Update from Adam T. Cary, CPA PC

We are in the throes of tax season, and it occurred to me that I never let you know that I recently hired a tax manager to assist with serving clients. And, so, you may likely get a phone call or an email from “Chris Hall” and not know who he is or why he’s important.

Chris Hall and I worked together a few years ago when he was fresh-out graduate of ASU with his Masters in Taxation. He became a CPA and went on from that firm to work out-of-state with a Big 4 firm in a highly-specialized, highly technical tax department. The cold in the Northeast got old and he and his wife came back to AZ. Chris then worked for a mid-sized local CPA firm, and has now accepted the challenge of working with our boutique tax and tax planning firm.

I am still very much involved in the day-to-day operations, am reviewing and overseeing the tax work that we are doing.; With Chris onboard, I’ll be able to be more proactive with tax planning and helping clients pay less tax and have more confidence in their financial decisions. Please let us know if you have any questions.

When do LLC members pay self-employment taxes 

Source: adamcarycpa.com

Limited liability company (LLC) members commonly claim that their distributive shares of LLC income — after deducting compensation for services in the form of guaranteed payments — aren’t subject to self-employment taxes (SE). But the IRS has been cracking down on LLC members it claims have underreported SE income, with some success in court. Self-Employment taxes background Self-employment income is subject to a 12.4% Social Security tax (up to the wage base) and a 2.9% Medicare tax. [ 400 more words ]


Switch to a C Corporation?

Source: adamcarycpa.com

The flat 21% federal income tax rate for C corporations under the Tax Cuts and Jobs Act (TCJA) has been great news for these entities and their owners. But some fundamental tax truths for C corporations largely remain the same: C corporations are subject to double taxation.  Double taxation occurs when corporate income is taxed […]
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Lease or Purchase Equipment?

Source: adamcarycpa.com

Recent changes to federal tax law and accounting rules could affect whether you decide to lease or purchase equipment or other fixed assets. Although there’s no universal “right” choice, many businesses that formerly leased assets are now deciding to buy them. Pros and cons of leasing From a cash flow perspective, leasing can be more attractive than buying. And leasing does provide some tax benefits: Lease payments generally are tax deductible as “ordinary and necessary” business expenses. [ 395 more words ]


Home Office Deduction

Source: adamcarycpa.com

If you run your business from your home or perform certain functions at home that are related to your business, you might be able to claim a home office deduction against your business income on your 2018 income tax return. Thanks to a tax law change back in 2013, there are now two methods for […]
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Qualifying A Rental Real Estate Enterprise As A “Business” For The 20% 199A QBI Pass-Through Deduction

Source: feeds.kitces.com

In a classic case of “the gift that keeps on giving,” the new IRC Section 199A included in the sweeping changes to the Internal Revenue Code introduced in the Tax Cuts and Jobs Act enacted by Congress in December 2017 has the potential to help certain business owners significantly reduce their annual tax bill withRead More…


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