Flex Tax and Consulting Group (FTCG)
To provide tax related information to the public
The IRS on Tuesday updated the rules for using per-diem rates to substantiate the amount of ordinary and necessary business expenses paid or incurred. While traveling away from home in light of changes enacted by the law known as the Tax Cuts and Jobs Act (TCJA), P.L. 115-97 (Rev. Proc. 2019-48). The revenue procedure supersedes and […]
Per-diem method clarified in light of TCJA changes Read More »
Among your responsibilities as an employer is the requirement to collect, report, and pay payroll tax as required by federal and state laws. Helping clients avoid employment tax criminal penalties. If you are a corporate officer or other “responsible party,” as defined by the IRS, you may be personally liable for payroll taxes not reported
Helping clients avoid employment tax criminal penalties Read More »
Smaller taxpayers now are afforded greater flexibility. The Protecting Americans From Tax Hikes Act of 2015 (PATH Act), P.L. 114-113, contained several provisions favorable to taxpayers that incur qualified research and development (R&D) expenditures. Perhaps most importantly, it made permanent the previously temporary credit for increasing research activities (R&D credit) and added provisions allowing
Claiming the R&D credit against payroll tax or AMT Read More »
Today, limited liability companies can be found everywhere. With their flexible management structure, LLCs have become a common way to own and operate a business. Professionals (doctors, lawyers, accountants, and engineers), as well as software and computer-based companies and a wide array of other small businesses, are increasingly using this form of organization. LLCs offer
Accounting for LLCs Conversions Read More »
Deciding Between an Asset Sale or Entity Sale Businesses can be sold, and their assets transferred, either through an asset sale or entity sale.1 In an asset sale, the entity sells its tangible and intangible assets to the buyer, while the entity’s owners retain equity in the entity. On the other hand, in an entity sale,
Deciding Between an Asset Sale or Entity Sale Read More »
Many investors are now wondering how to invest in Opportunity Zones themselves. In addition to considerable immediate and long-term tax advantages, Opportunity Zone investments offer wider access to tax incentives. Unlike tax credit programs of the past, Opportunity Zone investments come with significantly fewer restrictions, which opens up access to the new investment option. Despite
How to Invest in Opportunity Zones: Options to Get Started Read More »
Section 1202 tax exclusion provides angel investors and entrepreneurs with a 100% tax break of up to $10 million. Over the past few months, I’ve been surprised to find that very few angel investors and entrepreneurs are aware of one of the most important developments for startups in a long time. If you are
The Secret Angel Investment Tax Credit That Could Save You Millions Read More »
RSU: Two reasons to sell the shares as soon as the RSU vest are: If you were paid a cash bonus, you wouldn’t use the money to buy company stock. So turn the stock bonus into cash by selling the shares immediately. You need to save for short-term goals (e.g., a down payment). It’s better
RSU: WHAT SHOULD I DO WITH COMPANY STOCK? Read More »
Equity Compensation Summary Restricted stock units (RSUs) are one way for companies to grant shares of company stock to employees. The term “restricted” refers to the vesting schedule, or the specified period that must elapse before you’re paid the shares of stock. You pay taxes on the value of the RSUs at vesting. You pay
EQUITY COMPENSATION 101: RSUS (RESTRICTED STOCK UNITS Read More »
Flex Tax and Consulting Group discusses the QSBS election – a method used to sell shares in a C corporation completely or partially income tax-free. Selling shares in a business completely (or partially) income tax-free sounds too good to be true, right? Perhaps not. To the delight of many an owner, if certain qualifications are
Before Dec. 31, think about how you can help your tax situation for this year. By following year-end tax tips, you can prepare in 2019 to save on taxes due April 15, 2020. Compare standard versus itemized deductions — Your current or planned 2019 itemized deductions might be more than your standard deduction. If so,
IRS rolled out a new tool to prevent nasty refund surprises at tax time This tax season a bunch of stories hit the press full of taxpayer grumbling about bigger bills and smaller refunds. If this happened to you, that might be a cue to adjust the amount that your employer (or you, if you’re
TIME FOR A WITHHOLDING CHECKUP? Read More »
Home- and Mortgage-Related Deductions Mortgage interest deductions capped In the past, homeowners who took itemized deductions could count interest payments on debt related to buying, building or “substantially improving” a home — on debt up to $1 million. That’s been capped at $750,000 and applies to homes purchased after Dec. 15, 2017. Homes bought prior
INVESTMENT-SPECIFIC INTEREST AND TAXES Read More »
With so many forms to complete and numbers to keep track of, tax preparation can quickly become a stressful, time-consuming activity—testing the limits of your patience and taking time away from what’s important. But with some careful record-keeping and organization, you can take away some of that stress and make filing next year’s tax return
FOUR TAX PREPARATION TIPS TO CONSIDER FOR 2020 Read More »
Although nearly 200 million Americans file tax returns every year, not everyone has to. But new tax laws and other filing requirements may have changed. Whether some of these citizens who haven’t had to file before legally require to file a tax return now. Previously, your age, income level, and filing status (married, single, etc.)
DO I HAVE TO FILE TAXES? Read More »
IRS taxes on your net investment income can add up quickly, putting a serious dent in what you’ve made over the past year. Fortunately, the investment tax and interest deduction worksheet may provide a way to offset some of that cost. Help ensure more of that money stays in your pocket. Start by Learning What is
USING THE INVESTMENT TAX AND INTEREST DEDUCTION WORKSHEET Read More »
You can’t avoid federal income taxes. No matter who you are or who you work for, taxes will withheld from your paycheck which can sometimes amount to a sizable chunk of your earnings. Fortunately, there’s the W4 tax from, which allows a bit of latitude when it comes to what your employer can withhold each
WHAT ARE W4 ALLOWANCES? Read More »
You’ve submitted your tax return for the year, so now what do you do? Instead of shoving all your records into a disheveled pile in a closet, now is a good time to get organized. Here are some tips on organizing tax records after you file to make sure you’re ahead of the game next year.
Organized Your Tax Paperwork Read More »
Depending on your business type, there are different ways to prepare and file your taxes. When it’s time to file a federal income tax return for your small business, there are various ways you can do it, depending on whether you run the business as a sole proprietorship or use a legal entity such as
How to File Federal Income Taxes for Small Businesses Read More »
Here are the taxes coming out of your paycheck — and how you can change them. Payroll taxes, including FICA tax, are what your employer deducts from your pay and sends to the IRS, state or other tax authority on your behalf. Here are the key factors, and why it’s important to monitor your withholding tax.
How FICA Tax and Withholding Tax Work in 2019 Read More »
What are restricted stock units (RSUs)? When companies offer equity to employees, they usually offer stock options (like ISOs or NSOs) or restricted stock units (RSUs). You typically don’t get to choose which type of stock you receive; instead, what you receive depends on your role and the size, stage, and preferences of your company. But regardless of
How do I verify capital gain for ESPP and RSU? Read More »
Transaction fees are part of the cost of doing business when you trade stocks. One of the fundamental ways you can make money in the stock market is by buying low and selling high. If you sell your stock for more than you paid for it, you have a profit. The Internal Revenue Service considers
Are Stock Transaction Fees Tax-Deductible? Read More »
Just when you were starting to get comfortable with your annual chore of tax filing, things changed. The 2018 tax reform bill hit the scene. Over the past year, you’ve heard about updates ranging from tax rates to deductions, and your head is spinning. Not that you’ve ever loved tax season (who does?), but now
Your 2019 Taxes: What You Need to Know About the Tax Reform Bill Read More »
When it comes to personal service income, all wages and any other compensation for services performed in the United States are generally considered to be from sources in the United States. The place, where the personal services performed, generally determines the source of the personal service income. Regardless of where the contract was made, or
Do not pay tax to US if you perform your service outside US – Personal Service Income Read More »
An A/B/C Trust (sometimes referred to as a “Q-TIP” or “Qualified Terminable Interest Property” Trust) is similar to an A and B Trust in purpose and function. However, an A/B/C Trust is for married couples with estates that are clearly above the estate tax exemption amount. The benefit of an A/B/C Trust as opposed to
