View Padgett President Roger Harris' congressional testimony on the impact of the Corporate Transparency Act and the BOI reporting requirements here.
Adding a Partner? Watch Out for Tax Traps!
May 6th, 2024 | Uncategorized
There are several financial and legal implications when adding a new partner to a partnership. Here’s an example to illustrate: You and your partners are planning to admit a new partner. The new partner will acquire a one-third interest in the partnership by making a cash contribution to the business. Assume that your basis in your partnership interests is sufficient so that the decrease in your portions of the partnership’s liabilities because of the new partner’s entry won’t reduce your basis to zero. More complex than it seems Although adding a new partner may appear to be simple, it’s important to plan the new person’s entry properly to avoid various tax problems. Here are two issues to consider: 1. If […]
Latest Posts
Luke Robison’s Spud Success with Padgett at His Side
Luke Robison, the owner of Luke Robison Farms, traces his roots in farming back four generations in the Klamath Basin. His journey into the world of agriculture began in 2010, when he seized the opportunity to grow potatoes for the Fresh Market. Despite hailing from a farming family, Luke didn’t inherit acres of land or a ready-made operation. Instead, armed with determination and his father’s initial support, he embarked on his own farming odyssey, renting land to sow his dreams. The early days were fraught with financial challenges. Market volatility in the Fresh Market potato industry dealt Luke a heavy blow, threatening to uproot his fledgling enterprise. But amidst the turmoil, a silver lining emerged. An opportunity arose to pivot […]
Read More >>5 Indicators Your Business Could Need a Strategic Pivot
When you encounter the word “pivot,” you may think of a politician changing course on a certain issue or perhaps a group of friends trying to move a couch down a steep flight of stairs. But businesses sometimes choose to pivot, too. Under a formal pivot strategy, a company consciously changes its strategic focus in a series of carefully considered and executed moves. Obviously, this is an endeavor that should never be undertaken lightly or suddenly. But there’s no harm in keeping it in mind and even exploring the feasibility of a pivot strategy under certain circumstances. 5 common situations For many businesses, five common situations often prompt a pivot: 1. Financial distress. When revenue streams dwindle and cash flow slows, it’s critical […]
Read More >>Are You Guilty of These 7 Payroll Mistakes?
If your company has been in business for a while, you may not pay much attention to your payroll system so long as it’s running smoothly. But don’t get too complacent. Major payroll errors can pop up unexpectedly — creating huge disruptions costing time and money to fix, and, perhaps worst of all, compromising the trust of your employees. For these reasons, businesses are well-advised to conduct payroll audits at least once annually to guard against the many risks inherent to payroll management. Here are seven such risks to be aware of: 1. Inaccurate recordkeeping. If you don’t keep detailed and accurate records, it will probably come back to haunt you. For example, the Fair Labor Standards Act (FLSA) requires businesses to […]
Read More >>Featured Articles
Understanding IRAs: your retirement savings guide
With the recent passing of the SECURE 2.0 Act of 2022, you may have questions about the different types of Individual Retirement Accounts (IRAs) available. How do you choose what retirement plan is right for you? IRAs are a powerful tool for retirement savings. They are savings plans that come with tax advantages to help taxpayers build a retirement fund. Each type of IRA has its own set of regulations and deadlines. Here’s a quick overview of the most common kinds: Traditional IRA: Contributions to a traditional IRA may be tax deductible and earnings grow tax-deferred until distribution, which means you won’t pay taxes on your traditional IRA funds until you make a withdrawal. The contribution limit for 2022 is […]
Breaking Down the SECURE Act 2.0
Roger and Annie discuss the changes in the SECURE 2.0 Act of 2022 and how this impacts small business owners with regards to offering retirement plans to their employees. They also talk about recent changes in IRS regulations that could prove …
Latest Tax, Accounting & Financial Tips
2024 Q2 tax calendar: Key deadlines to watch out for
Here are some of the key tax-related deadlines that apply to businesses and other employers during the second quarter of 2024. Keep in mind that this list isn’t all-inclusive, so there may be additional deadlines that apply to you. Contact us to make sure you’re meeting all applicable deadlines and to learn more about the filing requirements. April 15 If you’re a calendar-year corporation, file a 2023 income tax return (Form 1120) or file for an automatic six-month extension (Form 7004) and pay any tax due. For corporations, pay the first installment of 2024 estimated income taxes. Complete and retain Form 1120-W (worksheet) for your records. For individuals, file a 2023 income tax return (Form 1040 or Form 1040-SR) or […]
Bartering is a taxable transaction even if no cash is exchanged
Maximize the QBI deduction before it’s gone
What’s the best accounting method route for business tax purposes?
New final rule on independent contractors takes effect in March
Filing jointly or separately as a married couple: What’s the difference?
9 tax considerations if you’re starting a business as a sole proprietor
View All Tax Tips
View All Accounting Posts
View All Financial Tips
Smallbiz Builder Newsletter
Receive tips of the trade straight to your inbox
The SmallBiz Builder breaks down some of the top issues that small business owners deal with every day, offering the latest news, tax and accounting tips and helpful guides from our team of trusted advisors.