The Federal Unemployment Tax Act (FUTA) is a law that imposes a federal unemployment tax on employers. The tax is used to fund state unemployment programs. FUTA is imposed on all employers that pay wages for work performed in the United States. The tax is calculated as a percentage of the wages paid to employees. … Read more
Form 2106: Definition of Employee Business Expenses Is payment of employee salaries an expense? Yes, payment of employee salaries is an expense for a small business. The salaries paid to employees are typically one of the largest expenses for a small business. Can I deduct home office expenses if I am an employee? Yes, you … Read more
Bonus depreciation is an accounting method that allows businesses to accelerate the depreciation of certain assets. This means that businesses can deduct a larger portion of the cost of the asset in the year it is purchased, rather than spreading the deduction out over the asset’s useful life. Bonus depreciation can be a useful tool … Read more
A cascade tax is a tax levied on each successive stage in the production or sale of a good or service. The tax is typically imposed at each step in the supply chain, with the tax amount increasing at each stage. This type of tax can be very burdensome for businesses, as it can increase … Read more
How to Make an 83(b) Election: A Tax Strategy Guide Can you make an 83b election on non qualified stock options? An 83(b) election is an irrevocable election made by an employee to be taxed on the fair market value of restricted stock at the time of grant, rather than when the restrictions lapse. The … Read more
Small Business Tax Guide (IRS Publication 334) Can LLC write off gym membership? Yes, an LLC can write off gym membership as a business expense. This is because the LLC can show that the gym membership is necessary for the business, and that it is used for business purposes. What are the small business categories? … Read more
A consolidated tax return is a tax return filed by a group of companies that are related to each other as defined by the Internal Revenue Code. The purpose of filing a consolidated return is to allow the group to be taxed as a single entity. The consolidated return is filed by the parent company … Read more
Schedule K-1 Federal Tax Form: What It Is and Who Needs It Does every business have a k1? The answer is no, not every business has a k1. A k1 is only required for businesses that are organized as partnerships or LLCs. Do I have to pay taxes on k1 income? “K1” income is income … Read more
The First-Year Allowance (FYA) is a tax relief available to small businesses in the United Kingdom. It allows businesses to claim a 100% deduction on certain qualifying expenditure in the year it is incurred. The allowance is intended to encourage businesses to invest in plant and machinery. The FYA is available on a wide range … Read more
The Accumulated Earnings Tax is a tax on the earnings of a corporation that have not been paid out as dividends. The tax is imposed at a rate of 20 percent on the accumulated earnings that exceed the corporation’s “reasonable needs.” The purpose of the tax is to discourage corporations from accumulating earnings and to … Read more
