JHS CPAs, LLP

As a business owner, you should know that you can save family income and payroll taxes by putting your child on the payroll. You may be able to turn high-taxed income into tax-free or low-taxed income by shifting some business earnings to a child as wages for services performed. In order for your business to deduct the wages as a business expense, the work done by the child must be legitimate and the child’s salary must be reasonable. You also may be able to achieve Social Security tax savings (depending on how your business is organized) and even make retirement plan contributions for your child. Contact us if you have any questions about the rules in your situation. Visit our website https://bit.ly/2C975YJ to read the full article.

Certain Tax Returns and 2021 Individual Estimated Tax Payments Still Due April 15th - Although the IRS's postponement of the April 15 income tax filing and payment deadline to May 17 may be a needed taxpayer relief, albeit short-term, taxpayers need to know this postponement applies only to individual federal income tax returns. First-quarter individual estimated tax payments are still due April 15. Other tax year 2020 tax returns--C corporations, LLCs, trust, gift and estate--remain due April 15 as well. See the full article published by the Journal of Accountancy. https://bit.ly/39DwD19

Are you considering buying a vehicle that you’ll use in your business? If you choose a heavy sport utility vehicle (SUV), you may be able to benefit from lucrative tax rules for those vehicles. New and used heavy SUVs, pickups and vans acquired and put to business use in 2021 are eligible for 100% first-year bonus depreciation. However, you must use the vehicle more than 50% for business. If your business use is between 51% and 99%, you can deduct that percentage of the cost in the first year the vehicle is placed in service. This tax break is available only if the manufacturer’s gross vehicle weight rating is above 6,000 pounds. Consult with us to help evaluate if this is the right move for your business. Visit our website https://bit.ly/2C975YJ to read the full article.