Business Feed

But some firms, especially if they specialize in lobbying lawmakers, have other considerations in mind for their annual end-of-year festivities. The holiday season is here at offices, too. That means office parties. Oh, yay! OK, some people love office Christmas parties. Anything for free food and libations. And they actually like most of their co-workers. But if you're not one of them, go anyway. Surely you can fake it for a few hours. And, again, free refreshments. Plus, opting out of implicitly required conviviality could hurt your career. Tax-free thanks: Offices throw these parties as a way to thank workers... Read more →


Time's person of the year for 2017 is a lot of people. The magazine selected all the women and men who who publicly spoke about being victims of sexual harassment and abuse as a way to stop it and help others who have been victims, known on social media as the #MeToo movement. Ironically, today's announcement of Time's 90th most notable person (called Man or Woman of the year until 1999) was overshadowed by the continuing sexual harassment controversy in the political world. Sitting and wannabe Senator troubles: Roy Moore, who is seeking Attorney General Jeff Session's former Senate seat... Read more →


Republicans continue to work on their tax reform bills. The House plans/hopes to vote on its bill this week, while the Senate's version, released Nov. 9, is still being analyzed. One area getting a lot of attention is the two bill's differing treatments of pass-through entities. Income from these businesses — which include sole proprietorships, partnerships, limited liability companies (LLC) and S-corporations — is passed through to the business owners, who then report it on their personal tax returns. The issue confronting lawmakers is that these earnings currently are taxed at ordinary income tax rates. Under the new tax reform... Read more →


Across America, special thanks go out this Veterans Day to all the men and women who courageously put on uniforms and served our country whenever and wherever called. But once those proudly-worn uniforms are packed away, former U.S. military members need more than just gratitude. Millions of soldiers, sailors, pilots and National Guard members need our support and help as they return to civilian life. That's why this 11/11 Shout Out Saturday goes to MartketWatch's financial checklist for former military members. And since you come here for tax talk, I don't want to disappoint. Here are a couple of tax... Read more →


Business entities and how they are — and might be — taxed is one of the things complicating the Republican-formulated tax reform bill. The primary motivation for the Republican's new tax reform plan is to lower business tax rates. Major corporations definitely will see relief under the bill (even though many are doing quite well under our current system). But there's concern that smaller businesses won't be so tax reform lucky. In fact, the Tax Cuts and Jobs Act as the bill, as H.R. 1 is known, could make things worse for some so-called pass-through entities. Potential problems for plenty... Read more →


A proposal to limit certain business estate valuation discounts is outta here under the Treasury's finalized list of eight tax regulations it wants to eliminate or substantially revise. Remember back in July when the U.S. Treasury announced eight tax regulations it said were burdensome and needed to be changed or axed? Treasury Secretary Steven Mnuchin and his staff have now finalized what they want to do with these eight rules. Three would be tossed out, including one that many say hurt family-owned and operated businesses. Two would be partially revoked. The final three would be substantially revised. "This is only... Read more →


House Ways and Means Chairman Rep. Kevin Brady of Texas, surrounded by his Republican colleagues, displays a postcard tax return his Party says will be possible under the tax reform framework released today. (Screenshot of C-SPAN video; click image to watch tape.) And so tax reform 2017 begins. Unfortunately, it begins vaguely. The Republican Party today released its "Unified Framework for Fixing Our Broken Tax Code." That long title, which is in dramatic all capital letters on cover of the nine-page document, belies the amount of information it provides. In fact, there are fewer tax details in this latest GOP... Read more →


Owners of small businesses, like these along Story City, Iowa's main street, are hoping federal tax reform will provide them some financial relief. (Photo by Brood_wich via Flickr CC) It looks like the Graham-Cassidy attempt to repeal and replace Obamacare is running out of steam, thanks once again to Arizona GOP Sen. John McCain. That means Capitol Hill can shift its full attention to the tax code. Republicans say they'll release more tax reform details the week of Sept. 25. Small business owners should be happy. Tax reform tops biz concerns: The latest Paychex Small Business Survey, conducted in late... Read more →


One of the major drivers of the latest federal tax reform effort is the corporate tax rate. The Trump Administration is still pushing for a 15 percent corporate tax rate, the White House's budget director, Mick Mulvaney, told CNBC last week. However, just the day before Treasury Secretary Steven Mnuchin conceded a 15 percent rate would be difficult to attain. Meanwhile, one Washington, D.C.-based tax policy group has looked at how much corporate taxes contribute per capita to state coffers. That analysis by The Tax Foundation earns this week's Shout Out Saturday honors. Not a major tax matter: "The corporate... Read more →


Amazon's headquarters (center high rise) dominates downtown Seattle. Now the online retail giant is looking to build a second HQ in another North American city. (Photo courtesy Amazon) In June, Amazon acquired what many Austin residents felt was a part of the city's core, the organic grocer Whole Foods. Now Texas' capital city is looking to get something back from Amazon — the online retailer's second headquarters. But becoming home to that new facility also raises a big question: At what tax cost? Second HQ as big as the first: Amazon announced Sept. 7 that it's looking for a city... Read more →


Happy Labor Day. While many Americans are working on this holiday, others are fortunate to have off this first Monday in September. Whether you're working or not most likely depends on the type of employee you are. The Fair Labor Standards Act (FLSA) does not require employers to pay employees for time not worked, such as vacations or holidays, writes Susan Heathfield for The Balance. Different jobs, different days off: Salaried employees in exempt professional, technical or managerial positions expect paid holidays. Nonexempt, or hourly, employees are less likely to have paid holidays, or they receive fewer such days off... Read more →


Colorfully coiffed "Girls Trip" friends Jada Pinkett Smith, Tiffany Haddish, Regina Hall and Queen Latifah partying in New Orleans. I've been a film fanatic from an early age. It started when I was a back-seat viewer on the family's regular summer night trips to the drive-in. Movies were a much needed break from real life in terrible times, like when Mom took my little brother and me to see "20,000 Leagues Under the Sea" to get us away from the news of JFK's assassination. And the annual airing of "The Wizard of Oz" was must-see TV in our house, especially... Read more →


From 10:17 a.m. Pacific time until 2:47 p.m. Eastern time, give or take a few minutes before and after, on Monday, Aug. 21, millions of Americans will be watching — safely, please! — the first total solar eclipse visible in the continental United States in more than 38 years. The line shows the entire path of totality across the contiguous United States for the Aug. 21, 2017 total solar eclipse. Click image for a larger view. (Map by Ernie Wright, NASA/Goddard/SVS) That also likely will mean a big boost in businesses, both long-established and pop-ups related to the astronomical event... Read more →


Tax reform, or at least tax cuts, will top Congress' agenda when it gets back from August recess. But will Representatives and Senators actually rewrite the tax code the way most Americans want? Today's Shout Out Saturday piece says maybe not. Donald J. Trump reportedly is now backing a corporate tax rate of 20 percent to 25 percent, up from the 15 percent rate included in his April tax overhaul outline. That slightly higher business tax rate jibes with what corporate executives and business lobbyists say is attainable. That, however, is not what American taxpayers want, according to a recent... Read more →


You’ve had enough of being a wage slave. It’s time to start your own business. That means it’s also time to consider the tax implications of becoming your own boss. Here are four tax matters to think about as you plan your move from the corporate cubicle to your own self-employed suite. 1. Select a business structure. How you’ll run your business will affect your taxes. You have several choices. The most common forms (and the federal tax forms required) are: Sole Proprietorship (Schedule C or C-EZ as an attachment to your personal Form 1040, along with Schedule SE to... Read more →


Before you can write off your business expenses, you must show that you were indeed trying to turn a profit. That basic business tax tenet was confirmed by a recent U.S. Tax Court decision. In a summary opinion, Special Trial Judge Daniel A. Guy, Jr., sustained the Internal Revenue Service’s accuracy-related penalty against Eric Zudak based on tax that was reduced by incorrect business expenses claims. The judge held that Zudak wasn’t entitled to a deduction for expenses he paid for his film festival activity because he didn’t conduct the activity in a businesslike manner or engage in the activity... Read more →


India tax officials say their effort to reduce large stashes of illicit cash has led to markedly more tax compliance. Such efforts to get more taxpayers to be honest are ongoing globally, including by the Internal Revenue Service here in the United States. 500 and 1000 Rupee notes that were recently demonetized by the Indian government. It’s no secret that the Internal Revenue Service looks much more closely at business that are cash heavy. The IRS, supported by other government studies, has found that cash intensive companies — which are, as the name indicates, businesses that receives a significant amount... Read more →


Wisconsin workers soon could be working at new Foxconn plant if state lawmakers approve huge tax benefits for the Taiwanese electronics company. Are you worried that your next iPhone will cost more than you planned now that Foxconn is opening a plant in Wisconsin? The Taiwanese electronics supplier will be paying U.S. employees much more — an average of almost $54,000 a year plus benefits annually — than workers who put together Apple products in China. Don't be. Foxconn's American operation won't be making smartphone components. Instead, it will produce liquid-crystal display panels for televisions and computer screens. But Wisconsin... Read more →


"We looked at healthcare and said let's make sure that we do tax reform better and differently." — House Speaker Paul Ryan (R-Wisconsin) talking about what's next legislatively after the GOP failed earlier today to deliver on its seven-year pledge to end Obamacare. House Speaker Paul Ryan has been pushing his "A Better Way" economic and tax plan for years. Will he finally succeed in 2017 as a Republican-led Congress and White House turn their attention to tax reform? Doing a better job in rewriting the tax code than they did during the recent Affordable Care Act repeal and/or replace... Read more →


Alfred Hitchcock nailed it in his 1955 cat burglar-turned-romance starring Grace Kelly and Gary Grant. The pair teamed up, with Grant's character using his expertise as a former jewel thief, to catch a new criminal in the wealthy playground of Monte Carlo, Monaco. (Click film screenshot to watch the movie trailer on YouTube.) The Internal Revenue Service apparently is taking a hint from a Hollywood classic. It's thinking like identity thieves to catch identity thieves. That was among the messages from IRS Commissioner John Koskinen in July 25 media teleconference. Cybercriminals are showing increasing savvy and tax expertise, particularly in... Read more →