The CBD Blog

Find peer advice, partner insights, and industry updates – all here in the CBD blog, ‘At The Helm’! With contributions from our entire team, we blog about the things that interest you.

Create an Accountable Plan to Reimburse Employees for Business Expenses

For 2018 through 2025, employees can’t claim itemized deductions for unreimbursed business expenses they incur on behalf of their employers. Your company can minimize the adverse effects of this tax law change by setting up an “accountable plan” to reimburse employees tax-free. Here are the details, including the requirements, potential pitfalls and two other reimbursement alternatives to consider.

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Claiming the New Employer Tax Credit for Family and Medical Leave

Does your company offer paid family and medical leave? This perk can help attract and retain workers in today’s tight job market and a new tax credit can sweeten the deal. But this tax break is available for only two years, unless Congress extends it. Plus, it’s subject to numerous rules and restrictions. Here are some FAQs to help you decide whether it’s cost-effective for your company to offer a leave plan that’s eligible for the new credit.

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Employers: Consider Telemedicine and Make Sure Employees Use It

Telemedicine is the rapidly growing system for delivering health care services using telecommunications. It’s where medical diagnostics and communications technology intersect. With outcomes that benefit employees and employers, telemedicine holds the promise of improving health care efficiency and quality as well as lowering overall cost. Yet many employees who have access to telemedicine aren’t using it. Here’s how to help make it work for your organization.

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Tax Reform: Which Changes Are Temporary vs. Permanent?

The Tax Cuts and Jobs Act calls for many changes to the tax rules for individuals and businesses. It’s hard to keep track of what’s permanent and which changes are scheduled to expire at the end of 2025. Plus, Republican lawmakers in the House have introduced a bill that proposes to make permanent some provisions that are currently temporary. Here’s a scorecard to help you keep track of the details.

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Tax-Exempt Organizations: IRS Provides Guidance on New UBTI Rule

Many not-for-profit organizations conduct business activities that are unrelated to their tax-exempt function. To the extent that an organization earns income from these activities, it must pay the unrelated business income tax. Now, thanks to the Tax Cuts and Jobs Act, unrelated business taxable income (UBTI) must be calculated for each separate trade or business.

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Calculating W-2 Wages for Limitations on the QBI Deduction

Some parts of the Tax Cuts and Jobs Act simplify the tax code but others add complexity. When it comes to the new qualified business income (QBI) deduction for pass-through entities, the devil is in the details. Recently issued IRS proposed regulations help businesses understand how to calculate the QBI deduction. Here, we cover the limitations based on W-2 wages and the basis of qualified property.

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Gen Z May Change How You Manage Employees

Generation Z is beginning to infiltrate the workforce. Are you prepared? While distinctive generational characteristics are often exaggerated possibly even stereotyped an overview may help you anticipate what’s to come. Here’s a look at the attitudes and behaviors that some observers attribute to members of Gen Z. You might be surprised.

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When Is Service Business Income Eligible for the New QBI Deduction?

A new deduction of up to 20% of qualified business income (QBI) helps achieve tax-rate parity between C corporations and eligible pass-through business entities. However, some service businesses may be hit with a QBI deduction disallowance rule if their owners’ taxable income is above certain levels. Proposed IRS regulations clarify how the disallowance rule works.

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IRS Issues Proposed Guidance on Controversial SALT Limitation

The Tax Cuts and Jobs Act limits itemized deductions for state and local taxes (SALT). To bypass this limitation, some states have approved charitable contribution “workaround” legislation. Recently, the IRS issued proposed regulations that block these workarounds by generally allowing taxpayers to deduct contributions only after subtracting the value of any state tax credits. Here are the details.

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How “Aggregating” Businesses Can Boost Your QBI Deduction

High-income individuals with multiple business interests may be eligible to take advantage of aggregation rules that could increase their deductions for qualified business income (QBI). The IRS recently issued proposed regulations that explain how and when aggregating works for purposes of computing the QBI deduction and the deduction limitations based on W-2 wages and the basis of qualified property.

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IRS Issues Proposed Guidance on Complicated QBI Deduction Rules

How much do you know about computing the new qualified business income deduction or who qualifies for it? The IRS has published detailed guidance to help owners of sole proprietorships and pass-through entities understand how this deduction works. Here are some key definitions and limitations that will be critical for many business owners to understand as they plan for the rest of the 2018 tax year.

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What’s Next for State Tax Nexus?

Internet commerce has become increasingly common over the last 25 years. But until recently, the legal standard for establishing economic “nexus” for state tax purposes was based on a case from 1992. On June 21, the U.S. Supreme Court published its decision in Wayfair. This landmark case opens the door for states to impose sales and use tax on remote sellers.

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QBI Deduction Provides Tax Break to Pass-Through Entity Owners

Most U.S. businesses operate as pass-through entities, such as sole proprietorships, partnerships, LLCs and S corporations, that won’t benefit from the reduced federal income tax rate for C corporations. But a new tax deduction for qualified business income from pass-through entities might offer temporary relief. Here are the basics and some information about recently proposed IRS regulations.

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Tax Law Expands Accounting Method Options for Small Businesses

Accounting for taxes can be complicated. Fortunately, the federal tax law allows some simplified and more-flexible accounting alternatives for small businesses. And now, the Tax Cuts and Jobs Act allows more companies to qualify for the cash basis method and elect out of complex inventory and percentage-of-completion accounting rules. Is your business eligible to take advantage of these changes?

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Effective Retirement Planning Includes Contingencies

When planning for retirement, it pays to be conservative. We’ve been hearing for years that Americans don’t save enough for their golden years. Recent research confirms that belief, indicating that many are living in a bit of a dream world with respect to how they will pay for their living expenses when they expect to retire. Here’s some food for thought.

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Many Taxpayers Will Pay No Tax on Long-Term Gains and Dividends

Under the Tax Cuts and Jobs Act, some individuals will still qualify for the 0% federal income tax rate on long-term capital gains and dividends. But, if your income is too high to benefit, the 0% rate still may be available to loved ones who earn less. Here’s what you need to know to take advantage of this tax-saving opportunity, along with details about a White House proposal to cut the capital gains tax.

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How Tax Reform Affects Tax Planning for C Corporations

From a reduced corporate tax rate to expanded depreciation breaks, the Tax Cuts and Jobs Act (TCJA) provides a host of favorable changes for C corporations, including personal service corporations. Here are some specific moves that can help reduce your corporation’s federal income tax bill for 2018, along with some traditional tax-planning priorities that still hold true after tax reform.

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Buying vs. Leasing Equipment: Which Is Right for Your Business?

Recent changes to federal tax law and accounting rules could affect whether you decide to lease or buy fixed assets. Here are the pros and cons of these options. Although there’s no universal “right” choice, many businesses that formerly leased assets are deciding to buy them, primarily to take advantage of expanded Section 179 and bonus depreciation deductions.

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Small Business Tax Strategy: Heavy Vehicle Plus a Home Office

Every small business owner wants lower taxes. Here’s an idea: If you drive a lot for business and work primarily from a home office, consider buying a “heavy” SUV, pickup or van to take advantage of the generous first-year bonus depreciation deduction under the Tax Cuts and Jobs Act (TCJA). This article explains how this strategy works and how much you could potentially write off.

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New Law, New Limit on Deductions for Business Interest Expense

Did you know that the Tax Cuts and Jobs Act (TCJA) imposes a new limitation on business interest expense deductions? Fortunately, many businesses won’t be affected by the change, based on their size or the nature of their operations. Here are the basics on how this unfavorable change works, along with a list of businesses that are exempt from the new limitation.

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