Rent Paid to Related Parties

Do you own or rent the building you are currently operating out of?  If so, there may be planning strategies small business owners can implement to protect their assets or plan for retirement.  A couple strategies discussed below are:

1) Creating and maintaining a holding company for the land and building, separate from the operating business.
2) Renting property to a related party.

Charitable Contribution Reminders

Have you made, or are you getting ready to make, contributions to a charitable organization this year?  Keep in mind, the IRS does allow you to deduction your donations for tax purposes.  However, it is important to remember there are several substantiation requirements that must be met for contributions to be deductible.  These requirements include:

a. Obtaining a contemporaneous written acknowledgement from the charitable organization for cash or property donations of $250 or more.

Retirement Plan Dollar Limits

As 2014 comes to a close, you may be thinking about year-end planning for the upcoming tax filing season.  Or maybe you are looking ahead to 2015.  One area that may provide a benefit for your current and future tax situations is contributing to a retirement plan.

Net Investment Income Tax Planning Points

The Net Investment Income (NII) Tax became effective January 1, 2013.  It is a surtax on certain unearned income of taxpayers and is also known as the “unearned income Medicare contribution tax.”  Interestingly, though, the revenues collected from this tax go into the Federal Government’s general fund not the Medicare fund.

Tangible Property Regulations Update

On September 23, 2013, the IRS and Treasury Department released final regulations that affect the treatment of materials and supplies, capitalization of amounts paid to acquire or produce tangible property, and the capitalization and deduction of expenditures relating to the repair or improvement of tangible property.  As previously noted, these new regulations will impact virtually all taxpayers regardless of your industry.  As we get closer to the tax filing season, it is important to be aware of some changes you should look for on your 2014 tax returns.


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