Collect a tip report from employees every pay period
It is the responsibility for every employee to keep track of all their tip money collected. It is unreasonable to conclude that the restaurant manager will know how much cash tip every customer gave. However, Employers must require employees to report their tips, since tips of $20 or more per month are subject to withholding tax and employers are required to pay the employer's portion of those taxes.
If you have questions on tax planning with your restaurant feel free to contact us.
You operate your professional practice as a C corporation. Your spouse rents your office to your C corporation on a triple net lease. Does your spouse qualify for the Section 199A deduction on the rental income, and if not, what can be done about it?
Under the final IRS regulations, your spouse’s rental activity can qualify for the Section 199A deduction in one of three ways:
A single triple net lease rental is generally not a tax code Section 162 trade or business.
Your spouse can’t use the new rental safe harbor for a triple net lease property.
Of the three possible paths to the deduction, you don’t have the trade or business or the rental safe harbor available.
The one way your spouse’s triple net lease rental could qualify is if the property were rented to a commonly controlled pass-through trade or business. Since the ownership of one spouse attributes to the other spouse, you’ve met the commonly controlled requirement. So far, so good.
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When possible, you want to claim that your office in your home qualifies as a principal place of business, because this classification
Take time to remember those who have fallen and appreciate the presence of your loved ones!
Fun Fact: Memorial Day wasn't officially named Memorial Day until 1967, prior to that it was known as Decorations Day.
The Affordable Care Act’s $100-a-day penalty for improper medical reimbursements likely has your attention. And it should. But you can find many reimbursements that are allowed without penalty, including the ability to reimburse Medicare when you have fewer than 20 employees.
Some group insurance plans do not cover Medicare-eligible employees if the group plan covers fewer than 20 employees because:
If you (a) offer group insurance coverage to your fewer-than-20-employee workforce and (b) have one or more of the fewer than 20 employees on Medicare, you may use a health reimbursement account (HRA) or other account-based plan to reimburse Medicare parts B and/or D and Medigap insurance, if you satisfy the following requirements:
Guidance on the application of subchapters C and S of chapter 1 of subtitle A of the Internal Revenue Code (Code) has been made available to tax and accounting professionals. The revenue ruling, 2019-13 provides an answer to:
If, during a former S corporation's post-termination transition period, the corporation distributes cash in redemption of a shareholder's stock and the distribution is characterized as a distribution under § 301 of the Internal Revenue Code (Code), should the corporation reduce its accumulated adjustments account (AAA) pursuant to § 1368 of the Code?
According to the new guidance, RR-19-13 holds that—to the extent a corporation makes such a cash distribution that is subject to section 301 of the Code by reason of section 302(d) of the Code—the cash distribution should reduce the corporation's accumulated adjustments account (within the meaning of section 1368(e) of the Code) to the extent of the proceeds of the redemption according to section 1368 of the Code.
The Tax Cuts and Jobs Act tax reform added new tax code Section 199A, which created a 20 percent tax deduction possibility for you if your rental property (a) has profits and (b) can qualify as a trade or business.
As the law now stands, with rentals that achieve trade or business status, you win. Your business-status rental property creates the following five possible tax benefits for you:
To obtain the benefits listed above, you must have a rental property that qualifies as a trade or business.
We customize tax strategies to address your life and future plans!
Tax reform’s Section 199A deduction often confuses small-business owners and tax professionals alike. It’s quite possible you’ll get a Schedule K-1 from a business that omits the information you need to calculate your deduction.
What do you do?
You have a big problem. Without a properly completed Schedule K-1, your Section 199A deduction is a big fat $0.
Premiums for Medicare health insurance can add up to a substantial sum. That’s especially true if
Fortunately, the premiums can potentially help your tax situation. The dollar benefit of Medicare tax deductions depends greatly on where you can deduct the premiums:
If You Are a Sole Proprietor
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The Month of May was originally the 3rd Month of the Year, until January and February were added to move it to the 5th of the Year. May is also named after the Greek goddess Maia who has also been identified at Bona Dea; the Roman goddess of fertility.
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Spencer Accounting Group, LLC does not provide investment, tax, legal, or retirement advice or recommendations in these blogs. The information presented here is not specific to any individual's personal circumstances.
Keana Spencer is an Accountant, Entrepreneur, and Educator to her clients, with a strong passion. Keana has over 10 years of experience and through her practice, she is a source of knowledge and strategies to her clients.