Recommended Reading: Qualified retirement plans can provide additional tax savings for business owners

by H2R CPA Team Because qualified retirement plan contributions lower the taxable income of business owners of passthrough entities (sole proprietorships, partnerships, S corporations, and LLCs), increasing contributions can qualify business owners for additional tax deductions under the Tax Cuts and Jobs Act that they would not otherwise have been eligible to receive, such as … Read more

Recommended Reading: Paycheck Checkup

by H2R CPA Team The Tax Cuts and Jobs Act changed the way tax is calculated. As a result, the IRS encourages everyone to perform a “paycheck checkup” to see if you have the right amount of tax withheld for your personal situation. People who are especially encouraged to check their withholding using the IRS Withholding … Read more

Recommended Reading: Revisions to Form 1040

Did you know that the IRS is working on reducing the size of Form 1040, eliminating more than 50 lines? ​See article below from Journal of Accountancy for details and contact H2R CPA at 412-391-2920 or with any questions you may have. Form 1040 to be shorter but with more schedules

Tax Alert: State and Local Taxation of Online Sales

by H2R CPA Team​In a much-anticipated ruling that confounded the expectations of many court watchers, the U.S. Supreme Court has given state and local governments the green light to impose sales taxes on out-of-state online sales. The 5-4 decision in South Dakota v. Wayfair, Inc. was met by cheers from brick-and-mortar retailers, who have long … Read more

Pennsylvania Tax Credits: R&D and More

by H2R CPA Team​Do you qualify for Pennsylvania’s R&D tax credit? If so, you can now apply online. The PA Department of Revenue is launching a new online application system for the Research and Development Tax Credit that can be accessed through its website.  All R&D credit applications must be submitted online by 9/15/18 to be eligible for the program. … Read more

PA Tax Update: Corporate Net Operating Loss

by H2R CPA Team​Pennsylvania clarifies the limit on corporate net operating loss deductions. The Department of Revenue said it won’t apply a $3 million cap to tax years starting before Jan. 1, 2017. This follows the Pennsylvania Supreme Court Nextel ruling that the limit violated the state constitution. However, the greater of that cap or … Read more

Recommended Reading: Qualified Business Income Deduction

Are you familiar with the new Qualified Business Income deduction for partnerships, LLCs, S corps, trusts, estates and sole proprietorships? ​See article below from Journal of Accountancy for details and contact H2R CPA at 412-391-2920 or with any questions you may have. Mechanics of the new Sec. 199A deduction for qualified business income

New Tax Rules for Meals and Entertainment

by Nate DeFilippi, CPA, MBA H2R CPA is pleased to provide a summary of the new rules regarding meals and entertainment tax deductions, signed into law with the Tax Cuts and Jobs Act of 2017. We recommend that businesses update general ledgers in accordance with these changes to plan for the 2018 tax year.  In general, the … Read more

PA Delays 1099-MISC Assessments

by Nate DeFilippi, CPA, MBA In response to a request from the Pennsylvania Institute of Certified Public Accountants (PICPA), The Pennsylvania Department of Revenue (DOR) has agreed to delay the implementation of new 1099-MISC withholding requirements. Act 43 of 2017 introduced a new and more complicated withholding requirement for Pennsylvania businesses. Beginning January 1, 2018, … Read more