Business Tax Articles

When launching a manufacturing company, it's essential to consider the tax implications of start-up costs. Eligible expenses can be deducted or amortized over time, with potential tax benefits depending on the total amount. Understanding these tax treatments helps ensure a strong financial foundation for your new business.

Website costs for businesses are subject to general tax rules, with specific considerations for hardware and software. Hardware costs can be deducted with bonus depreciation or under Section 179, with limits and phaseouts for each. Purchased software and license fees are generally deductible as ordinary business expenses. Payments to third-party developers are also deductible. Start-up website costs can be partially deducted or amortized, depending on the total amount. For precise guidance on handling these expenses, consult with a tax professional.

There are various tax obligations to handle when shutting down a business due to economic challenges. Filing final tax returns, paying outstanding taxes, cancelling an Employer Identification Number (EIN), and issuing final wage and tax statements to employees are some of the many responsibilities of business owners face when closing their doors.

The IRS on June 21 announced in IR-2024-171 a revised draft version of Form 6765, Credit for Increasing Research Activities. These revisions, influenced by comments received from external stakeholders, come after the IRS’s ongoing efforts to impose stricter documentation requirements on taxpayers claiming the research credit.

To avoid penalties on your next quarterly estimated tax payment, your business should aim to pay the minimum required estimated tax using one of four methods: the current year method, the preceding year method, the annualized income method, or the seasonal income method. 

For business owners contemplating a transition from a C corporation to an S corporation, it’s important to be aware of the tax implications that could arise. Here are four key tax considerations to keep in mind during the conversion process.

When acquiring a business, it’s crucial to consider the tax implications of the transaction’s structure. Proper planning can optimize tax outcomes post-acquisition.

For closely held C corporation shareholders, incorporating third-party or owner debt into your capital can be tax-efficient due to lower income tax rates and avoiding double taxation on dividends. Consult with us for tailored advice.

Partnership owners may incur costs associated with client entertainment, transportation for meetings, professional development materials, and home office expenses. How are these expenses deducted?

Businesses usually try to delay taxable income and speed up deductions. Sometimes, the reverse strategy is better.