The 2017 Tax Cuts and Jobs Act made big changes to the deductibility of meals and entertainment expenses for businesses. This may result in an increase to your tax bill. Let’s take a look at how things stand now. Travel meals 50% deductible Meals in travel status remain 50% deductible. Note that if meals are charged to a hotel room while traveling, the meals portion of the bill will need… Read more
Did you know that businesses can be victims of identity theft? During the first five months of 2017, the IRS found over 10,000 instances of business identity theft, an increase of 250% over 2016, when only 4,000 cases were reported for the entire year. Here are some of the types of scams run by business identity thieves: Create fake W-2s and file individual tax returns for refunds File fraudulent business… Read more
S-corporation shareholders are considered employees of their businesses, so unlike partners in a partnership, they can’t simply deduct unreimbursed business expenses directly on Schedule E as Unreimbursed Partnership Expenses, or UPE. Until the end of 2017, their only option was to deduct home office and other business-related expenses on Schedule A, where it was subject to the 2% of AGI threshold. However, under the Tax Cuts and Jobs Act, signed… Read more