Does your company need to upgrade or add any equipment, vehicles, leasehold improvements, or other fixed assets? If so, you might be evaluating whether it makes sense to purchase or lease these items. The One Big Beautiful Bill Act (OBBBA) enhances first-year depreciation tax breaks, creating incentives for businesses to buy new and used assets.
C corporation owners often need to take cash out of the business to pay personal expenses or to shield excess cash from creditors. Paying dividends is one way to withdraw cash from the business, but it generally has some significant downsides. Fortunately, additional options may be available. Here’s what you need to know. Problems with
Many businesses maintain life insurance policies on their owners or employees for estate planning, buyouts, and various other business purposes. To receive the maximum tax benefits from business-owned life insurance, though, you need to understand the IRS rules and requirements. Basic Rules Business-owned life insurance generally refers to a life insurance policy that 1) is
Real estate can be an attractive long-term business investment. For tax reasons, you’re generally well-advised not to hold real property in a corporation. Here’s why limited liability companies (LLCs) and revocable trusts are usually better alternatives. Double Taxation Threat Holding depreciable real property or land in a C corporation is generally a bad idea from a
Is it possible to have too much of a good thing? The IRS thinks so, at least in the context of compensation paid to business owners. If an owner’s compensation is deemed excessive, the IRS may dispute deductions for wages that are unreasonable under the circumstances. A recent U.S. Tax Court case shows that “reasonable
For some time now, the media has highlighted the so-called “Great Resignation,” where legions of people have left their former jobs. If you’re among those who’ve resigned or you’re thinking about quitting, you may be considering a shift to self-employment. Before making the leap, though, you need to consider several factors that could be pros
While preparing your succession or estate plan, it can be helpful to value your family business both internally and externally.
