Davis & Bellomo

Over the last few weeks, individuals have begun to receive their tax information for the 2011 tax year. This means that it’s almost time to meet with your tax preparer or sit down at the kitchen table and prepare your own return.  For many people, either is analogous to going to the proverbial dentist, but in our opinion, it doesn’t need to be:  Instead, it should be an opportunity to better understand what for many people is their largest annual expense. The following are considerations for reviewing the results for getting ready to meet with your tax professional or for preparing your own return.  Read More »

A new year often brings optimism and a fresh outlook. Between the passage of the extension of the Bush tax cuts and the recent generally positive economic news, entrepreneurs are looking forward to 2011. In anticipation of growth, many small-business owners turn their focus toward investments. With all this in mind, it is important to remain cognizant of core business principles and to examine both growth plans and finances with the same forward-looking eye. Read More »

On Friday December 17, 2010, President Obama signed the Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act (New Tax Act). This act largely extended the 2001 EGTRRA and the 2003 JGTRRA tax acts, commonly referred to as the “Bush Tax Cuts,” which were scheduled to sunset on December 31, 2010. The New Tax Act provides: Read More »

Many corporations have chosen to be taxed as S corporations.  When an entity chooses to be taxed as an S corporation, there are certain tax considerations that need to be addressed.  The following is a brief discussion of a few select items to consider for S corporations before year-end: Read More »

As part of the recently passed tax bills, small businesses can take advantage of bonus depreciation in 2010 and 2011 and enhancements in Section 179 expensing in 2010, 2011 and 2012. These provisions are intended to encourage small business owners to purchase and place new equipment into service. Read More »

On March 18, 2010, the President signed the Hiring Incentives to Restore Employment Act of 2010 (2010 HIRE Act) into law. The 2010 HIRE Act has several business-friendly tax provisions that may benefit your business, including a payroll tax exemption and increased income tax credits for employers whose employees meet certain eligibility requirements. The legislation immediately enhances employers’ cash flow by permitting employers to retain the employer portion of the Social Security tax ordinarily remitted. Additionally, the Act benefits businesses that retain those workers. Read More »

With the passing of the Patient Protection and Affordable Care Act in March, many small businesses and tax-exempt organizations that provide health insurance coverage to their employees may now qualify for a special health care tax credit.  The credit, available this year, is designed to encourage small employers to offer health insurance coverage for the first time or to help maintain presently offered coverage.  The decision to offer health and other employee benefits is clearly a much larger consideration than what new tax incentives may be available.  Offering health coverage is best evaluated when keeping in mind corporate citizenship, a company’s ability to attract and retain quality workers, as well as the financial pros and cons.  Those considerations are each wildly important but too wide in scope for complete analysis here.  So, this post’s discussion will be limited to the more immediate tax implications for small business as a result of the Act. Read More »