When you sell real estate, you generally have to pay tax on the gain at the time of sale. Section 1031 or a “Like-kind exchange” provides an exception and allows investors in real estate to postpone paying taxes on the gain if the proceeds are reinvested in a similar property as part of a qualifying like-kind exchange. Simply put, you are investing in your future with tax deferred income.
We are excited to announce that Melanie Abigania has been promoted to Shareholder, one of 12 fall promotions. Melanie started at Sweeney Conrad in January of 2005, and has spent the past 14 years specializing in tax compliance, consulting, and planning for high net worth individuals, trusts, and estates. She is passionate about advising her clients, assisting them on small business issues, income tax planning, and estate and gift tax planning, and helping them figure out complicated tax lingo. Her clients operate in industries including real estate development, professional services, wholesale and manufacturing.
This week, the Financial Accounting Standards Board (FASB) announced a delay in the effective dates for standards on accounting for leases, credit losses, and hedging applicable to private companies and certain other entities.
Every fall, executives and managers undertake a familiar exercise—creating a budget for the coming year. Many dread the process, which can be long and frustrating. But a good budget provides several benefits for business owners:
The Tax Cuts and Jobs Act of 2017 brought about many tax changes, one of which is what and how much of your meals and entertainment expenses are deductible. At a high level, beginning in 2018, entertainment expenses are no longer deductible and the majority of meal expenses are now deductible at 50%.
We first wrote about these changes in this blog post a year ago- and the following checklist provides further clarification on the new rules.
|Category||Previous Deduction||Deduction as of 2018|
|Entertainment: tickets for sporting events, theater, etc.; club expenses; golf course fees; hunting or fishing trips; etc.||50%||0%|
|Meals with clients where business is discussed||50%||50%|
|Meals with clients where business is not discussed (this is classified as entertainment)||50%||0%|
|Meals with employees where business is discussed||50%||50%|
|Meals with employees where business is not discussed (this is classified as entertainment)||50%||0%|
|Food and snacks provided for employees (not considered part of compensation)||100%||50%|
|Company picnics and parties||100%||100%|
|Meals for employees while they are on business travel||50%||50%|
|Meals and entertainment included in an employee's compensation package||100%||100%|
Do you have questions on how to classify your meals and entertainment expenses? Contact Sweeney Conrad’s Senior Tax Associate Darren Reed at firstname.lastname@example.org.
When is the last time you and your governance group took a fresh look at your employee benefit plan? If it was more than a year ago—or worse, if you can’t really remember—then now is a good time to re-evaluate your plan design in light of changes in your employee base and broad shifts in workforce dynamics.