by Blair Butters | Feb 19, 2018 | Uncategorized
There will always be a crowd of taxpayers who wait until the last minute in April to file federal income tax returns. While there are benefits such as receiving your tax refunds faster, there are other helpful perks to submitting your taxes as soon as possible including the following: Preventing tax return identity theft Extra time to pay your taxes Obtaining vital information for financial planning Preventing tax return identity theft When filing early, this may not eliminate the possibility of identity theft but it will protect your refund from falling into the wrong hands. Most cases of tax-related identity theft occur early in the tax season. When an identity thief files a return using your Social Security before you get the chance, the IRS will automatically deny access to your tax return because they assume that you have already filed it. It is important to highlight that once a criminal has access to your Social Security number, that is all they need to file in your name. In this case, you will have to file a paper return and your refund will be delayed several months. Extra time to pay your taxes As a taxpayer, you may be facing a tax bill rather than a refund. Many assume that by putting of filing as long as possible will help you save money in time for the last minute mid-April. If you file your taxes early, you will be at an advantage of knowing exactly how much you owe the IRS, without having to pay in full until April’s filing deadline. Knowing your amount due earlier will...
by Blair Butters | Dec 28, 2017 | Uncategorized
By now you have most likely heard that President Trump signed the Tax Cuts and Jobs Act on December 22, 2017. Most of the conversation regarding the new law has revolved around the changes to personal tax rates and deductions. You may have also heard about the corporate tax rate reduction for corporations and pass-through businesses. Like any other bill, there are other changes in the bill that have not garnered as much attention; however, some of these items will most likely affect your business taxes and indirectly your personal taxes. We have selected three provisions that might affect your business taxes. Like-Kind Exchange Treatment The new law allows “like-kind” exchange treatment only for real property transactions. Like-kind exchange treatment will not be applicable for transactions involving personal property, for example, equipment. A typical example of this type of transaction was to trade in one business vehicle for a new business vehicle. Under current law, no gain or loss is recognized from the transaction. Under the new law, you will have to recognize the gain/loss on the sale of the vehicle. If you are looking to implement a like-kind exchange for business-related real estate, you can do that provided you meet all of the criteria. Depreciation Related Deductions The act allows for greater opportunities for expensing fixed asset purchases, mainly related to equipment purchases; however, some real property improvements are also included. The act allows for 100% first-year expensing deduction for qualified property, which generally means brand new tools and equipment, however, some types of real property improvements also qualify. This is applicable to assets acquired after September 27, 2017,...
by Blair Butters | Sep 25, 2017 | Uncategorized
Autumn. The leaves are turning, the air is getting cooler, and pumpkin lattes are in every cafe in sight. The year is starting to wind down and you might be feeling behind on your small business tax preparation. As the end of year approaches, it’s important to get caught up with all of your finances so you can properly assess your financial situation while there is still time to make purchases before the end of the tax year if that’s what’s necessary. If you haven’t been preparing as you go, this is a great time to take an hour each week to catch up. You’ll be able to tally your expense reports or review receipts and modify records. You not only want to be prepared to submit your taxes but also capitalize on deductions. Now is the time to implement strategies that will ensure your small business is in a secure place for the upcoming tax season. End-of-Year Payroll Reviewing this year’s payroll may be easier to do before the end of the year than at the start of the new year. Overlapping end-of-year payroll with the new-year payroll could result in confusion. Ensure you are gathering the correct information for W-2 forms and taxable fringe benefits. If you plan to give your employees end-of-year bonuses, do so by year-end so that they are included in your employees’ income for that year. Quarter four (Q4) is also a great time to verify all of your benefits and employee payroll information is correct. It is important to detail out your payroll to avoid penalties for late, incorrect, or incomplete submissions....
by Blair Butters | Jul 11, 2017 | Uncategorized
The DMA Tax & Accounting team works with numbers everyday, but when our staff recently realized we are officially celebrating 10 years as DMA this month, it made us sit back and think about what it means to be able to serve our clients for that amount of time. DMA began more than 30 years ago as the former Goetz and Associates. The accounting firm had many long-time clients, and a stellar reputation in the community. Dale Miller, current majority owner of DMA, joined the firm, eventually purchased it, and a few years later renamed it. Blair Butters is a part owner, and took a similar path with DMA. Both Dale and Blair have years of CPA and tax preparation experience, but believe success in business is based on providing superior levels of customer service. DMA was awarded a “Best of Monona” in 2016 for standing behind those beliefs. “Running a business is as much about having a great supporting staff as it is about customers, “ Dale says. “Interacting with clients and seeing their businesses grow or change makes me excited about coming to work everyday.” “Great customers and great employees are most important to the success of a business. Treat both well, and you will have long-term loyalty from both,” Blair says. The Small Business Administration’s survey of business survival shows about 2/3 of new or renamed businesses survive the first 2 years, and about half, survive more than five. Given those statistics, DMA is thriving beyond its own expectations, which both Dale and Blair acknowledge were set by previous owner Fred Goetz. “When we took over the business,...
by Blair Butters | Jun 27, 2017 | Uncategorized
If you own or lead a business and you are planning to host a party or picnic for your employees this summer, you are probably simply hoping it will be a fun way to bring your staff together. But, you may also be able to take a large or full tax deduction for the expenses related to the gathering. Deductible Expenses Typically, your business is limited to deducting 50% of allowable meal and entertainment expenses. But some expenses, like those associated with your summer party or picnic, are 100% deductible. This includes meals, recreation, social activities, and entertainment at the summer or holiday party or picnic you are holding for your employees. But, to qualify for the 100% deduction, your entire staff has to be invited. They don’t have to attend, but all of your employees must be given the opportunity to come to the party or picnic. Here are a few other examples of expenses that may be fully written off: Food, water, and coffee provided at your business for employees Meals provided at your business to more than half of your employees as part of working extra hours, weekends, or holidays Food or beverages provided to the public for promotional purposes Tracking Expenses Ready to move forward with your summer party or picnic? There are a number of IRS requirements, including certain records you’ll need to keep to prove your expenses are 100% deductible. You must be able to prove: Amount of expense Time, date, and place of expense Purpose for expense Who benefited from expense (employees, public) You will find your company can reduce its tax...
by Blair Butters | May 4, 2017 | Uncategorized
Do you struggle to try and save money? If you are a business owner, pursuing financial goals should be a priority, but it can be difficult to stay on track. The good news? You don’t need to have a substantial income to get your savings underway. Here are 5 simple tips to support your journey as you work to grow your savings, and boost your dreams Determine your goals: Goal setting is an essential habit if you want to win in the saving money game. Writing down your financial goals and keeping the list somewhere you can see it, such as on your refrigerator, will get you to stick with it, versus not having any goals at all. Make sure your goals are S.M.A.R.T.: specific, measurable, attainable, realistic, and time oriented. Figure out how long it might take you to save for each goal with a tool like Bank of America’s savings goal calculator. Create small steps for each goal to make achieving it less scary and more manageable. And celebrate when you reach each milestone…you deserve it! Make a budget …And stick to it! You need to establish where you are — before you determine where you are headed. It’s not as scary or difficult as it may seem. And when you get control over what you are spending vs. saving, it will add freedom to your life and help you make the best choices to benefit your long-term goals. Saving money is not about depriving yourself, but rather empowering your efforts. Cut excess spending Do you carefully track your expenses? Each and every one, from your daily...
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