the tax implications. There are many complex rules that can potentially apply. To simplify this discussion, let’s assume that the property you want to sell is land or depreciable property used in your business. In addition, you have held it for more […]

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If your business has co-owners, you probably need a buy-sell agreement 

Are you buying a business that will have one or more co-owners? Or do you already own one fitting that description? If so, consider installing a buy-sell agreement. A well-drafted agreement can do these valuable things: Agreement basics There are two basic types of buy-sell agreements: Cross-purchase agreements and redemption agreements (sometimes called liquidation agreements). […]

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Should you convert your business from a C to an S corporation?

Choosing the right business entity has many implications, including the amount of your tax bill. The most common business structures are sole proprietorships, partnerships, limited liability companies, C corporations and S corporations. In some cases, a business may decide to switch from one entity type to another. Although S corporations can provide substantial tax benefits over C corporations in […]

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Inflation enhances the 2025 amounts for Health Savings Accounts

The IRS recently released guidance providing the 2025 inflation-adjusted amounts for Health Savings Accounts (HSAs). They adjust these amounts each year based on inflation. They announce the adjustments earlier in the year than other inflation-adjusted amounts. This allows employers to get ready for the next year. Fundamentals of HSAs A trust creates or organizes an […]

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Hiring your child to work at your business this summer

With school out, you might be hiring your child to work at your company. In addition to giving your child some business knowledge, you and your child could reap some tax advantages. Benefits for your child There are special tax breaks for hiring your offspring if you operate your business as one of the following: […]

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2024 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 2024. 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. July […]

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The tax advantages of including debt in a C corporation capital structure

Let’s say you plan to use a C corporation to operate a newly acquired business. Or perhaps you have an existing C corporation that needs more capital. You should know that the federal tax code treats corporate debt more favorably than corporate equity. So, for shareholders of closely held C corporations, it can be a tax-smart move to […]

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Figuring corporate estimated tax

Now is a good time to review the rules for computing corporate federal estimated tax payments. The next quarterly estimated tax payment deadline is June 17 for individuals and businesses. You want your business to pay the minimum estimated tax amount without triggering the penalty for underpayment of estimated tax. Four possible options The required installment […]

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When partners pay expenses related to the business

It’s not unusual for a partner to incur expenses related to the partnership’s business. This is especially likely in service partnerships such as architecture or law firms. For example, service partnership partners may incur entertainment expenses when developing new client relationships. They may also incur expenses for transportation to and from client meetings, professional publications, […]

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Tax tips when buying the assets of a business

Merger and acquisition activity in several sectors is rebounding in 2024. If you’re buying a business, you want the best results possible after taxes. You can potentially structure the purchase in two ways: In this article, we’re going to focus on buying assets. Asset purchase tax basics You must allocate the total purchase price to […]

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How to grow your business with a new partner: Here are some tax considerations

Are you wondering how to grow your business by adding a new partner? There are several financial and legal implications when adding a new partner to a partnership. An example: You and your partners plan to admit a new partner. The new partner will acquire a one-third interest in the partnership by making a cash […]

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When businesses might consider adopting an alternative approach to managing income and deductions

Businesses usually want to delay recognition of taxable income into future years and accelerate deductions into the current year. But when is it wise to do the opposite? And why would you want to? One reason might be tax law changes that raise tax rates. The Biden administration has proposed raising the corporate federal income […]

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Valuable tax break when applying the research credit against payroll taxes

The credit for increasing research activities, often referred to as the research and development (R&D) credit, is a valuable tax break available to certain eligible small businesses. Claiming the credit involves complex calculations, which we’ll take care of for you. Be aware that there are two additional features that are especially favorable to small businesses: […]

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Thomas Howell Ferguson P.A. CPAs (THF) welcomes Tax Services Senior Manager Yun (Fong) Yan, CPA and Client Accounting Services Manager Christine (Chris) Sawchyn to the firm

Thomas Howell Ferguson P.A. CPAs (THF) or “the Firm,” a leading accounting firm, welcomes Tax Services Senior Manager Yun (Fong) Yan, CPA and Client Accounting Services (CAS) Manager Christine (Chris) Sawchyn to the Tallahassee office location. Fong Yan, CPA, joined the firm with over 20 years of experience in C and S corporations, partnerships, and […]

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Thomas Howell Ferguson P.A. CPAs (THF) Wins ClearlyRated’s 2024 Best of Accounting Award For Service Excellence

Thomas Howell Ferguson P.A. CPAs (THF), a leading accounting firm, announced today that they have won the Best of Accounting Award for providing superior service to their clients. ClearlyRated’s Best of Accounting® Award winners have proven to be industry leaders in service quality based entirely on ratings provided by their clients. On average, clients of […]

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Key 2024 inflation-adjusted tax parameters for small businesses and their owners

The IRS recently announced various inflation-adjusted federal income tax amounts. Here’s a rundown of the amounts that are most likely to affect small businesses and their owners. Rates and brackets When discussing the inflation-adjusted tax amounts, let’s first begin with rates and brackets. If you run your business as a sole proprietorship or pass-through business […]

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What’s the best accounting method route for business tax purposes?

What’s the best accounting method? Businesses have two accounting methods to figure their taxable income: cash and accrual. Many businesses have a choice of which method to use for tax purposes. The cash method often provides significant tax benefits for eligible businesses, though some may be better off using the accrual method. Thus, it may […]

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Beneficial Ownership Interest (BOI) Reporting Requirements 

The Corporate Transparency Act (signed into law on January 1, 2021) expanded anti-money laundering laws and created new reporting requirements for certain companies doing business in the US Beginning in 2024. Many small businesses are now required to report information about their beneficial owners to the Financial Crimes Enforcement Network (FinCEN) to create a national […]

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