4Thought Blog

C Corporations: How to Cash Out and Save Taxes

It’s unclear how long today’s taxpayer-friendly rate environment will last. C corporation shareholders may want to hedge their bets by taking proactive measures to minimize the overall tax hit on corporate income. Here’s a possible strategy that may allow owners to cash out corporate wealth at a relative low tax cost, while providing several other…

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10 Renewed Tax Breaks for Individuals Taxpayers in 2020

A recent spending package signed into law by President Trump on December 20 retroactively resurrects and/or extends several key tax breaks through 2020. It also provides tax relief for victims of federally declared disasters. Here are ten breaks that can benefit eligible individuals.

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Pay Overtime? The New Pay Rates to Know

What is the “regular rate of pay” for a nonexempt employee? The answer is needed when calculating hourly overtime wages, which must exceed base wages by 50%. New regulations from the U.S. Department of Labor (DOL) that take effect January 15 update the definition of “regular rate of pay” to guide your overtime pay calculations.

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Rental Real Estate Owners Can Qualify for QBI Deduction

There’s good news for rental real estate owners regarding the fruitful Qualified Business Income Deduction. The Tax Cuts and Jobs Act introduced a new deduction for individuals, estates and trusts that own interests in so-called “pass-through” business entities for 2018 through 2025. The deduction can equal up to 20% of an owner’s share of qualified…

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Family Business: 7 Tips for Selecting a Successor

Long ago, in some countries, kingdoms used to be passed to the oldest child — and often, the oldest male. While this may have had advantages in ancient monarchies, it has no place in family businesses. In the case of family-owned businesses, it is still sometimes the practice to install the oldest child, and the…

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Manufacturers: Consider Investment Recovery to Boost Profits

Manufacturers – take a look around your facility. If you’ve been building up piles of scrap, excess raw materials, obsolete equipment, returned inventory and spare parts, you probably need an investment recovery program. Idle assets have value to someone and selling them off makes sense for manufacturers. As much as 70 to 90% of every…

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Congress Extends Some Key Individual, Business Tax Benefits

Just in time to avoid a government shutdown, the federal government last week approved new spending bills that extend and change some important tax benefits for both businesses and individuals. Here’s a look at some of the key changes from the Further Consolidated Appropriations Act, 2020. These will go into effect right around the two…

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What to Look for in a Nonprofit CPA Auditor (Video)

Your nonprofit CPA auditor should help you assess opportunities, risks and financing opportunities. They should have connections in the community and a good relationship with your board so your organization can be on solid financial footing.

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Construction: Tips to Make Competitive Bids on Government Contracts

In general, government contracts are awarded to the lowest bidder. Yet prevailing wage laws require contractors to pay wages that are comparable to those for similar work in the same city or geographical area. Such laws can make it difficult for contractors to win public projects. However, you may have an opportunity to reduce costs…

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Important Meals & Entertainment Deduction Changes for McDonald's Franchisees

Tax reform changed the rules on business meals and entertainment. Here’s a reminder of what McDonald’s Owner/Operators should know about the current tax laws regarding employee meals, business meals and entertainment expenses and how best to track them.

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