H2R CPA Blog

Higher mileage rate in 2019 may mean larger tax deductions for business miles

This year, the optional standard mileage rate used to calculate the deductible costs of operating an automobile for business increased by 3.5 cents, to 58 cents per mile, the highest level since 2008. As a result, you might be able to claim a larger deduction for vehicle-related expense for 2019 than you can for 2018. … Read more

Home office deduction: Actual expenses vs. simplified method

If you run your business from your home or perform certain functions at home that are related to your business, you might be able to claim a home office deduction against your business income on your 2018 income tax return. There are now two methods for claiming this deduction: the actual expenses method and the … Read more

Gift and estate tax returns: What you need to know

by H2R CPA Team ​ Have you made substantial gifts of wealth to family members? Or are you the executor of the estate of a loved one who died recently? If so, you need to know whether you must file a gift or estate tax return. Filing a gift tax return Generally, a federal gift … Read more

ESOPs can benefit retirement and estate plans for business owners

by H2R CPA Team Employee stock ownership plans (ESOPs) offer closely held business owners an exit strategy and a tax-efficient technique for sharing equity with employees. But did you know that an ESOP can be a powerful estate planning tool? It can help you address several planning challenges, including lack of liquidity and the need … Read more

Additional QBI deduction guidance provided by IRS

by H2R CPA Team ​When President Trump signed into law the Tax Cuts and Jobs Act (TCJA) in December 2017, much was made of the dramatic cut in corporate tax rates. But the TCJA also includes a generous deduction for smaller businesses that operate as pass-through entities, with income that is “passed through” to owners … Read more

Underpayment tax penalties waived for 2018

by H2R CPA Team The IRS has some good news for certain taxpayers — it’s waiving underpayment penalties for those whose 2018 federal income tax withholding and estimated tax payments came in under their actual tax liabilities for the year. The waiver recognizes that the Tax Cuts and Jobs Act’s (TCJA’s) overhaul of the federal … Read more

A Quick Summary of Major Tax Law Changes

by H2R CPA The start of 2019 means the 2018 income tax filing season will soon be upon us. After year end, it’s generally too late to take action to reduce 2018 taxes. Business owners may, therefore, want to shift their focus to assessing whether they’ll likely owe taxes or get a refund when they … Read more

Business Interest Expense Deductions: Proposed regulations issued by IRS

by H2R CPA Team​In April 2018, the IRS released temporary guidance on the amended limit on deductions for business interest expense for tax years beginning in 2018. Taxpayers were allowed to rely on that guidance while waiting for regulations. The IRS has now published proposed regulations that taxpayers can rely on until final regulations are … Read more

Will the new QBI tax deduction impact your retirement contribution?

by Kathy D. Sisler, CPA, CGMA Before the Tax Cuts and Jobs Act, owners of pass-through entities and sole proprietors embraced the idea of a retirement plan for their employees, since it provided them with a tax deduction and permitted them to set aside retirement money for themselves. If you’re a professional firm, a retirement plan … Read more

Year-end tax planning for businesses in light of the Tax Cuts and Jobs Act

by H2R CPA Team The passage of the Tax Cuts and Jobs Act (TCJA) in late 2017 brought significant changes to the tax landscape. As the first tax season under the law looms on the horizon, new year-end tax planning strategies are emerging. Meanwhile, some of the old tried-and-true strategies have changed and others remain … Read more