50% Deduction for Business Meals

The 2017 Tax Cuts and Jobs Act (TCJA) included a change to the meals and entertainment deduction and disallowed businesses to take the 50% for entertainment, amusement or recreation expenses.  Business are still allowed to take a 50% deduction on business meals though.   What qualifies as a business meal? In order to qualify as […]

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Ouch! Watch Out for the “Kiddie Tax”

I have always taken a proactive approach when it came to planning for my financial future. After recently passing the one-year mark of parenthood, and seeing my financial plan evolve, I have begun to dive deep into the impacts of what my son’s tax situation might look like in the years to come as well. […]

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Starting a Business? How You Should Treat Expenses on Your Tax Returns.

Have you recently started a new business? Or are you contemplating starting one? Launching a new business is a hectic, exciting time. And as you know, before you even open the doors, you generally have to spend a lot of money. You may have to train workers and pay for rent, utilities, marketing and more. […]

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Still Working After Age 70 ½? You Might Not Have to Begin 401(k) Withdrawals

If you participate in a qualified retirement plan, such as a 401(k), you must generally begin taking required withdrawals from the plan no later than April 1 of the year after which you turn age 70½. However, there’s an exception that applies to certain plan participants who are still working for the entire year in […]

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The 2018 Gift Tax Return Deadline is Almost Here

Did you make large gifts to your children, grandchildren or other heirs last year? If so, it’s important to determine whether you’re required to file a 2018 gift tax return — or whether filing one would be beneficial even if it isn’t required. Filing requirements Generally, you must file a gift tax return for 2018 […]

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Abbott Pratt Tax Talks – Spotlighting the Retirement Plan Credit

Who doesn’t love tax credits?! They are a dollar for dollar reduction of your tax liability. The IRS has a specific credit for qualified businesses that has added a SEP, SIMPLE or qualified retirement plan. If qualified, your business may be eligible for a credit up to 50% of the costs, with a maximum credit […]

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Abbott Pratt Tax Talks: Health Insurance for S-Corp Owners

What a great time of the year. The holidays are upon us, and tax season is right around the corner. Since there is still time to make any reporting changes needed before year end, those who are 2% or greater shareholders in an S- Corporation should be sure not to miss this item. As most […]

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The Associate Buy-in: 25%, 24%, 51% Method

Having an associate buy into a company is often one of the most rewarding moments of the selling owner’s career. The Associate buy-in can take many forms, but one method we have advised and highly recommend is a staggered purchase of the following: Initial buy-in of 25% ownership 2nd buy-in at a later, predetermined date […]

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Take Advantage of the New 20% Pass Through

The new 20% pass through deduc- tion can be a huge tax savings for many small businesses and their families. Get the conversation going now and strategize ways to take full advantage of this deduction! Our Pass Through Deduction Chart will help you focus your unique needs. [custom-button link=”https://abbottpratt.com/wp-content/uploads/2018/09/Abbott-Pratt-Blog-Mock-1.pdf”]Download Pass Through Deduction Chart[/custom-button] […]

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