4Thought Blog

Attention Pennsylvania and New Jersey Commuters: State Tax Changes are Likely

There may be major state income tax changes coming for those who cross the Delaware River for work. New Jersey Gov. Chris Christie last week announced that he plans to discontinue a long-standing agreement between New Jersey and Pennsylvania allowing taxpayers to pay income tax in the state where they live, not where they work….

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Are You an Airbnb or VRBO Landlord? What You Need to Know for Tax Time

Renting out a vacation property to others can be profitable. If you do this, you must normally report the rental income on your tax return. You may not have to report the rent, however, if the rental period is short and you also use the property as your home. Here are some tax tips from…

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IRS Warns about 'Federal Student Tax' and Other Back-to-School Scams

The IRS is warning taxpayers against telephone scammers targeting students and parents during the back-to-school season and demanding payments for non-existent taxes, such as the “Federal Student Tax.” People should be on the lookout for IRS impersonators calling students and demanding that they wire money immediately to pay a fake “federal student tax.” If the person…

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The Proposed Changes to Valuation Discounts for Family-Owned Businesses: An Update

The IRS recently issued new proposed regulations designed to reduce the ability to take valuation discounts on intra-family transfers of interests in privately-held businesses. These proposed regulations aim to reduce the ability to apply valuation discounts which can affect future estate and gift tax planning. If the proposed regulations are finalized in their current form, they could…

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Manufacturers: Are You Receiving All the Tax Deductions to Which You’re Entitled?

Are you familiar with cost segregation studies, IC –DISCs, R&D tax credits, accelerated depreciation methods and the Domestic Production Activities Deduction? If not, then you may have outgrown your tax advisor and are likely not taking advantage of tax deductions available to you. It is obviously costing you money and decreasing your cash flow.

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Educational Tax Credits in Time for Back to College

If you pay for college for your child or yourself this year, you may receive some tax savings on your federal tax return, even if you’re studying outside of the U.S. Both the American Opportunity Tax Credit and the Lifetime Learning Credit may reduce the amount of tax you owe, but only the AOTC is…

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How McDonald’s Owner/Operators Can Manage Cash While in Growth Mode

Cash flow is the life-blood of any business, be it quick-service restaurants, retail, professional services, construction – it’s what keeps the lights on and ultimately separates success from failure. While positive cash flow is always the goal, there are myriad degrees of positive cash flow. Clearly, working to maximize the level of positive cash flow…

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Attention Family Businesses: IRS Seeks to Change Gift Tax Rules on Minority Interests

It used to be easier to minimize taxes when passing the business baton to the owners next generation, but the IRS is tightening regulations on transfers. But there are steps you can still take to help ease the impact of transition for the future. The IRS just issued new proposed regulations that are designed to…

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Business Owners: Are You Ready for Same Day ACH?

Beginning Sept. 23, 2016, the electronic payment association NACHA has adopted a new rule to allow same-day processing of ACH – or automated clearing house – payments. Currently most ACH payments settle on the next business day. This new rule includes a “Same Day Fee” on each same day transaction that many ACH originators may…

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10 Steps Business Owners Can Take to Prevent Fraud

Lehigh Valley newspapers recently were once again filled with headlines about million-dollar fraud schemes. A bookkeeper was accused of stealing more than $1.4 million from an Emmaus civil engineering and landscape architectural firm and a former purchasing director at Utz Quality Food pleaded guilty to a $1.4 million fraud scheme involving vendor kickbacks.

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