Buying vs. Leasing Equipment: Which Is Right for Your Business?
The Tax Cuts and Jobs Act (TCJA) provides new and improved tax incentives for buying new and used business equipment for tax years starting in 2018. Some taxpayers may still see benefits from leasing though. When deciding which way to go, here are some important...
Tax Law Expands Accounting Method Options for Small Businesses
The Tax Cuts and Jobs Act (TCJA) included many changes, including that many more businesses can now use the simpler and more flexible cash method of accounting for federal income tax purposes. The TCJA also includes some other tax accounting changes that are good news...
Michigan Court Explains How to Handle Retained Earnings in Divorce Cases
Jensen v. Jensen, 2018 Mich. App. LEXIS 40 (Jan. 9, 2018) This Michigan divorce case involving an S corporation that was the owner’s separate property raised a number of valuation-related questions, including an issue of first impression: Are the earnings a closely...
QBI Deduction Provides Tax Break to Pass-Through Entity Owners
The IRS has recently issued proposed reliance regulations that help clarify the new qualified business income (QBI) deduction that was introduced as part of the Tax Cuts and Jobs Act. The guidance is involved and goes on for hundreds of pages. The IRS explained that...
Inadequate ESOP Valuation Vetting Gets Trustee Into Hot Water
Brundle v. Wilmington Trust N.A. The case involved a short-lived ESOP whose structure was unusual in that the sellers—the principal shareholders in a private security firm—agreed to sell 90% of their shares to the ESOP and exchange the remaining 10% for warrants. The...
Camp Counselors Were Incorrectly Classified as Exempt from Overtime
Violating the Fair Labor Standards Act (FLSA) for 461 summer camp employees is going to cost a Miami prep school almost $700,000 according to the U.S. Department of Labor (DOL). (DOL News Release 18-1191-ATL) After an investigation, the school will pay $635,269 to the...
When Is Service Business Income Eligible for the New QBI Deduction?
The IRS has issued much-anticipated regulations regarding the new deduction of up to 20% of qualified business income (QBI) from pass-through entities. The QBI deduction is a major piece of the Tax Cuts and Jobs Act signed into law in December 2017. The deduction will...
Gen Z May Change How You Manage Employees
Is your company ready for Generation Z? Demographers and generation-focused marketing experts have begun talking about some of the differences they see in Gen Z, the newest group to enter the job applicant pool. There is no current consensus on the start of this...
What’s Next for State Tax Nexus?
The recent Wayfair decision by the U.S. Supreme Court has had a major impact on states that want to collect sales and use taxes. Before this case, economic “nexus” for tax purposes was established only if the seller of goods or services exhibited a “physical presence”...
E-Discovery Can Make or Break a Case
Electronically stored information (ESI), whether emails, spreadsheets, text documents, or others, is routinely requested as evidence in lawsuits. Destroying that data, or being unable to produce it during the discovery process, can result in some harsh legal...