Adding a new partner in a partnership has several financial and legal implications. Let’s say you and your partners are planning to admit a new partner. The new partner will acquire a one-third interest in the partnership by making a cash contribution to it. Let’s further assume that your bases in your partnership interests are sufficient so that the decrease in your portions of the partnership’s liabilities because of the new partner’s entry won’t reduce your bases to zero.
As CPAs, we are often asked about federal tax withholding — “How do I know if I am withholding the correct amount?” or “If I change my withholding amount, will I owe less at tax time?” By understanding how federal tax withholding works, you can avoid a surprise during tax season.
You’ve put in the hard work of saving for college, and now it’s time to start using those 529 plan assets to help with a family member’s education-related costs. But before you begin withdrawing those funds, it’s important to understand the difference between qualified and nonqualified expenses.
Operating as an S corporation may help reduce federal employment taxes for small businesses in the right circumstances. Although S corporations may provide tax advantages over C corporations, there are some potentially costly tax issues that you should assess before making a decision to switch.
The federal government is helping to pick up the tab for certain business meals. Under a provision that’s part of one of the COVID-19 relief laws, the usual deduction for 50% of the cost of business meals is doubled to 100% for food and beverages provided by restaurants in 2022 (and 2021).
Here are some of the key tax-related deadlines that apply to businesses and other employers during the second quarter of 2022. Keep in mind that this list isn’t all-inclusive, so there may be additional deadlines that apply to you. You should speak with your CPA to ensure you’re meeting all applicable deadlines and to learn more about your filing requirements.
The Commonwealth is providing eligible Massachusetts employers with funding to hire and train new workers. The HireNow program is funded by the American Rescue Plan Act of 2021, and was created in response to the hiring challenges experienced by Massachusetts employers due to the COVID-19 pandemic.
In the cryptocurrency world, NFTs are the latest craze. But what exactly is an NFT?
The credit for increasing research activities, often referred to as the research and development (R&D) credit, is a valuable tax break available to eligible businesses. Claiming the credit involves complex calculations, which we can take care of for you. But in addition to the credit itself, be aware that the credit also has two features that are especially favorable to small businesses:
If you’re in business for yourself as a sole proprietor, or you’re planning to start a business, there are certain tax issues that you should be aware of. Here are eight important issues to consider:
