Employee outings and parties are commonly used to build a positive company culture and reduce employee turnover rates. They’re also opportunities for the boss to get a break from the daily grind, and for a CPA to claim additional deductions for the business. The tax savings for employee outings has indeed survived the Tax Cuts…
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TCJA Tax Reform: Did It Affect Employee Recreation and Parties?
Partnership QBI: Calculating and Improving It
For the Section 199A 20% tax deduction, profit distributions from partnerships are considered to be qualified business income (QBI). General partners are taxed based on these profit distributions, as well as guaranteed payments. Although the tax code is quite complicated in this area, it is possible to increase one’s QBI by increasing the profit distributions,…
Can You Deduct Your Home Office?
Lots of Americans work from a home office at least part of the time. It’s a convenient way to run a business, in part because it eliminates the morning commute. It can also offer tax advantages if you can claim the home office as a business deduction. It’s often thought that it’s only possible to…
When Can You Shred Your Personal Tax Documents?
Springtime isn’t just tax time—for many people, it’s also time to do spring cleaning. If you’re looking to clean out your files and get a fresh start, you may be wondering if it’s OK to shred your old tax documents. How long do you have to hold on to your past tax returns and your…
IRS Creates a New “Safe Harbor” for Section 199A Rental Properties
Under the new tax reform, Section 199A has been established to provide qualifying individual taxpayers and pass-through entities with a tax deduction of up to 20 percent of qualified business income (QBI). Section 199A also creates a “safe harbor” for owners of rental properties. If the filer qualifies for the safe harbor, the filer’s rental…
IRS Issues Final Section 199A Regulations and Defines QBI
The new IRS tax code Section 199A may affect you if you own a pass-through trade or business, including a proprietorship, partnership, or S corporation. It implements the new qualified business income (QBI) deduction, which may enable you to deduct up to 20 percent. QBI and Eligibility Essentially, qualified business income is taxable net income….
How to Report Prepaid Rent to the IRS
As a rule, it’s a good idea to avoid causing your landlord any potential tax problems. If you decided to prepay your business’ rent for 2019 to get a tax deduction for 2018, it’s important to report that correctly on your IRS Form 1099-MISC so that you don’t inadvertently cause a headache for your landlord….
Welcome Riana Linsky to the Royce CPA Firm!
Building a strong team is an essential aspect of providing reliable accounting services to our clients. That is why we are so happy to welcome our newest team member: Riana Linsky! Riana earned a Bachelor of Arts in Accounting from the University of Oregon. During her time in Oregon, Riana was a past treasurer of…
IRS Announces It Will Waive Tax Penalties for People Who Under-Withheld for 2018
When the Tax Cuts and Jobs Act of 2017 passed, it made a number of changes to the current tax laws. As many taxpayers discovered, this included changes to the current withholding tables for federal income tax, As a result, many people found that they had under-withheld for their taxes this past year. If you…
What You Need to Know about Section 199A
One of the most notable tax deductions introduced by the Tax Cuts and Jobs Act of 2017 is the 20 percent deduction included in Section 199A. Although the IRS has already released its official regulations, the complexity of the tax deduction means that many people are still confused about what it means. Here are the…
A Look at Qualified Opportunity Funds
One of the tax planning strategies introduced by the Tax Cuts and Jobs Act of 2017 is qualified opportunity funds. By using these funds, you can defer any capital gains from the current year and then make the capital gains on your new investment tax-free. In order to do this, it’s important to understand how…
How the Recent Tax Changes Affect the Kiddie Tax
If your children have any unearned income, then your family may be affected by the so-called “kiddie tax.” How does the Tax Cuts and Jobs Act of 2017 affect you and your children? As you’ll see, tax planning can help you ensure that the impact on your family is minimal. First, it’s important to understand…
Deducting Your Business Vehicles
When the end of the year rolls around, it’s time to start looking at your inventory—including your current vehicles. If any of your cars, vans, trucks, or SUVs could be claimed for a tax deduction, now is the time to find out! Here’s what you need to know about how to do this. As a…
Crystal Royce Honored at 2018 Executive Excellence Awards
It’s always nice to be recognized for your hard work. That’s why Tucson Local Media and Inside Tucson Business have created the Executive Excellence Awards. The team here at the Royce CPA Firm recently attended the 2018 Executive Excellence Awards, and we had a wonderful time! This year’s Executive Excellence Awards took place at the…
A Look at Family Tax Deduction Strategies
How does having a family affect your end-of-the-year tax calculations? The answer is: It depends! Whether you’re married or divorced, have kids or are childless, or are supporting any of your relatives, here are some tax strategies to keep in mind for the coming year. If your children work for you, treat them as employees….
Section 199A Deduction Strategies to Keep in Mind
Is it time to start thinking about your Section 199A deduction? If the end of the year is approaching, the answer is yes—that’s the best way to ensure that you’re able to claim a deduction at all! If you have income that is $157,000 or more, then it’s possible to reduce or even eliminate your…
What You Need to Know About Medical and Retirement Deductions
As the end of the year gets closer, it’s time to start seriously thinking about your taxes—and that means it’s also time to think about your medical plan and your retirement account. A little preparation now can pay off in the long run! Here are some important steps you can take that will help you…
Planning Your General Business Deductions for the End of the Year
The end of the year means it’s time to make sure that your financial affairs are in good order—and that means planning your general business deductions. Fortunately, this is easier than you might imagine! Here are some smart strategies that will help you reduce your tax obligation. Pay next year’s expenses in advance. If you…
Stock Portfolio Tax Strategies for the End of 2018
Are you planning your year-end stock portfolio? If not, there’s a very good reason you might want to do so—it can end up paying off! As long as you know how to handle your stock portfolio wisely, you can come up with a smart year-end tax strategy. Your goals are to steer clear of the…
The Royce CPA Firm at QB Connect 2018
We headed to San Jose earlier this month to attend QB Connect and we had an incredible time! Our team enjoyed hearing featured speakers like Mindy Kaling and Alex Rodriguez share their knowledge, and we had a great time exploring, learning, and networking. You can read about this year’s conference and get a snapshot of…