The Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 (“2010 TRA”), which was enacted at the end of last year, contains several provisions that will likely have an impact on contractors both professionally and personally. The law retains many favorable tax rules that applied in prior years, modifies certain old rules, and…
Most businesses with employees are generally required to buy workers’ compensation insurance. Workers’ compensation insurance is intended to protect your construction company from worker lawsuits that result in employee injury from accidents on the job and to provide medical treatment and compensation for lost income to your injured employees. The cost of paying workers’ compensation…
The flow of cash leaving your business can be a major concern during this economic slump. Of course, this is a sensitive matter, because you do not want to jeopardize long-standing relationships with suppliers or clients. With that in mind, here are several ideas to consider. Arrange to pay large bills at the latest date…
In today’s high-tech world, a small company’s website is an important marketing tool. As a result, it behooves you to keep your company’s website “fresh” and up-to-date. Take note of recent developments in website design. Basic premise:Recent innovations such as smartphones and the iPad are changing the way users access and interact with content. Similarly,…
At long last, revisions to the estate-tax rules were included in the new federal tax legislation signed late last year. The Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010—or “Tax Relief Act of 2010,” for short—creates several estate- and gift-tax breaks for families with a significant amount of assets. But the new…
As a general rule, you can deduct all of your charitable contributions made to qualified organizations (but not contributions for “the use of” qualified organizations). However, deductions for charitable donations may be limited if you give extra-generous gifts or you donate appreciated property. Here’s a brief summary of the main rules. When you donate cash…
April 18, 2011, is a red-letter day for some retirement-savers. It’s the tax return deadline for deciding whether or not to “split” a Roth IRA conversion that occurred in 2010. (The usual April 15th due date has been extended because of the Emancipation Day holiday in Washington, D.C., and the subsequent weekend.) The decision should…
The rules for claiming business car deductions are tough. In lieu of keeping all the required records, you might simplify matters somewhat by using the standard mileage rate. Starting point: To claim deductions for business car expenses, you must establish the percentage of business use of the car and substantiate business expenses. Keep records of…
Not all tax deductions are created equal. In contrast to deductions claimed by itemizers after adjusted gross income (AGI) has been calculated—such as deductions for charitable donations and mortgage interest—other deductions are available prior to the AGI calculation (i.e., “above the line” on Form 1040). Therefore, they can help you reduce your tax liability on…
If you are a small-business owner, you don’t have to sell your business to benefit from a buy–sell agreement. In fact, having a buy–sell agreement may be required under state law for certain companies. Whether mandated or not, having a buy–sell agreement in place is a fundamentally sound business practice. It can protect your family’s…
