Yearly Archives 2017

Unified Framework for Tax Reform

Republican lawmakers released on Wednesday a “unified framework” for tax reform designed to cut tax rates, simplify the Internal Revenue Code, and provide a more competitive environment for business. The key changes are as follows: Individuals: Current tax rates: Seven brackets from 10% to 39.6%. Proposed tax rates: Three brackets at 12%, 25% and 35%. Current standard deduction: $6,350 individuals and $12,700 married filing joint. Proposed standard deduction: $12,000 individuals and $24,000 married filing joint. Elimination of personal exemptions, worth $4,050 per person. Repeal of the alternative minimum tax. Repeal of the estate and generation-skipping transfer tax. Eliminate most itemized
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Categories: Industry News and Newsletter and Updates.

How to Protect Yourself From the Equifax Data Breach

If you have not already done so, you should immediately check your potential impact from the massive cyber security incident at Equifax which may have affected 143 million people. Follow the recommended steps from the Federal Trade Commission located here to see your potential impact. Your security is important to us, please email us at info@cpa-wfy.com or contact us here if you have any additional questions or concerns.  
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Categories: Industry News and Newsletter and Updates.

What to Know About ‘Power of Attorney’

A general power of attorney gives broad powers to a person or organization, known as an agent or attorney in fact, to act on your behalf. What powers? Handling financial and business transactions. Buying life insurance. Settling claims. Operating business interests. Making gifts. Employing professional help. These things make a general POA an effective tool, especially if you’ll be out of the country and need someone to handle certain matters, and obviously if you’re physically or mentally incapable of managing your affairs. Powers of attorney are generally included in estate plans to make sure someone is handling financial matters. But
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Categories: Newsletter and Updates.

Multistate Sales Tax Amnesty Program for Online Retailers

The Multistate Tax Commission announced that it is working with 13 states to implement a sales tax amnesty program aimed at getting online retailers to register and file sales tax returns.  The main benefit of the amnesty program is that sellers will not be required to report prior period sales, nor be required to pay penalties or interest on any back taxes owed.  As of today, participating states include: Alabama, Arkansas, Colorado, Connecticut, Kansas, Kentucky, Louisiana, Nebraska, New Jersey, Oklahoma, Texas, Utah, and Vermont.  Eight additional states are considering participation but have not committed, and it is not clear whether
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Categories: Newsletter and Updates.

Wondering About a 1031 Exchange

Perhaps you’ve heard of 1031 exchanges or like-kind exchanges, but you’re unsure of the benefits or whether you even qualify. The Internal Revenue Code 1031 is available to those who hold a property that qualifies as productive use in business or investments. If you have a piece of investment property, a 1031 exchange allows you to swap it for a similar property. What is a 1031 exchange? This type of exchange happens when an investor trades his or her real property for a similar or “like-kind” property. Investment properties such as shopping malls, residential buildings, stadiums and more can all
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Categories: Industry News and Newsletter and Updates.

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WFY wants to keep our subscribers up to date on the latest news from tax reform, ESOPs, IRS updates, WFY updates, and more. You can stay inform with WFY news by subscribing here to our newsletter or following us on Facebook or Linkedin. Click on the links below to follow us on one or both of the following sites: Facebook: https://www.cpa-wfy.com/www.facebook.com/WFYCPA/ LinkedIn: https://www.cpa-wfy.com/www.linkedin.com/company/wright-ford-young-&-co.
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Categories: Newsletter and Updates.

Understanding the Components of a Buy-Sell Agreement

You want to protect your company against disruptive, harmful, and nonproductive owners, which may include divorced spouses, competitors, and disgruntled former employees. And you’re also thinking that your estate needs protection. You decide to enter into a buy-sell agreement while the interests of the parties—your partners and yourself—are aligned or at least not sufficiently misaligned that it would be impossible to discuss the business and valuation aspects of these agreements. You know that when a trigger event occurs, the interests of the parties—buyers and sellers—may diverge and agreement over pricing and terms can become difficult or impossible to achieve. The
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Categories: Newsletter and Updates.

Wondering if You’re Eligible for R&D Credits

If you’re a business owner who wants to eliminate the uncertainty in developing a new product or improving an existing one, you’re probably engaging in research and development. Unfortunately for them, many business owners don’t realize that in some cases, R&D expenditures may be eligible for a tax deduction. Or perhaps they think that some expenses are deductible when they’re not. The IRS notes that “R&D expenditures generally include all expenditures incident to the development or improvement of a product.” The term “product” has a wide range in this context and can include: Formula Invention Patent Pilot Model Process Technique
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Categories: Newsletter and Updates.

Tax Calendar for the Rest of 2017

There are several dates throughout the 2017 tax calendar you need to remember for your own personal taxes and possibly for your business taxes. September 15 Individuals: If you are not paying your 2017 income tax through withholding (or you will not pay enough tax during the year that way), pay the third installment of your 2017 estimated tax. Use Form 1040-ES (Estimated Tax for Individuals). For more information, see IRS Publication 505 (Tax Withholding and Estimated Tax). Partnerships: If a six-month tax extension was requested/obtained, file a 2016 tax return (Form 1065), and pay any tax due. Provide shareholders with a
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Categories: Newsletter and Updates.

The Decision to Buy or Lease for Business Owners

After paying rent for several years, many business owners are not thrilled about helping their landlord build equity in the building and ultimately they regret not purchasing the property from the outset. The principals at Beckner & Associates, a real estate firm in Lenexa, Kansas believe most businesses should own their own property.  The hard questions are when and how.  This is why it’s critical for small-business owners to consider the advantages of owning their property as well as understand the issues accompanying purchase. Advantages Tax deductions such as mortgage interest, property taxes and depreciation can help a small-business reduce the
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Categories: Newsletter and Updates.