partnerships Archives

If your business has co-owners, you probably need a buy-sell agreement

Jul 18, 2024 | Small Business

For most business co-owners, the value of their business shares comprises a big percentage of their estates. Having a buy-sell agreement protects co-owners and their heirs and helps avoid hassles with the IRS.

Hiring your child to work at your business this summer

Jul 4, 2024 | Small Business

Hiring your child at your business this summer? It can be a tax-smart idea. Here are the benefits.

When partners pay expenses related to the business

May 2, 2024 | Small Business

If you’re a partner in a partnership business, can you deduct expenses you incur on your personal tax return? Here are the rules.

Year-end tax tip to help your business qualify for the QBI deduction

Dec 28, 2020 | Small Business

If you own a business, you may wonder if you’re eligible to take the qualified business income (QBI) deduction. Sometimes this is referred to as the pass-through deduction or the Section 199A deduction. The QBI deduction: Is available to owners of sole...

Why do partners sometimes report more income on tax returns than they receive in cash?

Aug 3, 2020 | Small Business

If you’re a partner in a business, you may have come across a situation that gave you pause. In a given year, you may be taxed on more partnership income than was distributed to you from the partnership in which you’re a partner. Why is this? The answer lies in the...

Good records are the key to tax deductions under IRS audit

Jul 6, 2020 | Individuals, Small Business

If you operate a small business, or you’re starting a new one, you probably know you need to keep records of your income and expenses. In particular, you should carefully record your expenses in order to claim the full amount of the tax deductions to which you’re...

Does your small business have an emergency succession plan?

Jun 22, 2020 | Small Business

For business owners, succession planning is ideally a long-term project. You want to begin laying out a smooth ownership transition, and perhaps grooming a successor, years in advance. And you shouldn’t officially hand over the reins until many minute details have...

How’s your buy-sell agreement doing these days?

Jun 15, 2020 | Small Business

Most companies wouldn’t go into business without some basic types of insurance in place, such as property coverage and liability coverage. For a company with more than one owner, there’s an additional type of risk-management arrangement that needs to be established: a...

Which entity is best for your new or existing small business?

Jul 15, 2019 | Small Business

The Tax Cuts and Jobs Act (TCJA) has changed the landscape for business taxpayers. That’s because the law introduced a flat 21% federal income tax rate for C corporations. Under prior law, profitable C corporations paid up to 35%. The TCJA also cut individual income...

When are LLC members subject to self-employment tax?

Mar 25, 2019 | Small Business

Limited liability company (LLC) members commonly claim that their distributive shares of LLC income — after deducting compensation for services in the form of guaranteed payments — aren’t subject to self-employment (SE) tax. But the IRS has been cracking down on LLC...

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