Business Tax Articles

Hiring your child for your small business during the summer can offer significant tax benefits. You can transfer business earnings to your child to save on income taxes, reduce Social Security tax if your business isn't incorporated, and provide retirement savings options for your child. Additionally, this opportunity helps your child understand your business, earn extra money, and learn responsibility.

Failing to comply with employment tax obligations can lead to severe consequences, including the Trust Fund Recovery Penalty (TFRP). This penalty imposes personal liability and financial hardship on business owners and responsible parties who willfully fail to collect, account for, and pay over employment taxes.

The Trump administration's policies could significantly impact U.S. manufacturers, particularly in the areas of tariffs and trade policies, the Tax Cuts and Jobs Act (TCJA), and clean energy tax incentives. Manufacturers need to stay informed about these rapidly changing policies to navigate their impact on business.

The evaluation of an S Corporation for a new business venture highlights several advantages. Shareholders benefit from limited liability for corporate debts, and early losses can be deducted on personal tax returns. Additionally, the Qualified Business Income deduction offers potential tax benefits.

The Tax Cuts and Jobs Act introduced Section 163(j), limiting business interest expense deductions. Businesses can manage this limit by opting out for certain industries, capitalizing interest expenses, or reducing overall interest expenses.

There are complexities to federal income tax rules for individual taxpayers facing substantial business losses. We explain the disallowance rule for excess business losses, the limitations on deducting net operating losses (NOLs), and how these rules apply to partnerships, LLCs, and S corporations.

The article provides a comprehensive guide for employers on managing taxes and tips for service workers. It covers the current status of tip taxation, defines tips for tax purposes, outlines criteria for tip classification, and details employer responsibilities and record-keeping requirements.

For 2025, many business tax limits have increased due to inflation adjustments. Key changes include higher limits for Section 179 expensing, standard mileage rates, and various retirement plan contributions.

In 2025, both new and used heavy SUVs, pickups, and vans can offer significant first-year depreciation write-offs if used more than 50% for business purposes. Additionally, setting up a home office can further enhance tax savings by allowing you to qualify for home office deductions, making it easier to pass the over-50%-business-use test for your heavy vehicle.

Section 1231 of the Internal Revenue Code governs the tax treatment of gains and losses from the sale of specific business properties. Gains from Section 1231 assets can be treated as long-term capital gains, while losses can be treated as ordinary losses, providing favorable tax outcomes. However, the nonrecaptured Section 1231 loss rule can affect the timing and treatment of these gains and losses.