Limited liability company (LLC) members commonly claim that their distributive shares of LLC income (after deducting compensation for services in the form of guaranteed payments) aren’t subject to self-employment (SE) tax. But the IRS has been seeking back taxes and penalties from LLC members it claims have underreported SE income, with some success in court. At the greatest risk are LLC members who are comparable to general partners in a partnership. We can help you assess whether the IRS might successfully claim that you’ve underpaid SE taxes. bit.ly/2TPaPpz
We are looking to add another Accounting Specialist to our team! Please apply at lenhartmason.bamboohr.com/jobs/
The flat 21% federal income tax rate for C corporations under the Tax Cuts and Jobs Act has been great news for these entities and their owners. But some fundamental tax truths for C corporations largely remain the same. For example, although the 21% rate will lower the impact, double taxation is still an important issue to consider, especially if a C corporation owns assets that are likely to appreciate significantly. And C corporation status still generally isn’t advisable for ventures that will incur ongoing tax losses. bit.ly/2HR4rfO
Commercial buildings and improvements generally are depreciated over 39 years, which essentially means you can deduct a portion of the cost every year over the depreciation period. (Land isn’t depreciable.) But special tax breaks that allow deductions to be taken more quickly are available for certain real estate investments. Some were enhanced by the Tax Cuts and Jobs Act (TCJA) and may provide a bigger benefit when you file your 2018 tax return. But there’s one break you might not be able to enjoy due to a drafting error in the TCJA. bit.ly/2FSqG3b
A variety of tax-related limits affecting businesses are annually indexed for inflation, and many have increased for 2019. For example, the Section 179 expensing limit has gone up to $1.02 million from $1 million. Also up are the income-based phase-ins for certain limits on the new-last-year Sec. 199A qualified business income deduction for owners of pass-through entities. And most limits related to employer-sponsored retirement plans, such as 401(k)s, are higher this year. bit.ly/2FKCR1K
We are excited to announce the promotion of Kevin Taucher and Melanie Urwiller to Manager and Rebekah Bennick to Senior Accountant! Kevin, Melanie and Rebekah have worked hard to earn their promotions and we are so very blessed to have them as part of our LMA team. Please join us in congratulating them on this accomplishment!
At our annual tax season kickoff meeting this morning, we had the great pleasure of celebrating several individuals who reached milestone anniversaries with Lenhart, Mason & Associates! We have a firm full of truly amazing people and we couldn't be more proud to have them as co-workers and friends. Please join us in congratulating Clif Hodder, Juanita Jungck and Kevin Taucher on 5 years of service and Melanie Dowler on 15 years of service to our firm and our clients!
A higher IRS mileage rate means larger tax deductions for business miles in 2019. The optional standard mileage rate used to calculate the deductible costs of operating an auto for business has increased by 3.5 cents, to 58 cents per mile. The mileage rate comes into play when businesses don’t want to keep track of actual vehicle-related expenses. But you still must record certain information, such as the mileage, date and destination for each trip. The mileage rate can also be used for reimbursing employees. Many rules and limits apply. bit.ly/2TR1pJM
Estimated tax payments for the 4th quarter of 2018 must be postmarked by Tuesday, January 15th. If you're a quarterly tax payment filer, make sure you get your payment sent by next Tuesday!
It appears we're on track to start the filing season despite the current government shutdown.
Tax season to start Jan. 28, IRS confirms
accountingtoday.com
Despite the shutdown, Commissioner Rettig commits to on-time refunds, too.