Business Tax Archives - SSB Certified Public Accountants

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It’s advantageous for short-term investors to qualify as traders, rather than investors, for federal income tax purposes. Unfortunately, there’s no bright-line distinction between trader and investor status. Here’s an overview of the IRS and U.S. Tax Court guidance to help determine if you qualify as a tax-favored securities trader. Review the IRS Guidance According to… Continue reading →

Many privately held businesses have incurred losses during the COVID-19 pandemic. Unfortunately, the federal income tax passive activity loss (PAL) rules can limit an owner’s ability to currently deduct tax losses thrown off by passive activities. Here’s an overview of how the PAL rules apply to members (owners) of limited liability companies (LLCs). Focus on LLCs… Continue reading →

Have you ever completed a job only to realize that the cost of performing the work equals or exceeds the revenue that the project brought in? This phenomenon is called “profit fade” and, if it occurs repeatedly, it can prove fatal to your business. Although profit fade could threaten any construction business, it’s a particular concern… Continue reading →

Preparing for a surge in demand for your business’ products and services doesn’t mean you have to go out on a financial limb. But some contingency planning may be in order. The Federal Reserve Bank of Richmond is a helpful source for data and analysis on where the national economy is heading. It provides a peek… Continue reading →

Weather emergencies take many forms, and depending on your location, you’re likely more vulnerable to some forms than others. But the following data about the business impact of natural disasters from the Federal Emergency Management Agency (FEMA) is a wake-up call: 40% of small businesses won’t reopen in the immediate aftermath of a natural disaster.… Continue reading →

Virtual currencies, also known as cryptocurrencies, have gone mainstream. For example, you can use Bitcoin to buy a Tesla, or you can use a Bitcoin wallet on your smartphone to make everyday purchases. But beware: Using virtual currency has federal income tax implications that may surprise you. With increasing market acceptance and the skyrocketing price… Continue reading →

The U.S. Department of Labor (DOL) has recently taken action on the criteria for determining independent contractor status, rescinding regulations that were enacted as recently as two weeks prior to President Biden’s inauguration in the last days of the Trump administration. That means what’s old is new—the regulations in force now are left over from… Continue reading →

The pandemic has adversely affected many sectors of the U.S. economy, causing widespread job losses. At the start of the national emergency, Congress created a novel tax break—the Employee Retention Credit (ERC)—to entice employers to retain employees. But three different laws have created and changed the credit, which has led to significant confusion. Here’s a… Continue reading →

Many people started businesses in 2020, and many others plan to launch new ventures in 2021. Entrepreneurs often have questions about whether business expenses for a start-up can be deducted in the year they’re incurred or paid—or whether they must be capitalized and deducted over time. Here’s some guidance. Basic Tax Rules Internal Revenue Code… Continue reading →

The American Rescue Plan Act (ARPA) was signed into law on March 12, 2021. The new law will provide roughly $1.9 trillion in much needed financial relief to individuals, businesses, not-for-profit organizations and state and local governments during the pandemic. Here are some of the key ARPA provisions that will affect federal income taxes for… Continue reading →