Business Planning


Last week, someone approached me with this situation, “I closed my S corporation with the state in 2017. However, during 2018 I’ve had unexpected expenses from the defunct S corporation. I paid those expenses from personal funds. Where can I deduct those expenses? You should have seen his face when I told him that he was out of luck. Neither he nor the S corporation can deduct those expenses. No Deduction for the S Corporation...

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  You likely have heard conflicting information on the deductibility of business meals with clients and prospects. I have spent time researching this issue, and my conclusion is that tax reform eliminated tax deductions for business meals with clients and prospects.   Before the 2017 The Tax Reform Act there were two conditions to client and prospect meals:   Required you to establish that the meal was directly related...

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Finally, lawmakers did the right thing by increasing the luxury auto depreciation limits on business cars. The old luxury limits were unrealistic, punitive, unfair, and discriminatory against any car that cost more than $15,800. The new limits don’t create parity in all respects, but they are a big improvement. If you bought a car in 2017 and paid more than $15,800, you were driving a luxury car that lawmakers punished you for by...

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Are you thinking about starting a new business? Do you know someone is thinking of starting a new business? If so, congratulations. This is very exciting, and I want to make sure you maximize your tax benefits with this new venture. In a recent tax court case (Tizard v Commissioner), an ex-Air Force pilot sought to start an aviation business. Her idea was to offer aerial land surveys, photography, flight charters, and aviation safety...

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Prior to conducting any business venture, be it opening a business for the first time, launching a new product, or even increasing your prices it is essential to conduct market research to ensure you get the result you want. If you fail to carry out due diligence within your market research you may end up making a mistake that will cost, you both money and time. Market research is one of the efficient and cost effective ways a...

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