Betts Consulting LLC

02/22/2019

https://www.journalofaccountancy.com/issues/2019/feb/irs-sec-199a-qbi-deduction.html

For the first time this tax season, many taxpayers will be claiming the Sec. 199A deduction, which provides a deduction for 20% of qualified business income.

01/18/2019

Make sure your tax professional takes the time to determine if your LLC or S Corp qualifies for the 20% deduction on qualified taxable income. https://apple.news/A87R909wBRDOfWHipftAV1w

“In 2018, I will report taxable income under $315,000 and file married filing jointly. Do I have to determine if I am in an SSTB in order to take the deduction? Is there any limitation on my deduction?

A8. No, if your 2018 taxable income is below $315,000, if married filing jointly, or $157,500 for all other filing statuses, it doesn’t matter what type of business you are in. You will be able to deduct the lesser of:

a) Twenty percent (20%) of your QBI, plus 20 percent of your qualified REIT dividends and qualified PTP income, or

b) Twenty percent (20%) of your taxable income minus your net capital gains.”

Millions of small business owners will be in uncharted waters this tax season as they try to determine if they qualify for a deduction that could exempt one-fifth of their income from taxes

12/22/2018

Accounting Today summary of the Tax Cuts and Jobs Act. There are quite a few tax changes for the 2018 and 2019 tax season.
Business owners need to be aware that the entertainment deduction has been eliminated. Business meals are still qualified at 50% of total.
A 20% deduction has been added for qualified income of pass-through businesses. More to come on this deductions since it has specific qualifications and exclusions.
On the personal side, "The increase in the standard deduction likely means that many more taxpayers will be better off with the standard deduction in 2018." as opposed to itemizing. Mortgage interest is still deductible on mortgage and home equity interest. However, a new requirement has been added that home equity interest deduction must be for home improvements and verifiable by receipts.
Medical expense deduction has been lowered, charitable contribution deduction and child tax credit increase.
The list goes on and on....

Major tax reform changes that practitioners and taxpayers should keep an eye out for during filing season.

12/19/2018

12/19/2018

If you are starting your own business it is vital that you
Start Smart!

S> Select a qualified and certified accountant or bookkeeper right away.
M>Make a software decision. There is a QuickBooks software programs for every business level. If you work with a QuickBooks ProAdvisor there could be options for discounts.
A>Automatically download business checking and credit card accounts to software. Set up separate banking and credit card accounts for your business-No matter how small your business.
R>Reconcile your accounts monthly. This includes a review of income and expense accounts to make sure you are entering transactions to the correct accounts consistently. Banking, loan, and credit card accounts should match bank statements.
T>Talk to your accountant or bookkeeper on a regular basis. It is worth the investment to have a monthly or quarterly review to make sure your financials stay in order.