Year-End Checklist for Small Business Owners

1. Finish Your Bookkeeping and Reconcile Your Accounts The first step to closing out your books is to make sure all of your financial transactions for the year have been entered into your accounting software. Next you want to make sure your bank and credit card accounts have been reconciled. Reconciling ensures all of your…

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Some Tax Moves You Can Make Before Year End

Check your withholding Check your withholding or estimated taxes. The overhaul, followed by automatic changes to paycheck withholding in 2018, brought bad refund surprises to many filers last spring. As it turned out, overall refunds changed little. For both 2017 and 2018, about three-quarters of filers received refunds, which averaged $2,800. But these results conceal…

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IRS safe harbor for rental real estate Qualified Business Deduction

The Internal Revenue Service is giving rental real estate owners a safe harbor to allow them to claim interests in property as a qualified business deduction. The IRS issued Revenue Procedure 2019-38 on September 24th, finalizing a tax break under section 199A of the Tax Cuts and Jobs Act, giving owners of rental real estate…

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Home Office Deduction for Schedule C Taxpayers

While the TCJA suspended the miscellaneous itemized expense deduction through 2025, and thus the ability of employees to deduct home office expenses, the home office deduction is still available for Schedule C taxpayers. And, if those taxpayers have been using the simplified method of calculating their home office deduction, the actual-expense method may be worth…

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Changes that will impact 2019 individual tax returns

The Form 1040 The IRS has come out with its draft 2019 Form 1040, which is substantially different from the generally reviled 2018 Form 1040. Half of the new schedules that were added in 2018 have been dropped or combined with other schedules, with Schedules 2 and 4 combined, Schedules 3 and 5 combined, and…

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The Changing Landscape of Sales Tax Compliance

With the 2018 Supreme Court decision in South Dakota v. Wayfair, Inc, physical presence is no longer required for a seller to be subject to collecting tax on sales into a state. If a company’s activity demonstrates substantial nexus with a state, the state can require it to collect sales tax. It is still unclear…

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Qualified Opportunity Funds – a new way to defer gains

Qualified Opportunity Funds | Financial Report | Fred Day CPA

Investors looking for a way to defer capital gains have been limited to techniques that only apply to certain types of gains, typically real estate or small businesses. A provision of the Tax Cuts and Jobs Act (TCJA) has created a new investment opportunity that will offer more flexibility and tax benefits for investors looking…

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Five financial controls small businesses should think about implementing

financial controls | Fred Day CPA

Make sure financial functions are delegated to more than one employee. If a single person is responsible for all financial functions (Cash, Accounts Receivable, Accounts Payable, Payroll, General Ledger), it’s easier for misappropriation to occur. Also vacations or extended absences can cause key processes to grind to a halt when there’s nobody cross trained in…

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