Tag: Public Accountant

Back to school? Check this tax credit

If you or a member of your family is off to college this fall, you may be eligible for the American Opportunity Tax Credit.  Eligible students may take this credit for the first four years of higher education.  The credit can be up to $2500 annually.  Expenses that qualify for the credit include tuition, fees, and related expenses. Forty percent…

Read more

Business Tip: Don’t sell property; exchange it

A tax-deferred exchange is a tax planning technique which should be considered by any taxpayer that is relocating or disposing of property.  Often referred to as a “tax-free exchange,” the tax-deferred exchange allows you to exchange certain business or investment property for other “like-kind” business or investment property and pay no income taxes currently.  Your tax liability is deferred until…

Read more

Accurate inventory numbers are crucial for your business

For many companies, inventory is a significant dollar amount on the company’s financial statements.  So it’s crucial that recorded inventory balances reflect actual values.  When such accounts aren’t properly stated, the cost of goods sold and current ratios – numbers that often matter to decision makers – may be skewed.  If banks discover that your company’s inventory accounts are overstated,…

Read more

IRS launches new “misclassification initiative”

How you classify your workers – as “independent contractors” or “employees” – matters a great deal to the IRS.  The IRS is aware that employers prefer to treat workers as independent contractors to avoid paying fringe benefits and payroll taxes.  The IRS estimates that 80% of workers who are classified as independent contractors are actually employees.  About 100 new auditors…

Read more

Public safety heroes law passed

A new law, the “Don’t Tax Our Fallen Public Safety Heroes Act,” was signed on May 22, 2015, to clarify the tax treatment of federal and state benefits for public safety officers killed or injured in the line of duty.  Under the law, such benefits will not be subject to federal income tax.

Read more

Business survey identifies taxes as biggest burden

In a survey of small businesses conducted by the National Small Business Association, 59% of respondents said taxes were more of an administrative burden than a financial one.  Most businesses put payroll taxes at the top of the list of taxes with the greatest administrative burden.  Payroll taxes also outranked other taxes, such as income, property, and sales taxes, as…

Read more

Check out the current issue of South Jersey Biz magazine featuring Business Accounting Systems, P.C.

Business Forecast sjbiz jan2015 PDf South Jersey Biz January 2015 Our Vice President, L. Scott Elwell, MST, EA is currently featured in the January, 2015 edition of South Jersey Biz Magazine.  The article features predictions from local industry leaders on what 2015 has in store for the South Jersey business world.  Here is a copy of the article as well as…

Read more

Not all “income” is taxable

There are several sources of revenue that are not subject to income tax. Here are the most common sources of money that are not taxed on your federal income tax return: Borrowed money such as from banks or personal loans. Money received as a gift or inheritance from family or friends. Money paid on your behalf directly to a school…

Read more

Year-End Tax Strategies for Businesses

YEAR-END TAX STRATEGIES FOR BUSINESSES Gift shares of stock to family members who are in a low tax bracket before declaring a dividend, as part of a larger plan to shift ownership of the business to younger family members. The owners of pass-through entities, such as S corporations and partnerships, have the income taxed on their personal tax returns.  The…

Read more

Welcome to our Business Accounting Systems, PC blog!

We’re excited to announce the official launch of our Business Accounting Systems, PC blog. We’ll be posting helpful news from the financial industry, updates from our practice, and more about the latest in keeping your personal and business finances in the best shape possible. We built our practice on the notion that we’re there for our clients when they need us…

Read more