Keep Tax Reform Proposals in Mind When Making Last-Minute Year-End Moves

Jennifer Deroin Blog, Uncategorized

As 2017 winds down, it’s time to consider making some moves to lower your federal income tax bill and position yourself for tax savings in future years. This year, the big unknown factor is whether or when major tax reform proposals will be enacted.

Even if all goes according to the GOP timeline, the changes generally won’t take effect until next year at the earliest.  So your 2017 return will follow the current rules. Here are five year-end moves for you to consider as Congress works on tax reform.

1. Prepay Deductible Expenditures

If you itemize deductions, accelerating deductible expenditures into this year to produce higher 2017 write-offs makes sense if you expect to be in the same or lower tax bracket next year.… Continue Reading...

Do You Know the Tax Implications of Your C Corp.’s Buy-sell Agreement?

Jennifer Deroin Uncategorized

Private companies with more than one owner should have a buy-sell agreement to spell out how ownership shares will change hands should an owner depart. For businesses structured as C corporations, the agreements also have significant tax implications that are important to understand.

Buy-sell basics

A buy-sell agreement sets up parameters for the transfer of ownership interests following stated “triggering events,” such as an owner’s death or long-term disability, loss of license or other legal incapacitation, retirement, bankruptcy, or divorce. The agreement typically will also specify how the purchase price for the departing owner’s shares will be determined, such as by stating the valuation method to be used.Continue Reading...

Operating Across State Lines Presents Tax Risks — or Possibly Rewards

Jennifer Deroin Uncategorized

It’s a smaller business world after all. With the ease and popularity of e-commerce, as well as the incredible efficiency of many supply chains, companies of all sorts are finding it easier than ever to widen their markets. Doing so has become so much more feasible that many businesses quickly find themselves crossing state lines.

But therein lies a risk: Operating in another state means possibly being subject to taxation in that state. The resulting liability can, in some cases, inhibit profitability. But sometimes it can produce tax savings.

Do you have “nexus”?

Essentially, “nexus” means a business presence in a given state that’s substantial enough to trigger that state’s tax rules and obligations.… Continue Reading...