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Accounting for Prepaid Rent

Tue, Nov 5th 2019
Dealing with rent that is collected before it's due (aka "prepaid rent") is a problem every commercial property owner should be so lucky to have. But collecting prepaid rent raises some tax questions about when to report the money on your tax return. Prepaid rent is defined as rent paid before the rental period it relates to. Although rent usually is paid in advance — mostly on the first of the month to come — sometimes tenants pay several months before they plan to use the space. For instance... Read More »

Understanding Sales Tax in the Post-Wayfair World

Mon, Oct 21st 2019
In June 2018, the U.S. Supreme Court decided South Dakota v. Wayfair. Since then, businesses that operate in two or more of the nation’s 10,000-plus tax jurisdictions have been struggling to understand what they need to do to comply with the new definition of economic nexus. Wayfair affects all businesses, from strictly online sellers to manufacturers and wholesalers to brick-and-mortar retailers. The Court’s ruling was vastly different from its 1992 ruling in Quill Corp. v. North Dakota, which... Read More »

Use an ESOP to Transfer Ownership of Your Business

Mon, Oct 14th 2019
According to data from the Census Bureau’s 2016 Survey of Entrepreneurs (the latest available survey), there were 5.6 million employer firms in the United States, and 99.7% of those businesses employed 500 people or fewer. Guidant Financial and LendingClub's Report on the State of Small Business reported that 57% of small business owners are age 50 or older. Develop a Plan As owners of these businesses begin to think about retiring, they need to develop a succession plan. Although many will... Read More »

Focus on Forecasting: Keeping Your Business on Track

Mon, Oct 7th 2019
Budget forecasting is an essential part of good financial management, yet many companies rely on their once-a-year projections throughout the year. Although that strategy may have worked in the past, it’s no longer effective. Things are moving too fast: Technology, government regulations and artificial intelligence are only some of the disruptors businesses are subject to on a regular basis. Ongoing Monitoring Today, good financial health relies on ongoing monitoring of key business metrics and... Read More »

IRS Publishes Final and Proposed Regs on 100% Depreciation

Tue, Oct 1st 2019
The IRS has issued final regulations in September to finalize the proposed regulations issued in August 2018, which implement several provisions included in the Tax Cuts and Jobs Act (TCJA). The proposed regulations contain new provisions not addressed previously. According to the IRS: The 100% additional first year depreciation deduction generally applies to depreciable business assets with a recovery period of 20 years or less and certain other property. Machinery, equipment, computers,... Read More »